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Updated about 1 year ago on . Most recent reply

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Holly Barrett
  • Real Estate Agent
  • Dawsonville, GA
143
Votes |
203
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Beware of Landlord Utility Accounts!!

Holly Barrett
  • Real Estate Agent
  • Dawsonville, GA
Posted

So I have to share this situation with others, I don't want it to happen to you!

In March of 2020 I sold a rental.

Prior to that I had tenants there. I had also set up landlord accounts w/water and electric. These were so that should someone move out and there was a lapse b/w tenants, the utilties would not be shut off. 

Unfortunately I didn't think about this existing when I sold the property. 

Fast forward to Summer of 2023. The property owners never opened a landlord account. So mine was still lingering. When they had tenants leave, no one moved back in for 6mo. My landlord account was triggered and I started getting auto drafted for bills! 

I finally caught on to this in Fall 2023. Month or so of going back and forth with the utility companies pleading my case. 

One of them finally refunded a portion. The rest they were threatening to send me to collections, so I ponied up.

Tracked down current owners. Ugly divorce, pointing fingers at each other. No one will repay me. 

Personally I find this totally immoral to allow a stranger to pay YOUR bills, even if it was my error for not officially shutting off that landlord account, but my opinon on morality didn't sway them. I'm out $470. Could have been worse. Thank goodness I caught on to it at all!

So moral of the story. Don't do those landlord accounts. Not worth it. 

Most Popular Reply

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Greg M.#2 General Landlording & Rental Properties Contributor
  • Rental Property Investor
  • Los Angeles, CA
4,937
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2,093
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Greg M.#2 General Landlording & Rental Properties Contributor
  • Rental Property Investor
  • Los Angeles, CA
Replied
Quote from @Holly Barrett:

So moral of the story. Don't do those landlord accounts. Not worth it. 

Not the moral I took away from the story. My moral has personal responsibility to watch my finances and mail. My utilities contact me when the account reverts into my name. 

See if you can put a mechanics lien or similar on the property. Some places it is very easy. When they go to sell it, it'll be easier for them to just pay it off during escrow that go to court and argue that they didn't owe you the money. 

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