Similar to lender's fees, you'll pay this out of pocket, and get reimbursed at or after closing.

(A reimbursable billing)  If they didn't pay, I deducted the water bill from their rent, which made their rent late.Now...this is stipulated in the lease agreement, that any rent received is applied to any outstanding bills they have with me. 

Any amounts pulled out and/or reimbursed to the investor/taxpayer will create taxable boot.

Or the plumber say OK if you pay me later it will cost $750.I am sure you the landlord footing the bill at that moment, and then asking the custodian to "reimburse" yourself later is a big no no.Is this a valid concern that a custodial oversight will have these issues?

However, if you've already paid licensed contractors to come out and they've said the a/c & dryer are functioning properly, then I would let him know that if you send another contractor out for the same complaint and they have the same response, he will be responsible for reimbursement for the service call.  

Because if you submit a different variation you will not be immediately reimbursed.

If the tenant wasn't walking away during this time of the year when I knew it wouldn't be as difficult to find a new tenant, then I could be more willing to avoid going to court and let them walk with just the loss of their security deposit as reimbursement. 

I wrote back and said I will reimburse the tenant for a $15 bottle of home pest control that they spray themselves (should last through several applications), or they can pay for their own pest service.  

The tenants pay above base rent with CAM to reimburse.

He has no hope for the other deadbeat tenant ever reimbursing him.