Need urgent -Atlanta watershed - $5000 bill - they shut service

Need urgent -Atlanta watershed - $5000 bill - they shut service

Lender · USA · Member since 2015 · 212 posts · 53 votes

All,

I recently purchase and rented 3 properties. in all 3 cases I tenant left after some time and I had to turn water in my name... when bill came was outrageous: $1000-$3000 each bill. Almost $6000 in total. In all 3 properties I know there was a issue with prior tenant water bill: in one case tenant has been delinquent, in the other case tenant used a stolen meter, in the third case apperantly meter was magically on physically, but in the system it was off.

I had a plumber going in to investigate leaks. While he did find mutiple leaks (toilets, gaskets misssing etc), he told me that none of them was worth more than $300 dollar bill... 

Unfortunantly he also told me that City of Atlanta adjusts bills for burst pipes in the front yard because they can't be detected, but will not adjust bills for leaks in the house, because they consider them negligence, as they can be seen.

In my case I suspect the city is charging me for what the tenants owed, but I am not 100% sure.

They sent me a letter that if I do not pay by Thursday Jan 5th, they will shut water off. As soon as I received the bills I filed for a dispute, over the phone they told me that I do not have to pay the bill till the dispute is resolved, but now they sent me a letter saying that they are shutting utility off... crazy.

I am planning to go tomorrow to negotiate... however, I have had horrrible expericnes with them so far and found out that typically they do not tell me what is going on (not sure if they hide things, or if the people at the window are not knowledgeble, or if they just do not care)... and there is not much hope unless you know someone.

A friend of mine (another investor) told me that he got a $64,000 (yes you are reading it right... $64,000 bill) that they would not reduce... he contacted the news and once they found out it was investigated by the media they immidiatly cancelled the bill. Now in his case was more evident and it was a "better story" for the media then my billls.

I need to go tomorrow because they wrote that they day after tomorrow they will shut off the service. Please let me know any word of wisdom you might have... specifically let me know if you went through the same thing and how you resolved it... I truly appreciate!

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Investor · Atlanta, GA · Member since 2013 · 3k+ posts · 3k+ votes
9y

This is the current, 2016, Georgia code in Lexis Nexis

§ 36-60-17. Water supplier's cut off of water to property because of indebtedness of prior owner, occupant, or lessee prohibited; records required; statement of past due amounts; limited liens for unpaid charges for water, gas, sewerage service, or electricity


(a) No public or private water supplier shall refuse to supply water to any single or multifamily residential property for which water has been furnished through the use of a separate water meter for each residential unit on application of the owner or new tenant of such property because of the indebtedness of a prior owner, prior occupant, or prior lessee to the water supplier for water previously furnished to such property.

(b) For each new or current account to supply water, the public and private water suppliers shall maintain a record of identifying information on the applicant for the water service and shall seek reimbursement of unpaid charges for water service furnished initially from the person who incurred the charges.

(c) (1) Any real property owner or tenant, person having executed a contract for the purchase or occupancy of real property, attorney closing a real estate transaction for the purchase of real property, or lender considering the loan of funds to be secured by real property shall be entitled upon request to a statement from a public or private water supplier setting forth the amount of water charges currently and past due and any late charges and interest applicable for water supplied to such property. Such request shall:

(A) Be in writing;

(B) State the address of the real property for which water was supplied;

(C) Be delivered to the billing address of the public or private water supplier by certified mail, return receipt requested, statutory overnight delivery, or electronic means if electronic communication is permitted by such supplier; and

(D) State a return address or e-mail address to which the statement reflecting the moneys owed is to be directed.

(2) Any request transmitted by electronic means shall be considered received on the first business day following such transmission.

(3) The public or private water supplier shall furnish such statement to the requestor by certified mail, return receipt requested, statutory overnight delivery, or electronic means if electronic communication is provided by the requestor within ten business days of receipt of such request. Such supplier may charge a fee not to exceed $10.00 to provide the requested information.

(4) The failure of the public or private water supplier to provide such statement within such ten business day period shall:

(A) Cause any lien for unpaid charges provided by this Code section to be extinguished and to be of no force or effect as to the title acquired by the purchaser or lender, if any, and their respective successors and assigns in the transaction contemplated in connection with such request; and

(B) Prevent the public or private water supplier from denying water services to the new real property owner or tenant.

