Sewer, water and municipal service fees have become a major operating expense. I’m sure these runaway fees have lead to the failure of many newer, under capitalized owners.
Last month the law changed on municipal utility charges, making it more practical to have tenants be responsible for these charges. We owe a lot of thanks to the work done by Gary Goyke in making this law a reality, as well as the support of the members of the Wisconsin Apartment Association, the Apartment Associations of South Central WI and of course the members of the Apartment Association of Southeastern WI
In addition to the potential financial benefit to owners, there is a societal and environmental benefit as this will certainly result in conservation. No more walking into a unit, only to see the tenant thawing dinner by running cold water over frozen meat for half an hour. Remember when you paid for heat and would find windows open on sub freezing days or when you paid for hot water and found your basements being used as a laundromat for friends and family.
The most important aspects of the law effect the 2015 billings. However there are some things we as owners need to do now to ramp up.
First, you cannot bill tenants directly for utilities that are not separately metered. This means for multiple unit properties the water needs to be separated and an additional meter added. In older Milwaukee duplexes this is not going to be a major job. The two plumbing contractors I spoke to felt it would be a $600-1000 per duplex to separate the water and install a second meter horn. Remember that in this style building you only need to separate the cold water to the lower unit faucets and toilet as well as the feed to the lower water heater and possibly laundry facilities.
Older side by sides and four families will take more work, read $, as they typically have a single cold feed to the upper units.
Second, for the benefit of tenants, owner occupants and the city’s ability to collect their utility bills; we must urge the city to go to monthly billings
Attorney Tristan Pettit shared the attached doc from the League of Wisconsin Municipalities that should be the first step in the road map to making the change.