Baltimore City - tenants failure to pay water utility bills

Baltimore City - tenants failure to pay water utility bills

Rental Property Investor · Douglasville, GA · Member since 2015 · 83 posts · 67 votes

Hello fellow BP members, 

I'm not looking for answers, but I am curious if anyone with rentals in Baltimore City has dealt with the following situation:

Here's the scenario - I have a SFH rental in Baltimore City with a long time tenant. She's subsidized through Section 8, partially. Still paying her rent, but as of late, she's falling behind on paying her water bill. Not sure why. I informed her repeatedly if she's having financial trouble, then approach Section 8 on re-adjusting her rent portion until she has it firmly under control. Per the lease she's accountable for paying her water utility bills.

Now, here's where it's my problem.  Typically (in a place that makes sense), if someone fails to pay a bill, any bill, then the service is cut off by the service provider. That absence of service is more than enough incentive to get past due bills paid to restore service, especially if it's water.  Everyone needs running water where they reside.  However, Baltimore City doesn't cut water service for delinquent water bills, but simply places a tax lien on the property once the delinquent bill is over $1,000 over due and after failing to pay three consecutive delinquent water bills.  I hear NYC does the same, not sure why, maybe to save costs on continually cutting off and turning back on water for multitudes of properties.  In any case, it would certainly prevent further investment on my end on buying additional properties in Baltimore.  

To avoid any issues with the city, I paid the tenant's bill and informed Section 8.  My argument is that if the water service is never discontinued, then there's zero incentive for any tenant to pay their water bills in Baltimore City, at least on time.  

Again, I'm just curious if anyone experienced this.  

1Reply
51 views

Most Popular Reply

Rental Property Investor · Baltimore, MD · Member since 2014 · 247 posts · 321 votes
9y

If you think the returns are high in Baltimore because its easy, think again.  The city doesn't care if your having tenant problems.  If your the owner its your responsibility to pay the water.  Add the amount into your rent.  If section 8 doesn't care, then your screwed until the lease is over.  Picking the right tenant is probably the most important thing in Baltimore, period, again, no one cares about your money.  All you are is tax revenue for the city.

See this reply in the discussion

13 Replies

Jump to latestLatest
  • Investor · Monroe, WI · Member since 2015 · 691 posts · 610 votes
    9y

    Serve a pay or quit for her to reimburse you to the water bills and if she doesn't then evict. Make sure you know your states landland tenant regulations like the back of your hands. Good luck. 

  • Rental Property Investor · Baltimore, MD · Member since 2014 · 247 posts · 321 votes
    9y

    If you think the returns are high in Baltimore because its easy, think again.  The city doesn't care if your having tenant problems.  If your the owner its your responsibility to pay the water.  Add the amount into your rent.  If section 8 doesn't care, then your screwed until the lease is over.  Picking the right tenant is probably the most important thing in Baltimore, period, again, no one cares about your money.  All you are is tax revenue for the city.

  • Rental Property Investor · Douglasville, GA · Member since 2015 · 83 posts · 67 votes
    9y

    @Samantha Klein - in Baltimore, it's called a "Failure to Pay" notice.  Can't do that because the water utilities cannot be added to her rent, per local Section 8 rules.  You can't simply evict unfortunately.  I can take her to small claims court, get a judgment in my favor, and effectively get her subsidy voucher revoked.  That's the official plan of action per Section 8 and my attorney in Towson, MD.  

    @Ian Barnes - I agree with you about the age old sentiment of getting the right tenant.  I've lived in Baltimore for seven plus years before relocating to GA.  She's been my tenant since early 2012, effectively paying both her rent portion and water utilities bills with little to no issue.  I suspect she's run up on hard times financially. I can try to add this to her rent during the next HABC negotiation, assuming she's still my tenant.  

    I do thank you guys, but again, no advice is needed.  Just curious about anyone's particular situation that maybe reflected this scenario (Baltimore rental owners only please, thanks).  

  • Investor · Chicago, IL · Member since 2016 · 1k+ posts · 930 votes
    9y

    That's why YOU should pay water and just increase the monthly rent by the cost of the max water bill (use a summer month total).