(5) The information specified in the public or private water supplier's statement shall be binding upon the public or private water supplier as of the date of the statement and for 30 days thereafter. When payment in full is tendered within such 30 day period, it shall extinguish any lien by operation of law which the public or private water supplier may have against such property.

(d) A public or private water supplier shall not impose a lien against real property to secure unpaid charges for water furnished unless the owner of such real property is the person who incurred the charges and shall not deny water services when such a lien has been extinguished.

(e) This Code section shall not apply to associations that are subject to Article 3 of Chapter 3 of Title 44 which supply water.

(f) A public or private supplier of gas, sewerage service, or electricity shall not impose a lien against real property to secure unpaid charges for gas, sewerage service, or electricity unless the owner of such real property is the person who incurred the charges.

Code 1981, § 36-60-17, enacted by Ga. L. 1994, p. 1957, § 1; Ga. L. 2016, p. 240, § 1/SB 206.

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  • Member since 2018 · 11 posts · 1 vote
    8y

    I just replied a long message but don’t see it posted so here’s the short version.  It’s been a year since city of Atlanta water tricked me into paying my tenants $3200 bill so I will let myself lose that battle.  Ugh. 

    My bigger battle is my $17,000 water bill that city reduced to $10,000 but I sat in front of a panel last Friday and they won’t reduce my bill any more. Can I possibly win if I go to superior court as I don’t believe the duplex leaked this much water.  I believe it’s their equipment but they blatantly refuse to consider that the issue is their equipment .  It’s Hard to prove either way so they continue to bill me $11,000.  This infuriates me.  

  • Lender · USA · Member since 2015 · 212 posts · 53 votes
    8y

    Now - I do know of a success story from a dear friend of mine. He got a $64,000 water bill. After months of struggling he called the news and they immidiatly took bills to $0. BUT it was a $64,000 which I told him is almost better than a $5000 as it was obviously wrong. 

    2+ years ago a group of people like us got together and brought this to the news. In response in March 2016 watershed did an amnesty month where they were reasonable 

    Then everything went back to normal. Maybe we should get together 20+ of us investing in the Atlanta watershed area?

  • Investor · Atlanta, GA · Member since 2013 · 3k+ posts · 3k+ votes
    8y

    I'm in.  But when I did a call to get people together,  nobody else came foreard

  • Member since 2010 · 5 posts · 0 votes
    7y

    I at one time was the largest single family landlord with Atlana Housing Authority. I ahve had this issue many times. To Follow is Ga Supreme Court ruling>  Federal Home Loan Mortgage Corp vs City of Atlanta (no S08Q1846) (MArch 23, 2009) is a case heard in front of Ga Supreme Court and rendered a verdict in favor of FHLMA. This deals with this exact issue and the case law referenced above. I have forwarded a copy of ruling to closing atty's several times and brought it up with Atlanta Watershed when trying to have water cut on or selling/buying a home in ATL.

    My opinion:

    Atlanta Watershed does not care they are breaking the Law. They do this on a regular basis. Best to carry this law and case with you and quote if often.

    That said Atlanta Water Bills regularly run $175-275 per month on my rentals. I think the most expensive Water in the country. Here is why: Atlanta Sewer Systems were crumbling and still are. I believe in 2004 all property owners in Atlanta were assessed $350 on their property taxes but that was not enough. So they raise there Sewer rates to approximately 3.5 times that of the water rates. But that was not enough. So they raised the local sales tax from 7 to 8% to also raise money to rebuild the sewer systems. But thta was not enough. Now Atlanta Watershed is involved in an illegal scheme to bilk unsuspecting owners out of $100 s of millions of our money. Is it fair. No not even legal. Love to articipate in calss action for tis. Any atty takers???

  • Investor · Atlanta, GA · Member since 2013 · 3k+ posts · 3k+ votes
    7y

    Hi, Lee, 

    remember me from Sims?

    I recently got them to refund me 2400 that were falsely collected when I sold a house. But I still have another$  4800 issue that they simply won't do anything about. Have given all of the legal notice, that I have to do with the City's legal dept. So, now I'm ready to take them to small claims court. 

