Gas Leak Not Reported for 5 Months. Who Pays Gas Bill?

Question

My tenant noticed their gas bill was much higher than normal ($150) and reported a gas leak which was quickly resolved (in 1 day). The issues were related to some joints around the water heater that needed to be replaced as well as a pilot to an unused furnace that was never shut off. This is definitely not the tenant's fault.

However, going back, they realized that their gas bill has actually been high for the past 5 months but they never noticed because they've had their account set to autopay. Obviously, this part is on them for not reporting the issue immediately.

They're asking for some sort of credit, and I believe they're entitled to something, but I'm not sure what is reasonable. My current thinking is that it should be for 1 month of a gas bill which is representative of how much extra cost they would've incurred if they didn't notice a high gas bill for 1 billing cycle. Any other opinions?

Frank Chin · Answer

I would take the position that I agree crediting the tenant for a months gas use is a good idea and to maintain a positive relation with the tenant. I might do two months. You mentioned the leak was a plumbing issue as well as the pilot on an unused furnace. The way I see it, you're partly at fault. I owned duplexes and triplexes. drive by to do monthly inspections. In my case, furnaces and hot water tanks are not located in the tenant's unit, so there is no way they can smell a gas leak. I don't expect them to do a monthly visit to the basement to check gas or water leaks. It's on me. Thank goodness it was reported to you, fixed, before deteriorating further causing injury or death. There's also been discussions here on water leaks and running toilets causing high bills. The opinion here also always is that it's "all on the tenant". But in NY here where I am, if a constant water leak is discovered, and then fixed, you can have it credited by the utility. I had a high water bill once, result of a running toilet, called a plumber to fix it, and he alerted me to the granting of such a credit. But I have to have a plumber fix it, submit a plumbers bill, and I had it credited. It was not advertised back then, but it's now mentioned in the utility website citing it as a conservation measure. I'm sure utilities do grant credit in these cases, if people get after them. See: Utility credit high gas bill As I mentioned, it's not something they openly advertise. But in landlord tenant cases, why would anyone do this if all you have to say it's the tenants fault for not checking his bills. If I was the tenant, I would get hold of the local TV station. Here in NY, all the TV stations have reporters that handle consumer complaints, and your tenant's gas bill would make a good story. The headline would go something like "Landlord blames high gas bills not on his lousy plumbing but on tenant too lazy to check his bills".Some years back, I had a busy job, take night classes, and had bills on autopay. It's not unusual that I would not notice a bill is hundred more than usual and it would take me a few months to notice it.

Peter Mckernan · Answer

@David Eiges I would say that it is on the tenant completely since they have full access to the gas bill and pay it as well while seeing the trend going up in the usage. There is a rental I have and the city for a long time had us keep the water/trash bill in our name, and there were some noticeable leaks that I noticed on the bill because of that early detection we were able to catch the water heater leak and main service leak. In the end, we ultimately credited them some cash; however, this was a small amount and was because at the time had possession of the bill catching the trend. As anyone living in a home the bills and being at the house consistently are the vital signs to let you know if there is something wrong, that's for owner-occupied or not. Use this data as a tool, and it should be the same for the tenant living there and their responsibility.

Billy Smith · Answer

Just found a gas leak in the gas pipe down by the furnace ,called the gas company they came out with the sniffer found a small leak ,I then fixed it .The renter should pay attention to their bill or report smells .

Nathan Gesner · Answer

I would not compensate them. It's not their fault. But it's also not your fault. They are responsible for utilities, which means it is their responsibility to review the bill each month and identify any problems.