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Updated about 4 years ago, 10/20/2020

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6
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Valentina Ayala
Pro Member
1
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Tenant not paying the power bill

Valentina Ayala
Pro Member
Posted

Please advise on how to handle tenant not paying the power bill. My tenant refuses to pay the power bill because it's "too high" and the power is being disconected by FPL today. Any advice?

  • Valentina Ayala
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    Matt Devincenzo
    • Investor
    • Clairemont, CA
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    Matt Devincenzo
    • Investor
    • Clairemont, CA
    Replied

    Stay out of it...you're not FPL, and it doesn't effect you directly. After their power is cut off you can provide them a notice to correct the issue (I assume the lease says something about the tenant maintaining habitability of the unit) then they either pay the bill, leave voluntarily, or you evict. 

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    Derrick Dill
    • Investor
    • Hawaiian Gardens, CA
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    Derrick Dill
    • Investor
    • Hawaiian Gardens, CA
    Replied

    If lease states they they're responsible for electricity, and they're not paying electricity... Utility company will simply stop giving them electricity and they can sit in your rental with their candles and bill that is no longer too high

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    Adam Martin
    • Rental Property Investor
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    Adam Martin
    • Rental Property Investor
    Replied

    Not sure where you are but it’s getting colder and there could be freeze risks in the next couple months.  We just received a letter from our utility company that they will start disconnecting for non payment again starting next month, we are current so I assume they are sending it to everyone.  I would check in with the utility company occasionally to check to make sure utilities are turned on.  I don’t think you can issue a cure or quit until they get shut off but do so as soon as allowable.  Are they paying you on time because I feel they are going to have issues with rent soon if they can’t keep the lights on.  This may be a good time to offer an early out before they dig too deep of a hole and it starts to affect you.  If there is a freeze risk you are probably going to be better off putting it in your name while getting them out than risking burst pipes.  

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

    @Valentina Ayala  This can actually be a serious health/safety issue and I would not ignore it.  

    When tenants lose power, they don't typically move (especially when the reason they lost the power was due to not being able to afford it).  They will usually stay in the home and find other ways to provide light (candles), heat (propane devices, small fires), and cook (they will bring & use outdoor BBQ's and camp stoves inside).  

    They may even steal electricity by running extension cords to neighboring properties, or by creating dangerous/illegal connections that bypass the meter like this one:

    (I have personally seen everything I mentioned above.)

    What they're NOT going to do though is worry about how to power things they no longer think are a priority, like their vacuum cleaner.  (Your property is going to get gross, quick!)  

    Also, don't be surprised if other utilities start getting shut off too, like the water (you can bet they'll still keep filling up the toilets though, until they start overflowing).  

    This is such a huge health and safety hazard in terms of potential filth, vector control, and potential fires (which, by the way, not only put your property at risk but your neighbors' too), that cities/counties in my area have deemed a property that "lacks required utilities" to be "substandard housing".  In fact, one local Code Enforcement actually considers it a "Priority Violation" and can do an immediate inspection and order the occupants out and board up the house because it's not safe to occupy.  That's how serious this can be.  

    So what should you do?  First check your lease to see if it's addressed in there.  For example, in one of my leases, it not only requires the tenant to turn the utilities on in their name, it also goes on to state: "Tenant agrees not to disturb, terminate, interrupt, tamper with, adjust, or disconnect any utility service or submetering system or device. As with all over covenants and conditions on the part of the Tenant to be performed, violation of this section is a material and substantial breach of this Rental Agreement, and shall entitle Landlord to all available remedies under this Rental Agreement or applicable laws."

    Next, I'd check to see if there are any local laws/ordinances in your area that address the habitability of properties that do not have utilities.  (Like I said, there are laws/ordinances that address this in my area.)

    Lastly, I'd have an immediate conversation with the tenant and explain to them that having the power shut off is not an option and you will not permit it.  They need to do whatever is necessary to keep it on (work out a payment plan with the power provider, apply for financial assistance, borrow money from friends/family, etc).  If nothing else, it might be time to discuss options for them to move out, if you truly believe they can no longer afford to live there.  The last thing you want is for them to continue living there and for them to destroy your property.

    Good luck and hope this situation works out for you.