Cleveland Water Bill - Unlimited Risk Potential?

Question

I've been eyeing different markets, Cleveland among them.  According to the Holton-Wise Property Group FAQ, they don't charge tenants for water due to the city's policy (specifically referring to this thread: https://www.biggerpockets.com/forums/731/topics/741251-how-to-handle-water-bill).

I've seen others say they either bill-back the tenants for water or have a clause in their lease which states that renters pay anything above $X and that an eviction can occur for nonpayment.

My question is as follows: in both of the above scenarios, the property owner is always accountable for the bill.  What prevents a tenant from just letting the bathtub run continuously for a month, perhaps as a way of disapproving of an eviction?

Thanks!

Brian Bilquist · Answer

Thank you both for the replies.  Sounds like it comes down to the fundamentals: good screening and decent areas.  I'll keep both in mind as I continue my search.

Federico Gutierrez · Answer

There is always going to be a risk with any investments. BUT tenants usually punch holes in the walls or smash a window before they run the tub for a month (doesn't cross their mind)You can always monitor water usage online, daily and by the hour.

Bob Collett · Answer

Brian

Nothing prevents tenant from running the water, kicking holes in walls and door, or other vandalism.

However, these things seldom happen as retribution.

More likely, a tenant fills up an inflatable pool every other day in the summer, or fails to report that the kitchen drain is leaking, or that the boyfriend beats her up every weekend and busting up the place, or that tenant lets a dog do his business on the carpet, or overflows the tub because they fell asleep.

While a good tenant will agree to a fair water policy; the court will typically throw out the policy in an eviction.

Keep in mind that you can get a leak notification from water department via “clear-reads” through the mycleveland water website.

Usually bad tenants are multi-dimensional... they tend to follow a pattern... low credit score, extension criminal background hits such as driving with suspended license, expired plates, drugs, panning the rent late, refusing to pay the water, violating trash pickup guidelines, police calls by the neighbors, no-show for service calls, removing smoke retractor batteries for the kids toys, not replacing burned out lightbulbs, not taking care of the yard (in a single family”, busting blinds and screens, etc.

Good tenants are not going to do everything else right, then decide to run the water for a month.

It all starts with tenant screening. To get the best tenants, buy in good neighborhoods and make sure your house is well maintained and clean going in.

Bob