With the monthly water/sewer bill in excess of $3500 for 46 tenants, it’s time for me to sub-meter one of my Michigan parks. However, I’m not sure how well the financial impact will be received by the tenants as most are on fixed or govt incomes.
I’ve been raising the rent consistently by $10/month every year (current base lot rent of $330), and I’m thinking that in lieu of rent increases for the next three years, I would sub-meter instead and have the tenants pay for water. The math dramatically favors sub-metering over rent increases and would impact the NOI in a big way.
Am I being to soft or concerned for the tenants well being?