Landlord is stealing utilities!

[David T.]

Hey BP,

I need some expertise here.

I've just come across a situation in Atlanta where the landlord has been stealing utilities from their tenant. It's a duplex we're buying, one large unit and one small. There is only one bill for everything going to the larger unit which the tenant is paying without realizing they are paying for both units.

The landlord is charging the smaller unit for these services separately from their rent and pocketing the money and has been doing so for a while. There is no love lost between these people and if or when this comes out, the tenant will definitely blow a fuse (heh)

The big unit tenant is paying over market rent, btw and is an outstanding tenant.

.Any advice? - thanks in advance!

[Rick Baggenstoss]

Hey David -

I would provide the great, big unit tenant an incentive to stay for a long time AND show them you're fair.

Provide big unit, great tenant with a new lease where they pay less than before. Something like (original rent - $other tenant's utilities - $nominal payback fee)

OR put something of value into the property they could enjoy like a new fridge, W/D, or whatever would be a win/win for you both.

Rewrite and extend the lease at the same time.

I hate to see a good tenant go. I think moments like these deserve a little creativity.

Rick