Investor · Hendersonville, TN · Member since 2008 · 33 posts · 0 votes
I met a guy today that said he had a couple duplexes and rented them out. He says he keeps the utilities in his name and just charges extra rent to cover for the utilities. He then said if someone is late on their rent and after serving the pay or quit notice, he turns the utilities off. Is this legal? Sounds like a good idea but I wonder if it’s legal.
Thanks,
Richard from Tennessee
Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
18y
I think that's illegal just about anywhere. Almost certain to raise the hackles of a judge at the eviction hearing when the tenant says "he cut off the gas and electric". Talk about setting yourself up for months and months of free rent!
Raleigh, NC · Member since 2008 · 91 posts · 0 votes
18y
just from a logical standpoint it is stupid. During winter time if you cut off the heat and your water pipes burst? A late rent payments seems like a small price to pay in comparison
Real Estate Investor · OH · Member since 2008 · 1k+ posts · 86 votes
18y
Originally posted by "EricFoster":
Another idea...
What about lighting the house on fire?
That way, the tenants get out, and you get to collect insurance money to offset the rent they didn’t pay!
(THIS IS A JOKE! Don’t do this either!)
I perfer sneaking into their bedroom at night, hog tieing them and dropping them off at my mother inlaws house. They'd pay after spending a few hours with her.
Real Estate Consultant · Somerville, MA · Member since 2008 · 339 posts · 52 votes
18y
These are awesomely funny responses.
That landlord may also run into trouble using his current model if he's overcharging those utilities. For example, if the ACTUAL electric expense is $37 and he's charging tenants +$50 for electric, that's a no-no according to the utility companies unless he's a registered utility reseller. Most landlords who offer utilities with rent never disclose how much of the rent is specifically for those utilities and therefore, are basically covered. Potentially you could run into trouble if the units are individually metered but the rents aren't fluctuating with monthly utility expenses. I've never seen it happen though.
Many utility companies have a "Landlord Agreement" for properties so that once a tenant cuts off service it automatically sustains under the Landlord's name so you don't have an interruption of service. You would do this to make sure the electricity/water/etc stay on if your property stays vacant or while you're showing a vacant property. I've found that handy.
we use "revert to landlord" program with the local utility company. It is so hard to get the turn off coordinated so this works in the landlord's favor. That way there's always hot water for cleaning.