Utility Caps. What is it?

You used to be able to rent houses with all utilities included.

This practice is rare now.

Why? The high costs of energy are making too much of an unknown for Landlords. In other words, they would never be able to determine how much they are making (or most likely losing) from month-to-month.

Enter the utility cap solution. I don't know who to credit for this but it is a great concept.

Here is an example of how it works:

The tenant rents a house for $1000 inclusive with a $200 cap. The tenant puts a deposit of $500. This means that the Landlord will pay the monthly utility bills up-to $200. If it goes over $200, the Landlord has the right to keep the overage from the deposit money.

This is a very fair setup as a tenant knows they have to keep the windows closed in the winter and the Landlord knows how much their cashflow is per month.

This can easily be written into a lease.

If you want more information about this or just the clause to add to a lease, give me a call. 519-966-5565. John Adams

Renter’s Insurance: Making Sure You Are Covered!

A Landlord’s house insurance does not cover your contents. This is something you have to provide yourself in order to be protected.

What does this mean?

It means that if the unit burns to the ground or flooding occurs or if someone breaks into the property, only your insurance will cover your contents.

Fire would not be the only problem. Almost all of Windsor is prone to flooding and any units with lower levels are bound to have troubles at some point.

Lesson, talk to your insurance agent to get a renter’s package.