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Updated over 5 years ago on . Most recent reply

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Blake Cromer
  • West Lafayette, IN
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Tenant isn’t paying utilities even though lease requires it

Blake Cromer
  • West Lafayette, IN
Posted

I recently bought a duplex (first investment property) that has a tenant under contract until the end of March 2020. The lease states that the tenant pays all utilities. The previous management had the sewage in their name. The sewage isn’t metered for the duplex, so it’s billed as one with a fixed rate. That’s why it can’t easily be put in the tenant’s name and it is currently in my name. For the first sewage bill, I marked up and emailed a copy on the 15th showing that the tenant owes me half on the 1st the following month. The tenant paid rent, but is now 6 days late on the sewage. The lease states that if they fail to pay utilities that is in the management’s name then management can disconnect service without notice. There’s nothing about fees on unpaid utilities. Tenant hasn’t responded to multiple emails. How would you handle this?

Thanks in advance for your input.

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92
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Brian R.
  • Bayport, MN
52
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92
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Brian R.
  • Bayport, MN
Replied

As was mentioned above, I pay for the water and sewer for most of my properties, because in most areas, if the tenant doesn't pay them, the bill will be assessed to the property taxes.  I figure the average cost into the rent.

As to your comment about disconnecting utilities, every state I have looked into make it a criminal offense if you turn off any utilities, even if the tenant isn't paying you for them.  If it is in the lease that they have to pay them, and they don't pay, then you file a lease violation eviction against the tenant.  If you turn them off, the tenant can sue you in most states, and it will cost you a lot more than what the tenant didn't pay you.

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