Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
General Landlording & Rental Properties
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated over 3 years ago,

User Stats

2
Posts
1
Votes
Daniel T.
  • Rental Property Investor
  • Osaka, Jp
1
Votes |
2
Posts

Charging Bills that are Received After Tenant's Moveout

Daniel T.
  • Rental Property Investor
  • Osaka, Jp
Posted

We're househacking in an Atlanta-area basement and we split the utility bills with the main-floor tenants, who are schedule to move out in the last week of August.  However, since the electricity bill is charged on the 25th of month following the service term's month (so Sep 25th), our tenants will have moved out by the time the bill is charged.  Their previous payment history has been spotty, so we we're worried they'll neglect paying if they have no incentive.  Our options seem to be:

A) Take it to small claims court if they refuse to pay, which probably won't be worth the time/effort.

B)  Hold the security deposit until bills are paid, and deduct them if they're not paid in 30 days.  Our lease's security deposit is worded:  "The balance, if any, of this deposit shall be refunded to the Lessee within 30 days after Lessee vacates, less any charges for cleaning, repair, missing items of equipment or any damages sustained by the Lessor due to breach by the Lessee.", so I think the deduction should be allowable as a "damage" since the agreement states that the bills would be split and paid within 7 days of being received.  If our tenants pushed back and we had to go to litigation, do you think a court would see it that way?

C)  Eat ~$200 of unpaid utility costs.

We're looking at option B, but what approach would you recommend?  And would you recommend changing our split-utility payment strategy in the future?

Thanks so much for you consideration!

Loading replies...