Utility Cost Averages Questions for Jersey City Area

[Shea Stringert]

Hey Everyone,

I'm putting together some analysis on a few properties in the Jersey City Area.  I'm not from here though and hoping you all can help me with some expense estimations.  I'll list them in bullet format for easier reading.  For this example let's assume it's a 2 unit building that is metered seperatly only for electricity.

1) Do you put into the expenses any cost for snow removal? If so how much?

2) What is a good estimate for yearly water/sewage utility cost on a 2-unit building?

3)How much do you estimate for garbage?

4) Any other utility cost expense I am missing?

Obviously you have maintenance and insurance but wondering what I can expect to pay for straight utility expenses. 

Thanks for your help and insight.

Best,

Shea 

[Shea Stringert]

I appreciate the thorough reply Ankit!  

Ankit Duggal said:

1) Do you put into the expenses any cost for snow removal? If so how much?

Here are my rules of thumb on it. I would be putting in annual expenses for both snow removal and grass cutting if you do not have a handy tenant in one of the units. I would build in $75 to $100 per month. 

2) What is a good estimate for yearly water/sewage utility cost on a 2-unit building?

I think Zhang estimate of $300 per quarter for water and about another $75 per quarter for sewer is a safe bet for a 2 family asset. 

3)How much do you estimate for garbage?

In Jersey City, garbage pickup is provided by the city and not private unlike other townships so that is already included in your property taxes. 

4) Any other utility cost expense I am missing?

Common Area electric. The one heating system can run you anywhere from $200 to $500 per month for heating bills that you would have to front for the winter months if it is gas heat. Oil would be much more. So estimate 6 months worth of heating bills unless you separate the heating system once you purchase the asset. 

Hope this helps in your analysis 

Ankit 

[Ankit Duggal]

1) Do you put into the expenses any cost for snow removal? If so how much?

Here are my rules of thumb on it. I would be putting in annual expenses for both snow removal and grass cutting if you do not have a handy tenant in one of the units. I would build in $75 to $100 per month. 

2) What is a good estimate for yearly water/sewage utility cost on a 2-unit building?

I think Zhang estimate of $300 per quarter for water and about another $75 per quarter for sewer is a safe bet for a 2 family asset. 

3)How much do you estimate for garbage?

In Jersey City, garbage pickup is provided by the city and not private unlike other townships so that is already included in your property taxes. 

4) Any other utility cost expense I am missing?

Common Area electric. The one heating system can run you anywhere from $200 to $500 per month for heating bills that you would have to front for the winter months if it is gas heat. Oil would be much more. So estimate 6 months worth of heating bills unless you separate the heating system once you purchase the asset. 

Hope this helps in your analysis 

Ankit 

[Xingxia Zhang]

Not sure about others, but United water charges us about 300/quarter for a 2-unit multi-family home in Jersey City.