RUBS billing reconciliation after buying apartment

[Mark Grabski]

Long time lurker, first time poster... I bought a small apartment a month ago. RUBS were in place, and as such, the former owner paid upfront for utilities, and then after bills were reconciled, tenants were charged.  The billing cycle was roughly the 15th of the month through the next month.  We closed on the property just prior (~2 days prior to the close of the utility billing cycle).  So tenant utility bills came to the tenants for the PRIOR months utility service, AFTER we closed, and were paid to us (new owner).  The former owner is now coming back and saying those should have been theirs as they floated the cost in the prior month.  It should have been part of the price/settlement...  but the other reality is we weren't counting on it.  My question to everyone here is basically what would you do?  

1) give former owner the tenant payments for the time they owned asset?

2) keep the Utility payments as your own revenue as the revenue was recognized during your ownership?