Utilities

[Matt C.]

I just purchased a single family rental property in western Houston, specifically in the Katy/Cinco Ranch area. I've got renters lined up to move in for July 1, but I have a question about utilities.

Are there any utilities that I should keep in my name and just bill the tenants for? I know I've heard horror stories about tenants not paying resulting in a lien on the house instead of on the tenants credit. Obviously they need to pay electric, but what about water and gas?

[Deanna G.]

Hello Matt,

All my tenants pay all of their own utilities, with the exception of one.  I have one lady who would only pay her water bill when the city sent her a disconnect notice.  The city started sending the water bill to me, because they couldn't collect from her.  I told the city I wasn't going to pay for water I didn't use.  I asked them for a breakdown of what her monthly bill should be and they provided me an estimate of $69.  I raised her rent $75.00 and told her I would be paying her water/sewer/trash going forward.  I gave her 2 months notice and I also included a clause the made her responsible for any amount over $75.00.  This has worked great.

Good Luck