  • Member since 2019 · 1 post · 0 votes
    7y

    @Michaela G.  Hi, I am in the same basket, just sold my house a week ago , then found out that the property has $3,200 water bill from previous tenant ( 05/2017 -12/2017). Went on 04/25/19 to city of Atlanta and they said they will pass the bill to the collection agency.

    I ended paying it in order for me to close on the house. i just file a report with ethics violation or file a complaint today. on 05/03/2019.

    @Michaela G Can you please tell me how did you get a refund? Thank you

  • Investor · Atlanta, GA · Member since 2013 · 3k+ posts · 3k+ votes
    7y

    I only got refund on one item. The other one I'll have to file a lawsuit. I did notify the city as per their law that I will be filing for both of the cases. 1 they paid, the other one they didn't. 

  • Member since 2019 · 1 post · 0 votes
    7y

    @Lee Foxworth Have you had success quoting this case law to closing attorneys? I sent it off to my closing attorney and he doesn't seem to think it will help. From our conversation this is more in reference to bills accrued by renters and if the prior owner of a foreclosure property has a bill than the new owner is responsible regardless of the number. Do you have a closing attorney who uses this case law to insure over these large water bills? Long story short we purchased a property at Trustee Sale and found out the prior owner had a balance of $31,500 from Atlanta Watershed. Nothing recorded of course which to me seems ludicrous.  In every other area we've invested in these type of liens need to be recorded to be valid and have priority. 

  • Investor · Atlanta, GA · Member since 2013 · 3k+ posts · 3k+ votes
    7y

    Have you checked how old this lien is? They can't collect after 7 years

  • Real Estate Broker · Atlanta, GA · Member since 2017 · 229 posts · 145 votes
    7y
    Originally posted by @Jamal Berrada:

    @Michaela G.  Hi, I am in the same basket, just sold my house a week ago , then found out that the property has $3,200 water bill from previous tenant ( 05/2017 -12/2017). Went on 04/25/19 to city of Atlanta and they said they will pass the bill to the collection agency.

    I ended paying it in order for me to close on the house. i just file a report with ethics violation or file a complaint today. on 05/03/2019.

    @Michaela G Can you please tell me how did you get a refund? Thank you

    I ran into an unpaid water bill from a past tenant on a property I recently bought.  According to my attorney, the city can't put a lien on the property for unpaid bills from a tenant, only if the bills were from a past owner.  

  • Member since 2018 · 11 posts · 1 vote
    7y

    I’ve had so many issues with city of Atlanta watershed.  From being forced to pay a $3200 bill from a tenant who knew they would never turn off his water and as he put water under his name, I had no idea I was responsible for paying almost 3 years for his water.  

    When my next tenant went to go turn water Inc watershed told him to tell me I had to pay the prior tenants bill.  When I went to city of Atlanta to ask for the bills they said they couldn’t give me any information on the account as it was under my prior tenants name.  When I asked them why they never notified me that my tenant wasn’t paying his bill they said they couldn’t give me any infuriation. 

    How incredibly ridiculous.  The city should turn the damn water off of a tenant doesn’t pay his own bill and not make hard working landlords pay, this is not a 3rd world country landlords should have rights too to protect them from scamming tenants.   Just remembering this pisses me off.  

    Now I ALWAYS charge my tenants $100 a month for water included in their rent. 

    According to city of Atlanta water meters  I’ve had SIX water leaks on 6 different house. One of my bills exceeded $19,000.  

    I call BS.   I’ve paid plumbers $350 to tell me there’s no leak.  Something isn’t right.  

    When I bought my foreclosed houses in 2014, every single one of them had an outstanding water bill balance due of over $20,000!   The bank that owned the foreclosed houses had no choice but to pay the city of Atlanta so they could unload their inventory.   I never believed that an abandoned foreclosed house could have such incredibly high bills.  I felt City was taking advantage of the foreclosed houses crisis and gouging bills as banks don’t have the crews ir resources to investigate the water bills as they only find out right before closings after a title search.   I’m sure if ALL of my 6 foreclosed properties had a water bill over $20,000 and the banks paid these bills, that ciry if Atlanta has raked in millions of dollars from such transactions.  

