Extremely high utility cost

[Calvin Lin]

Hi folks,

I have a sticky situation at one of my condo rentals in Raleigh, NC.  It is a 4 BR unit where I pay the utilities.  The renters are all students at the nearby State U.  The electricity cost is paid by me due to the fact that it is easier to rent that way and some of the renters were holdovers when I purchased it late 2015 and that was what the old lease said.  For some reason the last few months the electricity bill has gone up to almost $300 per month.  The lease does not have a utility cap.  Questions:

1) I have a manager for this unit but she has not responded to my concern about the high electrical bills while other issues do get her attention.  My guess is that she doesn't think this concerns her and her only job is to collect the rent and pay the bills.  My contract with her company does not mention anything specific about a situation like this where tenant technically did not break any rule but is costing me a fortune nevertheless.  What do you think a property manager's responsibility should be in such a situation?  

2) If my manager does not get involved I feel that I still have to find out what is going on myself by sending the renters a letter to ask them what is going on in the condo, like are they just setting the thermostat too low all day every day or is there something malfunctioning in there.  What is the best approach here, given that they are under no contractual obligation to help me to lower the utility bill?  Do I just flat out ask them to reset the thermostat or something or is there a better way?

Thank you for your inputs.

[Neil Schoepp]

@Calvin Lin 

1) I believe the PM should have atleast responded to you stating why this is out of her scope if indeed it actually is.  I would also expect the PM to brainstorm with me for a suggestion of how to go about rectifying the situation. This can't be the first time a situation like this has come across her desk. For her to have no communication with you sounds like after you complete step two then step three is to start asking about other PMs.

2) Ummmm YES! You have to find out what's going on. I only have a few units here local and I self managed. I know all my tenants and they know me. So I can only tell you what I would do. I would call them and set up a visit. I would explain to them what is going on and ask if there have been any problems. Have they notice the HVAC constantly on and not kicking off? If you have a septic pump have they notice if that has been on at different times of the day? How old are the appliances, could it be the fridge? Exterior lighting being left on? 

I had a friend that this happen to and they call the electric company. The company was able to tell them when the spikes were happening. They also suggested looking at things like fridges, dryers, dehumidifies, fans, lighting, pool pumps, sump pumps etc. It turned out to be a defective septic pump it would run for a few hours then turn off then run then turn off. How the dam thing didn't burn out is beyond me. 

You should NOT go in there from the angle of "dam you guys for leaving the Ac on 24/7 and driving my bill up you ungrateful fools". Instead you would ask for their help in trying to solve this problem that you came across. Making them part of the solution. 

So what have you amended the next lease to read. That landlord is responsible for utilities up to X amount or that tenant is responsible?

Please keep us advise as to what the problem turns out to be and the solution you finally come up with as someone lurking out there just may benefit.