Sewer Utility billing question

Member since 2023 · 18 posts · 9 votes

Hello BP members, So I have a property in Camby, Indiana where sewer is managed by the Tri-County Conservancy District which is billed separately (flat $64 per month) and can't be transferred into the Tenant's. I was wondering if anyone here have a clause they use to bill the tenant the sewer utility as some form of additional rent.

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Nathan GesnerBusiness Member

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Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes

This is my clause. It includes space to spell out specifically what the tenant is responsible for. Pass-through utilities are those that get billed to the landlord, and we pass the charge on to the tenant.

UTILITIES. Unless otherwise stated in this Agreement, Tenant shall establish their own utility accounts, effective no later than the lease start date, pay all utility charges, and maintain accounts in good standing. Tenant agrees to pay any “pass-through” utilities within 15 days of notification. If Tenant fails to establish a utility account, becomes delinquent, or is disconnected for any reason during the term of this Agreement, Agent shall charge Tenant for the actual cost of utility use plus a $25 Administrative Fee for each invoice processed by Agent. Tenant shall be responsible for any property damage caused by failing to maintain utilities or report utility problems in a timely manner.

Tenant Utilities: ______________________________________________________________
Pass-through Utilities: _________________________________________________________
Utilities included with rent: ____________________________________________________
Propane: If applicable, Tenant shall return the propane tank level to at least _______% upon termination.

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Laura Stayton
Property Manager · DE · Member since 2023 · 248 posts · 133 votes
1y
Quote from @Jackie Liu:

Hello BP members, So I have a property in Camby, Indiana where sewer is managed by the Tri-County Conservancy District which is billed separately (flat $64 per month) and can't be transferred into the Tenant's. I was wondering if anyone here have a clause they use to bill the tenant the sewer utility as some form of additional rent.
You should have in your lease that the tenant is responsible for all utilities (this would include sewer even if it has to stay in the owner's name) Sewer bills come out once a year here (except some Town municipalities where they are billed monthly) We add them to the tenant ledger and the tenant reimburses.
If that isn't spelled out in the lease you'd need an addendum to include it or do at renewal.

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Bill B.
Investor · Las Vegas, NV · Member since 2013 · 8k+ posts · 10k+ votes
1y
Non-issue. I’m billed quarterly in Las Vegas. I simply take a picture, text it to the tenant and they add the payment to their next month’s rent payment. With a dozen properties you’d be talking about several thousand dollars out of pocket otherwise.
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Jackie Liu
OP
Member since 2023 · 18 posts · 9 votes
1y
I do have the utilities clause on my lease:
12. Utilities.Tenant agrees to pay for all utilities connected to the property such as sewer, cable, television, telephone, water, steam, gas, waste, trash, or electricity. Failure to transfer utilities will result in utilities disconnection by the Landlord within 2 days from the start of lease. Landlord shall be responsible for paying any Homeowners Association(HOA) dues and property taxes for the Property.
I was wondering if I should add a additional rent clause for the sewer just so I have my base covered in case tenant try to get "smart" with the lease.
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Henry T.
Member since 2022 · 1k+ posts · 1k+ votes
1y
Many places only allow utilities in the owners name. My properties' utilities are all in my name, but the tenant must pay them. It doesn't matter who's name is on the bill. You simply have to specify in the lease that its their responsibility to pay the bills
Your lease needs a re-write. Something like : Tenant is responsible for ALL utilities. Failure to pay the utilities when due is a lease violation and will result in a notice to pay or vacate. Tenant will also be responsible for the additional cost of any legal notice.
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Nathan GesnerBusiness Member
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Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
1y
This is my clause. It includes space to spell out specifically what the tenant is responsible for. Pass-through utilities are those that get billed to the landlord, and we pass the charge on to the tenant.
UTILITIES. Unless otherwise stated in this Agreement, Tenant shall establish their own utility accounts, effective no later than the lease start date, pay all utility charges, and maintain accounts in good standing. Tenant agrees to pay any “pass-through” utilities within 15 days of notification. If Tenant fails to establish a utility account, becomes delinquent, or is disconnected for any reason during the term of this Agreement, Agent shall charge Tenant for the actual cost of utility use plus a $25 Administrative Fee for each invoice processed by Agent. Tenant shall be responsible for any property damage caused by failing to maintain utilities or report utility problems in a timely manner.
Tenant Utilities: ______________________________________________________________
Pass-through Utilities: _________________________________________________________
Utilities included with rent: ____________________________________________________
Propane: If applicable, Tenant shall return the propane tank level to at least _______% upon termination.
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Laura Stayton
Property Manager · DE · Member since 2023 · 248 posts · 133 votes
1y
Quote from @Jackie Liu:

I do have the utilities clause on my lease:
12. Utilities.Tenant agrees to pay for all utilities connected to the property such as sewer, cable, television, telephone, water, steam, gas, waste, trash, or electricity. Failure to transfer utilities will result in utilities disconnection by the Landlord within 2 days from the start of lease. Landlord shall be responsible for paying any Homeowners Association(HOA) dues and property taxes for the Property.
I was wondering if I should add a additional rent clause for the sewer just so I have my base covered in case tenant try to get "smart" with the lease.
I think you're fine if that's in your lease to bill them.
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Gloria N GearBusiness Member
Realtor · Indianapolis IN · Member since 2018 · 464 posts · 339 votes
1y
I have one in Brownsburg that is similar, but there is a house and a converted garage on the same property. I estimate high of what the bill would be and put it on their lease, I have not had any issues this way and if the water bill goes up, I will increase on the next lease. Here is my simple wording.

"In addition, a fee of $40 is added per month for shared utility of water, sewer, and trash."

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Laura Stayton
Property Manager · DE · Member since 2023 · 248 posts · 133 votes
1y
Quote from @Gloria N Gear:

I have one in Brownsburg that is similar, but there is a house and a converted garage on the same property. I estimate high of what the bill would be and put it on their lease, I have not had any issues this way and if the water bill goes up, I will increase on the next lease. Here is my simple wording.

"In addition, a fee of $40 is added per month for shared utility of water, sewer, and trash.
We aren't permitted to charge tenants utilities unless they're separately metered in Delaware
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Alecia LovelessPro Member
Member since 2019 · 3k+ posts · 2k+ votes
1y
@Jackie Liu I have a table in my lease that lists all the utilities and then they are marked as to if the tenant pays them or the landlord pays them. This includes, water, hot water, heat, air conditioning, cable, security system, snow removal, lawn care.
In my area it is not customary for the tenants to pay for either the water or the sewer. It is just a cost of doing business for the landlord. I always account for this expense when I analyze a property.
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Scott P.
Rental Property Investor · Indiana...mostly · Member since 2019 · 468 posts · 245 votes
1y
If i was the Tenant I'd read those words and know that I have to pay the sewer bill.
As the landlord, I have the tenant put the Sewer in the tenants name in Indiana as of the agreed to move-in date before I'll give the tenants the keys. Then I usually get a letter from the Sewer provider citing the Indiana law which says I'm responsible for Sewer if the tenant fails to pay. That wouldn't work in Camby though.

Since Camby / the Tri-County Conservancy District won't allow the utility service the tenant receives to be in the tenants name, and since it is a flat fee, I'd ask if the tenant if they'd like to add it to the rent or if they'd like me to send them a copy and they pay me separately.

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