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Updated over 2 years ago on . Most recent reply

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Dzenan Catic
  • Realtor
  • Grand Rapids, MI
4
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19
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How to handle utilities in a single family rental

Dzenan Catic
  • Realtor
  • Grand Rapids, MI
Posted

Hello, 

I am renting out my first property. It is a single family home. How do I go about utilities? Do you have the tenant put the water, gas, electricity, trash in their name and show you proof that they are paying them every month? or do you put the utilities in your name (or in the name of the llc) and just send the bill to the tenant to make sure it gets paid that way?


Curious if anyone ever had any troubles with tenants not paying utilities and how you went about that?

Thanks for your help!

Most Popular Reply

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Kyle J.
  • Rental Property Investor
  • Northern, CA
5,172
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Kyle J.
  • Rental Property Investor
  • Northern, CA
Replied

I have the tenants in my SFR put all utilities in their names.  

Some landlords will put utilities that can attach to the property (i.e. water/trash/sewer) in their own name to make sure they get paid, and then just bill the tenant for the cost or factor them into the rent.  

I wouldn't personally put any metered service in my name (i.e. gas/electric), ever.  There's just no incentive for the tenant to conserve and I wouldn't want to get stuck with a high bill.  Plus, at least in my area, utility bills like that follow the tenant, not the property.  So if the tenant didn't pay them, I'd rather they followed the tenant than me or the property.

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