What utilities do your tenants pay?

Question

Brad Schaeppi · Answer

My two cents:

1)  @Tim Swierczek is correct on Minnesota landlord law, landlords are not required to pay a specific utility per se.  Tim is also correct about the ticking time bomb if a tenant's name is on the water bill.  If you go direct to tenant name on water, obtain additional security deposit to cover non-paid water (it can run hundreds to thousands of dollars).

2) BE AWARE of the single meter statute 504B.215 and tenant advocate attorneys.  I have defended a landlord against a tenant rent escrow (duplex tenant) seeking a large settlement due to no access a garage, but allegedly paying for electric utilities for the garage.  The issue would have nominal in cost to address had the landlord also not had attorney costs language in the lease for the landlord (that is another issue).

Real quick, duplex type properties can quickly become utility liabilities if not handled the correct way (ex:  2 meters but only 1 washer and dryer).  The statute also distinguishes between "utilities in rent" vs. "utilities separate from rent."  If you have fact or property specific questions, DM me.

Pavel U. · Answer

I don’t know about St Paul, but in Minneapolis landlord is responsible for water/garbage bill in a multi family if there’s only one water line. Most duplexes have one.  There are exceptions - if a duplex has two water meters, then each unit (tenants) is responsible for their own and landlord is responsible for sewer/storm fees.

Heating is same - if there are two furnaces or two boilers - each unit is responsible for their own. If there’s one boiler - you can split it between two units but need to provide history of bills for the past 12 months.

In short - in most duplexes - tenants pay their own gas, electric, internet/cable. Landlord pays for water/trash, snow removal, lawn care.

John Woodrich · Answer

@Tom Hertel if you want to talk to an expert contact @Brad Schaeppi

Brad - I will be contacting you soon about updating my leases and correctly setting up metering on a renovation we are completing.  Full gut job and conversion to a duplex.  Trenched larger service to the house, installed a two meter socket box for 2 panels and want your opinion on correctly sub-metering water/sewer before the re-plumb.

Oscar Brooks · Answer

I either personally maintain or pay for anything that is shared because if there isn't a direct line to a responsible party it is always NMP (not my problem) in the tenant's mind and the small issue will eventually be a big problem. Snow has melted and refroze and is 6" thick ice, grass isn't cut and the city issues a citation, garbage bill not paid and now you have accumulation of trash which can attract rodents or upset neighbors. So water, garbage, lawn, snow just as @Pavel Ushakov mentioned are on me. The one small exception I have is that in my lease I set the expectation that an assigned parking spot (outdoor, uncovered, unpaved) is the tenant's responsibility to maintain so they should shovel, rake, and trim plants.

Tom Hertel · Answer

Does the market really dictate paying trash and water? A lot of places I see have landlords paying water, trash, garbage, and gas (for heating). That’s seems like a lot of unnecessary expenses, but maybe that’s just me?

Tim Swierczek · Answer

@Tom Hertel  The landlord is not required to keep any in unit utilities. Colored is required to pay all common area utilities unless the usage is below the de minimus levels.

Eric Earll · Answer

We rent out a lake home on Lake Mille Lacs in Garrison, MN. The tenant screened well but it’s been a total nightmare since move in. There is always one issue after another, can’t pay rent, sewer going unpaid, etc.

Today I received a letter in the mail from the local garbage collection company. They stated that in Spring of 2018, service was established  by the tenant, however no payment was never received for service. The company states there is an outstanding bill of $601 and they have received a judgment in their favor against the tenants. The tenants have not responded to this judgment. And the letter states  that the company will be seeking further legal action against the property through their attorney. They also  quote “legal costs amounting to another $200.“

It is my understanding, that because these are independent services not provided by the city or county, alien cannot be filed against our property. Is that correct? Any help you can provide is much appreciated thank you!

Bjorik Mutize · Answer

Yea, only difference between my SFR and Duplex is lawn/snow maintenance. Everything else is fairly linear with me paying only water/sewage/garbage.

David Barnett · Answer

I have one of my tenants take care of snow and lawn care with a rent break (usually $50 a month).  That is a much more economical way for me to have those items taken care of.  On the other utilities, if I can have the tenants pay for it, I try to farm it out to them (as much as I can).

What utilities do your tenants pay?

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