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If tenant doesnt pay water bill Landlord has to
I live in southern Ontario in Canada, and here if a tenant doesnt pay the water bill it goes onto the landlords taxes. This is obviously a gross injustice, but what can a landlord do to protect themselves from a big potential problem if for some reason a tenant uses a ridiculous amount of water and then does not pay the water bill? I am a small landlord and am wondering as well if getting rid of one or 2 water meters might be the only thing I could do, and then have the water account in my name so I can track usage?
If that's your worry, then you would have to rent with utilities included. I do this on my duplex, which has a legal basement suite. Instead of having the tenants split the costs each month, it is just easier for me to do it all and charge rent accordingly.
I'm in AB, so it's a bit different. It seems strange that the water bill will get added to the taxes. In my other rental, which is a single family, the tenant will get utilities in their name, and the utility provider will go after them for unpaid fees. The only time the landlord is on the hook is if the services are not connected to any name. In that case, the utility company will look for the name registered on the title.
Thanks Stevo, I appreciate the reply and you could do it that way however, it doesnt really solve the problem of a potential runaway water bill from say a toilet left running while the tenant is on vacation somewhere or some other problem where water is left on or leaking. I have heard a few stories in the news over the years where the bill is in the tens of thousands or worse. Thats what scares me.
Quote from @Jay Smith:
Thanks Stevo, I appreciate the reply and you could do it that way however, it doesnt really solve the problem of a potential runaway water bill from say a toilet left running while the tenant is on vacation somewhere or some other problem where water is left on or leaking. I have heard a few stories in the news over the years where the bill is in the tens of thousands or worse. Thats what scares me.
There's now way for you to mitigate that risk. The best case would be for them to have utilities in their name if that's your worry.
It depends on where you live, but the places I have, the water bill is tied to the house vs electric or cable which is tied to the tenant-so if the tenant doesn't pay the electric bill, they have problems when they move and try to get it at their next place.
What I do for my places in BC is pay the water bill directly and then send my tenants the bill. They add that amount onto next month's rent. Works well as the water is billed every 3 months.
If you do want them to get it in their name, have them send you copies of the bill every few months showing that it has been paid....or you can include water as part of the rent, but when I tried that the water bill went up.
Coming soon. All utilities will be the owners problem. Utilities (WA state) have figured out its easier to squeeze the owner than chase down a deadbeat.
I would guess in the near future you'll start to see meters that automatically shut-off after excessive use. Or even better, pre pay with your visa card for 20 minutes worth. Like they do in England. Pre charge your tenant and watch the meter.
Or even better, have a meter that puts your water flow down to a small stream if you use excessive water, until the bill gets paid. That could likely be done and would solve the problem. Good point Henry. Now, if I just had time to go invent one of these!