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Updated over 8 years ago on . Most recent reply

Account Closed
  • Jamesville, NY
34
Votes |
55
Posts

Best way to have tenant pay for heat?

Account Closed
  • Jamesville, NY
Posted

I have a duplex (I live in half) with completely separate utilities and fuel oil furnaces. I'm tying to figure out the best system for my tenant to pay for his fuel usage. The way I see it I have two options:

1) Work with the oil provider myself and then bill the tenant. This seems like the best way to ensure the tank stays full, but it is also extra work on my part, and then it becomes my responsibility to check my tenant's oil level and call when needed.

2) Have the tenant deal directly with the oil provider and be billed by them. The tenant would be responsible for seeing when they needed it and paying the oil company, and I'm out of the equation. This is the simpler, easier method but what's to prevent the tenant from using their last month of oil, not having it filled, and then leaving it for me or the next tenant to deal with? I know I'm not likely to see any money come after a tenant has moved out.

How do you guys normally handle something like this?

Most Popular Reply

User Stats

100
Posts
58
Votes
Allen Clark
  • Investor
  • Seattle, WA
58
Votes |
100
Posts
Allen Clark
  • Investor
  • Seattle, WA
Replied

I would do it and then bill them for usage (add it to the rent and include an invoice). If they are moving out the prorate based on past usage. 

Maybe, at some point, you can convert to natural gas?

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