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Landlord Utility Cost Calculator

Itemize the utilities you absorb as the landlord and total the annual cost. Includes a vacancy-carry adjustment so vacant months don't blindside operating expenses.

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hallway lights, exterior, lawn

utilities still run during vacancy

Monthly utility cost (avg)

$200

Annual total

$2,400

includes vacancy carry

Occupied-month cost

$200

Reading the number

Most US small multifamily owners pay water/sewer/trash and bill back to tenants via RUBS or sub-metering. Single-family rentals usually have all utilities in the tenant's name. Common-area costs (lawn, exterior lights) are landlord-only regardless.

During vacancy, you keep paying utilities you'd normally cover, sometimes plus minimal heat/AC to prevent damage. Roll vacancy carry into your projected operating expenses so vacant months don't surprise you.

How to Use

  1. Enter the monthly cost for any utility you (the landlord) pay directly. Leave $0 for tenant-paid items.
  2. Add common-area utility costs (hallway lights, lawn, exterior).
  3. Enter expected vacancy months per year — utilities still run during vacancies.
  4. Read the average monthly utility cost (used in opex projections) and the annual total.

Frequently Asked Questions

Should landlords include utilities in rent or bill separately?

Single-family: tenants typically take everything in their own name. Small multifamily: landlords often pay water/sewer/trash and bill back via RUBS or sub-meters. Large multifamily: utilities are usually billed back unit-by-unit through sub-metering or third-party billing services.

What's RUBS?

Ratio Utility Billing System — landlord pays the master utility bill, then divides it among units based on a fair-share formula (square footage, occupants, or fixtures). Cheaper than sub-metering, less precise.

Why does vacancy raise utility costs?

Vacant units still consume minimum water (drips), need heat to prevent freezing, and may need light/security electricity. Bills don't drop to zero. Plan a vacancy-month utility budget that's close to occupied levels.

Are landlord utilities tax deductible?

Yes — utilities paid by the landlord are deductible operating expenses on Schedule E. Keep bills and bank records as proof. Utilities billed back to tenants don't count as income or expense.

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