Utility expenses are a major component of operating costs for multifamily properties. These costs cover essential services such as electricity, water, gas, and trash removal. Common utility expenses include:
Electricity
Powering common areas (e.g., hallways, lighting) and vacant units.
Water and Sewer
Costs for water usage and wastewater management.
Gas
Natural gas or propane for heating, cooking, and hot water.
Trash
Dumpster services, which can either be included in contract services or categorized as a utility expense.