Dilemma with tenant

[Steve T.]

Hey everyone,

I'm in a bit of a dilemma and could really use some advice. I own a laundromat that has a dry cleaner and a 1 bedroom attached to it. I've been renting out the dry cleaner at a low rate of $1500 for the storefront. The reason for this lower rent was that the tenant was responsible for paying the electricity bill for the apartment behind the storefront. That’s because the electricity wasn’t split up.

Things went smoothly from May 2022 to May 2023, but recently, the tenant has been complaining a lot about the electric bill. We did just a month to month in June, and in July we had a talk about me installing a new electric meter. 

In July, I verbally told him that once the electrician installs the sub meter that the electric bill will be split. I drafted a new lease agreement stating that I would have a sub meter installed by my electrician to separate the electricity costs. The tenant agreed to this arrangement.

Fast forward to now, my electrician is just about done with the sub meter installation, but the tenant surprised me by calling yesterday and saying that I owe him for June, July, and August. He even deducted the alleged electricity costs from his rent payment, even though that wasn't part of our agreement.

I'm not sure how to handle this situation and could really use some guidance on what steps I should take. Has anyone else dealt with a similar situation before? Any advice would be greatly appreciated!