  • Member since 2016 · 13k+ posts · 12k+ votes
    9y

    Interesting situation. It suggests possible adjustments to rentals in your area. First don't rent to section 8, only provide M2M leases and include the cost of water (+) in the rent.

  • Rental Property Investor · Douglasville, GA · Member since 2015 · 83 posts · 67 votes
    9y

    @Ray Harrell With subsidized tenants in Baltimore, you're not granted the rent you want, but the rent you successfully negotiate, with the HABC (Housing Authority of Baltimore City), which is slightly higher than market.  It may cover the water, it may not.  Roll of the dice.  We get the most we can, but no guarantees on amount.  

    @Thomas S.  Ah yes, thank you for acknowledging the subsidy component in my scenario.  Folks here assume I can just raise rents and evict people willy nilly, :-).  God bless them though, they're only trying to help.  Great suggestion - the property is located near the university hospital, a major jobs hub, so it would be attractive for a market tenant.  The funny thing is that I have another rental property in Baltimore County - a much newer home and in a much nicer area outside the beltway, near a major bus route and shopping center (Wal-Mart, Sam's Club, Home Depot, etc.), yet I have very few market applicants interested, even though it's being offered at the market rent.  We'll see how it goes.  

  • Investor · Baltimore, MD · Member since 2014 · 1k+ posts · 688 votes
    9y

    ive dealt with it....question answered

  • Real Estate Consultant · Joppa, MD · Member since 2015 · 218 posts · 178 votes
    9y

    Hello Rashad.  I greatly suspect she will definitely find a way to pay the water bill before her voucher is revoked. Unfortunately, your rent will probably then be late as a result.  Just out of curiosity, is you Ba. Co. rental in Rosedale, Towson or Owings Mills?  It seems odd that you're having an issue finding renters at market rate...

  • Real Estate Consultant · Joppa, MD · Member since 2015 · 218 posts · 178 votes
    9y

    Hello Rashad.  I greatly suspect she will definitely find a way to pay the water bill before her voucher is revoked. Unfortunately, your rent will probably then be late as a result.  Just out of curiosity, is your Ba. Co. rental in Rosedale, Towson or Owings Mills?  It seems odd that you're having an issue finding renters at market rate...

  • Investor · Anaheim, CA · Member since 2015 · 66 posts · 8 votes
    7y

    This is a follow up to the thread above. It appears that the Maryland General Assembly has ended the practice of attaching tax liens against homes for owner-occupied homes. The article is from last year. Is there an update for rental owned property?

    https://www.baltimoresun.com/news/maryland/politics/bs-md-water-tax-liens-20180409-story.html

  • Rental Property Investor · Baltimore, MD · Member since 2016 · 253 posts · 178 votes
    7y

    @Rashad Nelson I would advise the water bill be looped into the rent in baltimore city. For example: I had a deal under contract (Great deal with nice cashflow, the tenant was paying 1,450 per month in rent) and I had my title run a quick check on the property. The tenant had an 18,000 dollar water bill on the property and had not payed since 06! Like you said, in Baltimore the water does not shut off. Therefore the seller could not convey the property without paying that 18k water bill. Missed out on a buyer. Hope that helps you make a decision 

  • Developer · . · Member since 2014 · 520 posts · 162 votes
    7y

    I have one tenant in Baltimore who is always late.  We file and include the water bill.  Sounds like she knows the water will not be cut off.  Does she know it could impact her subsidy.   In some areas you can agree to cover the utilities and you will get a small increase.  The problem there is usage.  People will keep lights on and water running everywhere.

    Good luck in resolving the issue.

  • Tim JacobPro Member
    Real Estate Agent · Baltimore, MD · Member since 2016 · 520 posts · 379 votes
    7y

    In the city the bills are high and getting higher.  The county wont bump your bill high.  They charge a sewer tax onto property taxes in the rear they are still no where near the city.   The city is where you can be screwed for this.  The good news is in residential properties they arent hitting you with liens for high water bills though eventually you will need to pay it.  If you want to avoid this in MD go down to PG county where wssc is the water company.  They will disconnect after 3 or 4 months of non payment.  If you go into c grade neighborhoods or higher in the city you should be able to find tenants that will pay it if you screen thoroughly.  

Join the conversationCreate a free account to reply, vote on answers and follow this thread.