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Updated almost 2 years ago on . Most recent reply

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Zachary Brown
  • Rental Property Investor
  • Arlington, TX
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6
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$20k Water Bill Balance on Rental I am Selling - Who is Liable?

Zachary Brown
  • Rental Property Investor
  • Arlington, TX
Posted

Getting ready to sell a rental when I saw the most recent water bill balance was $20,000. Turns out, the (month to month) tenant was out 5 months ago before a pipe burst and the city turned it off. During this time my PM was pursuing an eviction, but had to get a certificate of occupancy to register with the city first. Finally, got a search warrant to do the inspection and realized the tenant had been gone since December 2022. I only have communication from the PM indication the tenant was in the house to their knowledge. Any advice on how to remedy this? Who could be liable? Oh, forget to mention there is also foundation damage. Any advice welcome. Thank!

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Nathan Gesner
  • Real Estate Broker
  • Cody, WY
41,153
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28,123
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Nathan Gesner
  • Real Estate Broker
  • Cody, WY
ModeratorReplied
Quote from @Zachary Brown:

Find a new PM. In case you misunderstood, I'm suggesting you find a new PM. Now.

When a Tenant is not paying rent and the property manager is actively pursuing eviction, someone should check on the property regularly to determine if the Tenant is still living there or if they have abandoned. Your PM has no communication with the Tenant, no rent, and they don't even check on the property to see if he's still living there?

In my office, I suggest checking on the property once every 1-2 weeks, depending on the situation. 

In your case, someone went to the house, found the door locked, and then didn't go back for five months!!!! Did they even bother to look in the windows?

The law requires a Landlord to give notice of entry; it does not require Landlord to get permission. Your PM should have posted notice on the door stating they would be back to inspect the property in 24, 48, or even 72 hours. They then go back with keys and/or a locksmith. If they are afraid of a violent confrontation, then they can call the police for an escort. If they had taken this simple step, they would have discovered the property abandoned in December. They could have turned the property around and rented to a paying Tenant in less than a month. You would have earned five or more months of rent income, saved the $20,000 water bill, and saved the cost of whatever damages you are now forced to repair.

I'm going to make a bold statement and say that your PM made an amateurish mistake that cost you tens of thousands of dollars.

  • Nathan Gesner
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