Estimating gas/hydro increase for additional tenants

[burnin_vernon]

I am renting out my house and I need to know what to charge the new tenants for Hydro/Gas. There are currently 3 adults in the house and it will be changing to 5-8, including children. I'm keeping the bill in my name and was going to charge based on my Equal Payment Plan of $87/m hydro and $117/m gas.

It's obviously going to cost more with more people so how do I estimate the usage/cost increase? I don't want to be a jerk and overcharge but I don't want to be undercharging and paying for the increase next year when my usage is reviewed.

(The bill has to stay in my name because there is an unmetered suite)

[Ducay]

Solve the following for your answer

x = (87+117)/3

[ricosuave]

well, when I had tenants, I put into the rental agreement that the tenants were responsible for any usage over and above reasonable use.

since I had the bills and an understanding of what that amount should have been, it was easy for me to compare usage before and after, between tenants, etc.

[burnin_vernon]

Originally Posted by Ducay

Solve the following for your answer

x = (87+117)/3

Thought about that; it seemed too easy. For example, you don't turn the furnace on any more for 5 people than you do 2, do you? Do families of 6 really pay over $400 per month on utilities?

[burnin_vernon]

Originally Posted by ricosuave

well, when I had tenants, I put into the rental agreement that the tenants were responsible for any usage over and above reasonable use.

since I had the bills and an understanding of what that amount should have been, it was easy for me to compare usage before and after, between tenants, etc.

That makes sense. I guess I should just find out what families, on average, pay for utilities. Most of the time I've paid bills in the past, it has just been me living alone.

[JustAnotherGuy]

Originally Posted by burnin_vernon

Thought about that; it seemed too easy. For example, you don't turn the furnace on any more for 5 people than you do 2, do you? Do families of 6 really pay over $400 per month on utilities?

Yes, it can make a difference. If I rent then the heat is turned up a bit more because they rent in the basement. For just myself I keep the heat at about 19. But I understand not all people can take it that low.

Also, more people means more water usage.

[JustAnotherGuy]

Also, with the budgeted plan you will have to pay the short fall in a lump sum when they review the monthly amount that you pay. I believe they do that once a year. For me I had a lump sum of over $600 that I had to pay.

[ken0042]

Why not have the tennants resposible for the bills? Best case if they over use; then they have to pay. Worst case was an episode of Holmes on Homes; he was helping a landlord recover the house from being a grow op. The Ontario Hydro guy said that if her name was on the hydro bill; she would have to pay for the electricity stolen.

[TurnedTheCorner]

Originally Posted by burnin_vernon

Thought about that; it seemed too easy. For example, you don't turn the furnace on any more for 5 people than you do 2, do you? Do families of 6 really pay over $400 per month on utilities?

I would go a little deeper in the bill and deduct all of the fixed charges - they'll be standard fees for transmission/transport, delivery, whatever. That will be your minimum.

Take the remaining variable charges and divide those by 3 to get a rough guess of how much per tenant to charge. Add in each tenant's share of the fixed charges, and you should have a good starting point until you have a better idea on how much the bill has changed with more tenants.

[Yanda]

Couldnt you just charge them X and then scan the bills and give them a copy after stating who owes who for the next month. If the bills come to $212 and they give you $220, just let them know next month they get a $8 credit to bills when it comes to paying you. Then just pay whatever the bill comes to out of your pocket..