Tenant failed to transfer utilities

[Mak K.]

I have a tenant who moved in. She is running low on funds all of sudden and has not transferred to gas and water connection. The gas connection is under my name .  Water connection account was never opened due to recent sale.  But of course water is on since water authority has not turned the valve off.

Anyways, what can be done? The reason she is delaying is because she has to pay deposits to utilities and she does not have funds.

It’s already 15 days and I think now she is taking advantage and being bossy to as if she deserves a special treatment. We also did help her out with security deposit payment plan.  

So what can be done to force her to change the utilities in her name?

[Greg Scott]

#1 What does your lease say?  A good lease would specify the remedies.  Often there is a fine for not transferring utilities.

#2 When she pays rent next month the first monies go to pay the back utilities and fines.  Whatever is left over goes towards rent.  If you don't get 100% of rent by the 3rd (I believe that is the date in Texas) you start down the eviction process, first with a letter demanding payment and then 10 days later by filing for a court date.

[Terrell Garren]

Someone made a poor tenant selection. M2M rental agreements all day long. Best thing I've learned in 14 years. 

[Jill F.]

You are likely about to lose money and have one of those expensive "learning experiences" . What does your lease say regarding utilities? Is the tenant m2m or did you give her a term lease? If she has a term lease, check your local laws but here (and most places) you can put a 30-day notice to cure on her door then if she fails to cure the problem you can file on her for breaching her lease agreement.

If she is m2m just non-renew her lease since she's being a *sshole

[V.G Jason]

You enabled her by allowing this. Now it's on you.

[Theresa Harris]

Hindsight is great.  You should have verified that both were in her name before you gave her the keys.  I agree with Greg-with her next rent, pay the utilities that you got the bill for from that and tell her she is now short on rent and give her notice.

[Jill Addison]

@Mak K. I have a somewhat similar situation where I actually split one water meter into two water meters at a duplex and asked the tenants to put the water bills in their names. They did not do it, so finally I realized my only remedy was just to turn the water off. Once the water was off they went in and put it in their names. That's a quick and easy way to solve it it seems. Hopefully that's not the wrong thing to do, but that's what's worked for me so far.

[Eliott Elias]

Turning off the utilities will put you in a tough situation, it may be violating some fair housing laws. Get an attorney, or property manager involved. 

[Nathan Gesner]

Quote from @Mak K.:

Give her notice to pay you what is owed and show proof of utility transfer within 14 days or she has to move out. If she fails to pay or move out, start the eviction process.

You are making some major mistakes and this is going to get costly if you do not take action quickly.

1. You should never allow the Tenant to move in until they've met all the prerequisites. Do not trust that they will set up utilities. You must have proof or you don't hand them the keys.

2. You should never accept a payment plan for a deposit. That's a sign they are tight on money and can't afford your rental. The deposit is your only leverage to hold the Tenant accountable. When you approve them for the rental, they should pay the deposit in full with certified funds (no personal checks) within 24 hours. Don't wait two weeks until it's time to move in.

3. First month's rent should also be paid in full with certified funds, no personal checks.

Start looking for an attorney. Let the Tenant know that they need to straighten this out quickly or you'll start the eviction.

[Bruce Woodruff]

@Mak K. You probably already know what you need to do.....start the process to get rid of a tenant that you shouldn't have allowed in the first place. You received good advice from the others ^^^, but will you follow it?

[Bob Stevens]

Quote from @Mak K.:

I have a tenant who moved in. She is running low on funds all of sudden and has not transferred to gas and water connection. The gas connection is under my name .  Water connection account was never opened due to recent sale.  But of course water is on since water authority has not turned the valve off.

Anyways, what can be done? The reason she is delaying is because she has to pay deposits to utilities and she does not have funds.

It’s already 15 days and I think now she is taking advantage and being bossy to as if she deserves a special treatment. We also did help her out with security deposit payment plan.  

So what can be done to force her to change the utilities in her name?

1000% on you, NEVER let a tenant move in withot putting utilities in their name. Now you are going to be stuck with the bill. Also bad job screening, AGAIN this is what everyone should hire a PM co, Now you have to deal with this 
Good Luck 

[William Acker]

Noticed a lot of similarities regarding landlord-tenant conflict resolution between VA and TX (and tried doing my own research) but would definitely speak with an attorney or professional that has more familiarity with your state laws and ordinances. Would also greatly appreciate any corrections or insights from those more knowledgeable.

In case your tenant isn't M2M:

1. Review lease agreement for provisions regarding delinquency and remedies. If the lease clearly outlines the tenant's responsibilities and consequences, you can serve a notice of noncompliance based on the terms specified.

2. Communicate with tenant about payment of outstanding bills and prompt payment. TX doesn't require payment priority for senior debts, so you could issue noncompliance for utilities. If the tenant is unable to pay rent due to the outstanding utility bills and your lease agreement allows it, you could consider deducting the rent from their security deposit.

3. Begin tenant eviction process and document all written and verbal contact. TX is a one-party consent state so any implied offer and acceptance of terms can be considered to be equally as valid, although in writing is far better (can't stress how helpful this has been for me).

Even though this is a difficult situation for you to be in, it's infinitely better to consult with an attorney that can either help or verify your abilities and decisions to resolve this. In legal proceedings, the courts tend to give tenants a higher benefit of doubt, and will undoubtedly rule in their favor if they think in the slightest you're constructively trying to evict them--tenant has ability to walk scot-free and forego any future payments outlined in the agreement if granted.

Wishing you the best of luck with your situation.

[Chris Asbury]

@Mak K.

Congratulations, you're learning valuable lessons the hard way. I was there 2 years ago and I'll never forget it! Send notice to vacate as soon as humanly possible, this one is already lost. . . Never let anyone move in without 1st month and deposit. . These tenants will always have an excuse, cut your losses asap.

[Terrell Garren]

Sure dude. So I can pay someone $3K a month for maybe 10 hours work, overcharge me for maintenance, and pick poor tenants.  

[Bob Stevens]

Quote from @Terrell Garren:

Sure dude. So I can pay someone $3K a month for maybe 10 hours work, overcharge me for maintenance, and pick poor tenants.  

 Well it seems you have not had the proper PM. How much is it going to cost this guy? Also what about when this poster has to evict, how many 1ks will that cost? Repairs, hmm, PM is less than the avg guy as they do 100ks of a month in repairs so get discounts. If you get a new furnace, it will most likely cost you .,4 5k, we get them for 1700 done. Roof, 240 a sq, I bet you are paying much more.    PM is like have a gun, you hope you never need it, but when you do you sure are glad you have one. I have a decade of experience with 1ks of move in and outs , owning dozens and dozens and dozens of properties. My phone never rings, PM deals with it all. For me the fee is meaningless. Its all about free time, 

All the best