    As a real estate investor, my biggest burden and expense has been city of Atlanta watershed.  I’ve called them

    Over 45 times with 10 visits, 6 plumbers and over $10,000 in expenses over 4 years just on ONE property.  

    The last visit I had at city of Atlanta was the first real intelligent conversation I had and both the lady helping me and her supervisor helped me with a $16,000 water bill.   However I still owe $3500 from another tenant who figured out that he could screw his landlord by not paying his bill.  Why the heck does city of Atlanta even bother putting water bills under new tenants names if they will never pursue the tenants and instead make the landlords responsible?

    It’s a total scam and the more tenants that find out, the more watershed will help in screwing honest landlords over. 

    It’s disheartening.  

    I hope someone in this group has the power or money to reveal this scam.  

  • Member since 2018 · 11 posts · 1 vote
    7y

    Nicolas. City will try to force you to pay. 

    When I had a $3200 bill from a tenant city made a deal with me.  If I paid a water bill of around $200 from 6 years prior to me even owning the house, they would reduce my current tenants bill by $500. 

    I did the deal and was forced to pay $2700 on the spot.  They man at Ciry told me he needed to clean up his books   

    I felt like this was so shady and unscrupulous but it’s theur game, theur rules, they had the power. 

    I had my new tenant with kids with a uhaul in the driveway so I was certainly forced to pay the last tenants bill as ciry water told me they wouldn’t let new tenant turn on water until I paid !

    I hope these things aren’t still happening I’ve heard the new Mayor has cleaned up a lot of these messes   

    A supervisor named Jeremy at city of Atlanta was my hero and has helped me since then after he investigated the hell I went through over and over with watershed.   

  • Member since 2018 · 11 posts · 1 vote
    7y

    Lee, I’ve also been told to try to call the title company as these issues from previous owners huge water bills should have title insurance.  

  • Member since 2018 · 11 posts · 1 vote
    7y

    Yes Lee count me in for a  class action suit as I can’t sell my property until I pay my prior tenants $3500 bill   I’m sure my tenant appreciated getting years of free  my expense, thanks City for helping me get screwed  me over and letting tenants get away with this scam   Turn off their water if they don’t pay their own bill,  don’t let it slide for years and years and then force landlords to pay it    

    At least Give us alerts ! So many unsuspecting landlords getting hurt and City continues to enable this to happen  

    Landlords are the ones making this city beautiful, renovating houses planting trees and paying taxes look out for us!  

    Michaela  I spoke with you a few years ago, I hope your still not being scammed. 

    Pablo ask for Jeremy Paterson at city of Atlanta watershed he was honest and helpful but he admitted he was working against a broken system and for the people so I hope he’s still there. He understood the racket. 

    Yes I believe City is illegally scamming us all so they can get out of debt.  

  • Investor · Atlanta, GA · Member since 2013 · 3k+ posts · 3k+ votes
    7y

    @Angie McLean 

    yes, we spoke last year. They reimbursed me 2300 for one of my claims, but ignoring the other, where they made me pay 4800 to sell a house. When I moved back into that house (after having had tenants and squatters for years) they started my bill at $ 4800 the day I had the water turned on. I need to file small claims court but have been dragging my feet. 

  • Member since 2018 · 11 posts · 1 vote
    7y

    I understand the dragging of feet. 

    I know I have to deal with my tenants $3500 water bill before I can sell my house in west end.  I will not let them keep my hard earned profit but I can only deal with so much dispute at a time.  I’ve already got a plumbing bill I turned in for a “ leak” that he “ fixed” hoping they adjust my other houses water bill that was over $3000.   No way the house had a leak that would consume that much water but it’s theur game so I just continue to dispute and hope someone that cares gets my request and adjusts the balance.  

    There’s another man named Lee who is in these posts asking if anyone wants to join a class action suit. I had serious thoughts of making 50 posters that said “ is your water bill unjustifiably over $2000?  

    If so call me.

     I bet I’d get 100s of calls.  

