Rental property water bill

[Tom Coakley]

I am in the process of refinancing my rental property and just received the lender disclosure document. It shows a large open water and sewer balance. I called the town municipal office and found that my tenant has not been paying the water bill. The lease states that tenant is responsible for all utilities and the tenant has registered the water account in their name. As part of my Re-fi, I need to pay this at close. Is my tenant ultimately responsible for this outstanding amount and What is my next step?

Thanks,

Tom