Water Utility

Water Utility

Investor · Hamilton, OH · Member since 2016 · 272 posts · 77 votes

Good morning everyone.

I currently have a wonderful tenant.  They have been in there for nearly three years and only two calls from them, only one of which I had to take action on.  They were a referral, so I didn't have to market it.  I did take a bit of a risk because they were loosing their house to foreclosure at the time, but in the discussion with them ahead of signing the lease, I felt that the issues that caused their default were not ones that would impact me.  

When we signed the lease, I thought that utilities are things that are out of my control, so I figured that it would be best to have the tenant be responsible for them.  Now after reading various posts and listening to some of the podcasts, it seems that some are saying that water should stay in my name.

Can we have a discussion about that?  Can we talk about why or why not that should be the case and what you're doing?

Should I allow the tenant to pay the water?

Should I pay the water and just include it in the rent?

Should I pay the water and include a clause that the tenant pay for excessive use?  If so, then how should this be worded in the lease?  How would I collect?  What is considered excessive so a court wouldn't find against me?

I'm putting a new property on the market for rent and would like to know prior to doing so. I'll start marketing shortly(within a week).

Thanks,

Brian

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  • Investor · Englewood, CO · Member since 2015 · 158 posts · 140 votes
    9y

    You may be able to have them billed under their name but be notified if they do not pay. I would never pay their utilities for them. 

  • Investor · Philadelphia, PA · Member since 2016 · 2k+ posts · 1k+ votes
    9y
    In most cases, it's best/easiest/cheapest to have the tenant pay for all utilities. You have to be a bit careful though, in some places water or gas are lienable - which means if the tenant doesn't pay, the requirement to pay falls to the owner of the house along with fees, etc. It all depends on your locale. Also in multi-family residences, the utilities need to be separately metered, and you need to be sure that each tenant is only paying for their portion. You have to pay for common areas. So all in all, I don't think there's a hard rule one way or the other.
  • Investor · Hamilton, OH · Member since 2016 · 272 posts · 77 votes
    9y

    I've always had them pay it, I was just wondering about the lien situation.

    Brian

  • Rental Property Investor · Buffalo, MN · Member since 2010 · 511 posts · 92 votes
    9y

    Call the city in which the rental is located and find out what they can do. You just want make sure they pay. 

    I've been stuck with uitility bills
    because the city couldn't get the money from tenants and it kicks back to the property owner to pay up. 

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