  • Investor · Atlanta, GA · Member since 2013 · 3k+ posts · 3k+ votes
    7y

    I think, and that's what the city might be banking on, the amounts are too small to have an attorney involved on a contingency. And if we pay, our costs might be higher than what we already paid. So, I'm not sure anything but small claims court is feasible. 

  • Member since 2019 · 2 posts · 0 votes
    6y

    @Michaela G.

    I am willing to build up a list of people who are interested in participating in a class action law suit.

    Please contact me.

    My story:

    I bought a house and inherited a tenant. After a couple of years he stopped paying rent and I had to evict him. When I turned the water service in my name, I discovered that he owes a huge water bill. Watershed told me that it will stick to the property and eventually turn into a lien.

    I argued that I was not aware that he was not paying and actually when I inquired about the water bill in the past they (watershed) refused to give me any information because i couldn’t provide the tenant’s SSN.

    I believe we have enough elements to start a class action suit. I have friends who are attorneys who can help with this.

  • Member since 2019 · 2 posts · 0 votes
    6y

    @Michaela G.

    Count me in

  • Lender · USA · Member since 2015 · 212 posts · 53 votes
    6y

    If you raise more than 50 people - count me in

  • Member since 2018 · 11 posts · 1 vote
    6y

    YES on a class action lawsuit.
     I have 6 rentals.  I’m at my wits end with stress on the water company destroying my investing career which supports my family.  
    I have a 6 bedroom house for my 6 family members in Suwanee and my water bill is fair, about $125 a month.  
    Right now on my rentals in west end and south west atlanta I have a water bills over $2600 on 4 of my 6 rentals.  
    My monthly water bills range from $180 to $260 per house, some houses only have 2 people in house.    if a rental has a small toilet leak or a faucet leak and the tenant first tell me or if the tenant doesn’t even realize there’s a leak, my bill will sky rocket to $1000 in one month.  
     Another one  of my rentals across the street has more people in the house and water bill is only $120, so some houses are getting gouged and some aren’t.  How can 4 of my 6 houses have a water bill so high?  If I have 4 of 6, I do believe that may be the ratio of houses that are getting these huge bills and this is certainly a crisis for unsuspecting landlords. 
    I pay $200 or $300 per month for water in each of my rentals on bank auto pay and it’s not enough.  I will raise a $1200 credit on a property, then I will get a $1600 monthly bill and lose my credit and within a few months rack up a $4000 debt.  Then I have to scramble to figure out how to get watershed to give me a credit.  
    In my leases, I am forced to include water with rent and the most I can charge tenants is $125 a month for water, so I lose at least $125 per house as bills are mostly around $250.  I can’t raise rents around $800 or $900 per month as these are lower income houses so at times my water bill takes a huge chunk of my profit. 

     If I leave the water bills with tenants to put in their name,  the bill will sky rocket to $3000 plus as they tend to not pay.  I’ve had to pay tenants bills exceeding $3000 on 2 occasions so far.  
    I know a single mom of 2 young kids who is renting from another landlord that I don’t know.  
    As her boyfriend had not worked in over a year, she is over $3000 behind on her water bill. She wants to pay the water bill but can barely pay her rent and she’s on food stamps. She learned that regardless of threatening letters, the city won’t turn off her water,  so she just lives with not paying it.  
    When she moves out, her landlord will certainly get stuck with a $4000 plus bill.   The water bills are just too damn high for lower income tenants.  I seriously thought of buying 50 large neon posters and writing And then posting all over south atlanta and downtown areas :  

    “ if your water bill is over $200 a month please call me “. 

    What to do?  I can’t sell my investments yet, they are off Hollywood and Johnson where the new bell park is being built.  If I sell now I will lose money. The houses are longer term investments waiting for those hoods to appreciate like west end has, and grant park and Reynolds town did.  

