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Updated over 8 years ago on . Most recent reply

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56
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Canneton Howard
  • Rental Property Investor
  • Logan, UT
23
Votes |
56
Posts

Inherited tenants say utilities were paid by previous owner

Canneton Howard
  • Rental Property Investor
  • Logan, UT
Posted

Hey all, I'm looking for advice on how to handle a situation with a newly purchased duplex in Colorado Springs. 

After purchasing the property just a few weeks ago I was on site to work on some needed repairs. I was talking with one of the tenants and she was complaining about the last property management (who had just taken over a few months ago) including how they never updated the lease to reflect that utilities were covered by the owner. Apparently the previous lease had that clause (according to the tenant). However, the current lease that came with the property when I purchased it and the MLS listing, both stated that all utilities are paid by tenants.

This tenant's lease is up the end of March and the other the end of January. There is a clause in the lease that a new buyer can terminate leases with a 60 day notice but that puts me in the dead of winter with vacant units.

Obviously I have no obligation to pay for utilities as it is not stated in the lease, and it would kill my cash flow. However, I want to handle this situation carefully and am looking for ideas. Thanks in advance.

Most Popular Reply

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5,544
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2,364
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Jeff B.
  • Buy & Hold Owner
  • Redlands, CA
2,364
Votes |
5,544
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Jeff B.
  • Buy & Hold Owner
  • Redlands, CA
Replied

READ the papers from the transaction - - for a rental You should have an ESTOPPLE for each unit.  It declares:

  1. rent & deposits
  2. length of the lease
  3. who owns the appliances
  4. which parties pay what utilities

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