Tenant Invoicing Me

Tenant Invoicing Me

Investor · Monroeville, PA · Member since 2015 · 3 posts · 0 votes

I have an interesting issue where I purchased a commercial property that was seller occupied.  The seller stayed in one of the commercial units and I assumed his existing lease as well as the other existing leases.  The property was advertised as separate utilities and all tenants pay their own utilities (I have this printed and saved electronically).  The property appraisal was done based on no utility costs (income method).  In the process of purchasing the unit the seller let us know that one of the units gas, water, sewer and electric is actually paid by his unit (shared) but that tenant only pays a monthly rent with utilities included. 

A month after closing the previous seller starts complaining that the shared utility unit is leaving his lights on when he leaves for the day and he's upset because he is paying for those utilities.  I tried to get the other tenant to be more conservative with electricity but haven't been overly successful (keep in mine that the seller negotiated his lease utilities included).  Now 2 months after closing the previous seller has started invoicing me (the new owner) for utilities based on square footage. Keep in mind that these are commercial units so he never hits his minimum water and sewer threshold and the temps have been about 40 degrees warmer than normal so heat has been minimal.  I told him his rent was discounted because he's responsible for utilities and that I wasn't paying his utilities.  I told him we could terminate his lease and I would assume utilities and give him a new lease with higher rent (utilities included) but he wasn't interested.  He's threatened me with charging me interest and late fees if I don't pay.  Unfortunately he has a bad reputation and I fear he will continue to try and nickel and dime me.  I honestly thing he's semi-retired and just bored.  Doesn't know what to do with himself so he sits around and puts hours on end trying to scheme up ways to start trouble.

Any one ever run into a case where a tenant tries invoicing you for things.  I have never requested any service or signed contract that would allow him to bill me.  He was totally aware of the situation since he was the seller.  Technically if I have to pay utilities then the real estate listing and appraisal was fraud because he lied.

I do want to try and keep him happy so I had thought about changing a halide exterior light to an LED and putting motion sensor occupancy sensor light switches in the unit so that lights turn off after 30 minutes to try and appease him.  That was before I received the late fee and interest empty threats.  Thoughts?

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Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes
10y

I don't think he has a case. That will be $100 for my opinion...

please send payment to

John Thedford
Naples, FL

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  • Contractor · Los Angeles, CA · Member since 2015 · 4k+ posts · 1k+ votes
    10y
    LOL, that's a funny story. Goes back to the contract, an attorney should give a better opinion.
  • Real Estate Agent · Algonquin , IL · Member since 2015 · 53 posts · 28 votes
    10y

    haha - please update this when you have resolution.  

  • Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes
    10y

    I don't think he has a case. That will be $100 for my opinion...

    please send payment to

    John Thedford
    Naples, FL

  • Severna Park, MD · Member since 2013 · 7k+ posts · 7k+ votes
    10y

     Check out the definition of mail fraud 

    https://en.wikipedia.org/wiki/Mail_and_wire_fraud

  • Property Manager · Livonia, MI · Member since 2011 · 4k+ posts · 1k+ votes
    10y

    install timers or motion sensors.

    he reminds me of the old man that has a corner lot that does not like when kids cut across the lawn.

  • Superintendent · Gainesville, GA · Member since 2015 · 107 posts · 35 votes
    10y

    haha....I meant that's terrible, that would be my luck to get a tenant like that. I have absolutely no idea how you should proceed. I'm thinking your lawyer needs a visit, keep us informed.

  • Investor · Monroeville, PA · Member since 2015 · 3 posts · 0 votes
    10y

    So I replaced the exterior light with an LED and put occupancy sensors up so that the lights won't be left on.  We've talked a few times and he's refusing to compromise and has started invoicing me for late fees.  I have a few options, ignore him, go after criminal charges for felony mail and wire fraud, take him to civil court or I can evict the trouble maker.  There's a statement in the lease that allows a new owner to evict him and terminate the lease.

  • Mike CumbieBusiness Member
    REALTOR® · Brockport, NY · Member since 2015 · 3k+ posts · 4k+ votes
    10y

    Hi @Harley S.,

    Evicting the other tenant does not make sense because whoever you put in there will be a source of complaint for him. Regardless of who it is he is going to expect that you pay him part of the shared utility bill. Even if the person is there 1 day a month your ex-owner will expect that he only pays X percentage of the utilities based on square feet. Now if you split off that unit for a whole lot of money he will be billing you back for the time lost due to construction going on. Anyway you do it you are dealing with him.

    See if you can put the utilities in your name and then bill him back for usage if he can't see the bills just what you send him then it is working properly. Him deciding how things are going to work is just going to cause these things to keep popping up. How long before he starts complaining about signage? May require a lawyer but giving one inch to a person like that is just going to be followed by another thing and another and another.

  • Investor · Monroeville, PA · Member since 2015 · 3 posts · 0 votes
    10y

    Well actually I'm happy with the new tenant.  I have the option to evict the previous owner from his lease since his lease allows the purchaser to terminate the lease when the property is sold.  He's the problem maker as I see it. 

  • Mike CumbieBusiness Member
    REALTOR® · Brockport, NY · Member since 2015 · 3k+ posts · 4k+ votes
    10y

    Ahhhh @Harley S.,

    In that case I like that answer. It may be what he really wants anyway and he figures if he sticks little pins in you long enough you will cut him loose. 

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