Putting Utilities In PM's Name

Putting Utilities In PM's Name

Chicago, IL · Member since 2015 · 414 posts · 94 votes

Hi Everyone,

I'm a property manager in Chicago. Our owners have always paid their own utilities, but I've decided to start offering to pay utilities for them. I'm trialing this out with one client. Creating a business account with ComEd and Peoples Gas and transferring the bill into our name was easy. Like always, dealing with the city is proving to be more difficult.

To create a new account (business or otherwise), you need an account number. The account number for my trial building is already under the current owner's LLC. I've called a few times. A few reps have told me to have the owner cancel their account (Does this mean pay off the bill and call to cancel? I'm concerned about an interruption in service) and then to make an account in my business name under that account number. And that I will be able to add other account numbers to the same account later.

Another few reps told me that I need a letter of authorization from the owners on file which could take a month authorizing me to make changes to the account.

And another told me the bill has to be in the owner's name. But I have a PM buddy who manages tons of property who says they pay all their owners' water bills. So that can't be true. But he can't help me with details as he's past the "do everything yourself" stage of the business and doesn't remember.

Much appreciated,
Artem

1Reply
30 views

Most Popular Reply

Jonathan KlemmBusiness Member
Moderator
Contractor · Chicago, IL · Member since 2016 · 4k+ posts · 2k+ votes
2y

Hello @Art M. - You are connected with the right person with @Mark Ainley...another good Chicago person to connect with is @John Warren, who manages one of our buildings on the west side of Chicago.

I love the idea of helping out your clients more and taking over the utility bill...I have found tht most good property managers do.

See this reply in the discussion

7 Replies

Jump to latestLatest
  • Michael SmytheBusiness Member
    Real Estate Agent · Metro Detroit · Member since 2023 · 4k+ posts · 3k+ votes
    2y

    @Art M. why would you want the additional liability of putting the utilities in YOUR name?

    Our company keeps them in the owners' names, but either uses our mailing address or adds us a C/O (care of).

    We then manage the accounts and pay them for a small fee. 

    Logical Property Management4.9454 Reviews
  • Chicago, IL · Member since 2015 · 414 posts · 94 votes
    2y
    Quote from @Michael Smythe:

    @Art M. why would you want the additional liability of putting the utilities in YOUR name?

    Our company keeps them in the owners' names, but either uses our mailing address or adds us a C/O (care of).

    We then manage the accounts and pay them for a small fee. 

     @Michael Smythe Thanks, Michael. Are you in Chicago? How do you set this up with the city and the client? I just need to be able to pay the bill from our bank account and have the bills come to our email. When I go to set up an account with the city, it says that account number is already in use. The city reps have told me like 6 different things now.

  • Mark AinleyBusiness Member
    Property Manager · Roselle, IL (Chicago Suburb) · Member since 2013 · 2k+ posts · 1k+ votes
    2y

    @Art M. I will DM what we do and also a link to our Property Manager Best Practices Group.   

  • Jonathan KlemmBusiness Member
    Moderator
    Contractor · Chicago, IL · Member since 2016 · 4k+ posts · 2k+ votes
    2y

    Hello @Art M. - You are connected with the right person with @Mark Ainley...another good Chicago person to connect with is @John Warren, who manages one of our buildings on the west side of Chicago.

    I love the idea of helping out your clients more and taking over the utility bill...I have found tht most good property managers do.

  • Chicago, IL · Member since 2015 · 414 posts · 94 votes
    2y
    Quote from @Jonathan Klemm:

    Hello @Art M. - You are connected with the right person with @Mark Ainley...another good Chicago person to connect with is @John Warren, who manages one of our buildings on the west side of Chicago.

    I love the idea of helping out your clients more and taking over the utility bill...I have found tht most good property managers do.


     Thanks! I've PM'd both of them. Much appreciated.

  • Investor · Las Vegas, NV · Member since 2013 · 8k+ posts · 10k+ votes
    2y

    What the utility needed you to was have the owner schedule a disconnect in the future then you could schedule the utilities to be put in your name, like a tenant move out. 

    My PM offers to run and pay the utilities at no cost but we have “landlord accounts” that automatically switch already so I’ve handled it myself. I may take them up on it if we ever leave the state. They’re trying to remove the hassle of sending crews out during turnover and not having any water/gas/electricity. There is no risk to them as they have the Tennants security deposit, my repair deposit and all future rents to take the money from. 

  • Real Estate Broker · 3412 S. Harlem Avenue Riverside, IL 60546 · Member since 2015 · 6k+ posts · 5k+ votes
    2y

    @Art M. I'm glad we connected. These types of procedural issues are always complicated. I am pretty sure you already got the gold from @Mark Ainley with his wealth of experience. I will DM you my thoughts as well. We operate quite a bit in Berwyn, Forest Park, Cicero and the surrounding western suburbs, and I can tell you each town has its own way... 

Join the conversationCreate a free account to reply, vote on answers and follow this thread.