  • Lender · USA · Member since 2015 · 212 posts · 53 votes
    6y

    2 different lawyers told me that after 7 years a debt is not collectable. So when you sell a house of debt was generated from a water bill closed more than 7 years back you should be ok. Based on it, I decided that I will keep my properties long enough to have gentrification happen, have more wealthy tenants move in that pay their bills, wait 7 more years and then sell. I got long term financing 30years fixed with lending one. It stinks as basically I can’t sell these homes for 20 years or the water bills will kill it. I believe it is a question of enforcing turning off utilities if tenant does not pay. You can call the city and ask for the balance on your tenant water bill and you can ask city to shut it off BUT then tenant leaves and you are stuck as it is NOT easy to get it back turned on once they force shut it. I also had a situation where they did shut off the tenant water and the tenant did some type of work to illegally hook up . It ended up still on property owner. A decent solution has been when the city had an “amnesty “ month couple of years ago. Where for one month they gave employees authority to write off balances in exchange of small immediate payments. In my opinion it’s best to have water bill in Tenants names and wait 20 years to sell - or if we have enough people do a classaction lawsuit. However, I believe that amnesty month came from a class action lawsuit.... and we are now back at square one 2 years later . Investing in the city of Atlanta has been very good for long term appreciation, but it comes with a lot of headaches ... we  are squeezed between tough tenants and tough city . 

    I also have a friend that won because he got a bill that was too high ... he got a $64,000 bill ... it was high enough to call the news and they got it completely removed before the news started their report. I told him it was better a $64,000 bill than a $6,400

  • Rental Property Investor · Atlanta · Member since 2020 · 1 post · 0 votes
    6y

    I’m in. Something has to be done. I have the same problem as Angie. Its absolutely ridiculous. Atlanta Watershed needs to be held accountable. 

  • Investor · Avondale Estates, GA · Member since 2019 · 7 posts · 0 votes
    6y

    There is a Facebook group full of people in the same situation in Dekalb county. Many people have had success disputing their bills based on past consumption and they’ve gotten traction with local media. It’s a great resource for support and advice. https://www.facebook.com/group...

  • Member since 2018 · 11 posts · 1 vote
    6y

    Well 2 years later.  I own 7 properties in city of Atlanta. 3 are duplexes.   I’ve never Had a time when I did NOT had a dispute with high water bills.  I dispute one house and 2 more high bills show up.  Right now I am disputing a $2000 water bill and a $4700 water bill. I’ve had some disputes adjusted fairly. I’ve lost 3 disputes and had to pay $3400 for a tenants bill so the new tenant could move in, city reduced my bill $4200 bill to $3400 ( took off $800) if I agreed to pay $300 on a water bill from the house from 10 years prior to my owning the house.  
    so I paid $3400 plus $300.  I actually cried as they ran my credit card with the injustice of it.   They said they needed to get old accounts paid up  to clean up their books.  
    mine if my employees can’t pay her water bill for 2-3 years now   She can’t work full time as she has 2 hound babies and no support from the dad.  She’s getting ready to move, her water bill is close to $4000, she will not be able to pay it.  As I understand her situation it would of been much better overall for water to threaten to turn off her water and just do it, like electric died, and I’m sure she would of found a way to pay.   Now her unsuspecting landlord will get an unpleasant surprise in a month once new tenancy move in and city won’t let them turn on water until landlord pays the balance   Landlord was not notified, landlord could not of found out even if they called as city won’t give out private information.  
    however City told my tenant my water bill information when he went down there!  I learned to put water in my name and charge tenants $125 a month in the lease which covers 4-6 people living in a house. My tenant only will pay me $50 a month, he says that’s all her owes regardless if he signed a lease that says $125, basically I’m getting screwed $75 a month I have to pay for his water   Still better than the full amount!  So he got Les to watershed and they divulge all my water bills to him, that’s Illegal!   Furthermore he finds out that the bills for his house is the $2000 bill that I’m disputing as several plumbers says there is no leak!!  Now my tenant insists he should only pay $50 a month “ because the house obviously has a leak.”  He even went further to not pay his $125 a month by saying “ if there is a huge leak and city charging you $2000, then there’s mold too and that’s unhealthy.”  
    I know blackmail when I hear it   
    so watershed Gabe my tenant my personal information and there’s nothing I can do because I can’t prove it   

    City of Atlanta watershed issues has been the single most stressful contributor to being an investor.  So much that I stopped investing in houses in Atlanta, I’ve bought one in ha kissy Florida instead.  I just got so frustrated with the constant high bills and disputes and playing the games required.  
    jeez!!  

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