Is it normal for a landlord to have the tenant's pay for sewer, water, and trash?
I just purchased a rental property in Fishers, Indiana. Is it normal to have the tenants pay for sewer, water, and trash? In Hamilton county all of these items are paid for separately.
My property manager is telling me that we can have the tenant's pay for these items by putting that into the lease. I'm worried about what happens if the tenant doesn't pay. I know with items such as electric, phone, cable, etc the tenant is responsible and I won't be affected by whether or not they pay their bills. However with sewer, water, and trash I believe that the homeowner is liable if those bills are not paid. I would appreciate any advice. Thanks in advance.
My tenants pay all and it saves me time and I don't have to worry about the bills. Less paperwork for me. The city actually sends me a copy of their water bill every month so I know that they are up on their bill. If they don't pay I have a security deposit.
@Shawn Holsapple Is right... you are talking about Fishers here.. If the PM is even slightly competent at screening tenant then you will be absolutely fine. And if its one of the PM's that I know work that area then I am even more confident. Slumlording and half assed property management doesn't go over well in Hamilton County.
However, I'm pretty sure that in Hamilton County water, sewer and trash are things that you as the property owner, at the end of the day, ARE responsible to pay. If you are concerned you can call the h20 / sewer / trash company and asked to be notified if they don't pay. I'm sure they would take note and let you know rather than try to collect by placing a lien on the property. If they don't pay and you have it stipulated in your lease (most leases have clauses about the general up keep of the property too) then I would think the judge would agree that you have the right to evict. - VERY unlikely tho...
If I had a rental in Fishers I would pretty much require tenants to have a 700+ credit score. Thats just me tho :)
Good luck @Raj S.
All landlords and owners should pay their own water, sewer, and trash bills. Tenants are Not part owners and, this should not be the tenants bill. Think back to 2020 when the pandemic and, all we saw was trash all over the place of apartment lots. This was ONLY due to landlords not paying that bill which shouldn't have Never been allowed to be put in the tenants lease, for now going on over 10 years now.
Landlords and owners of these properties know that they are responsible for the water, sewer and trash because, they know they must by law comply to the rules. Now, landlords and property owners also know that since these bills has to be paid and, not against the law yet, to put these charges in the tenants lease. UNTIL TENANTS put forth their rebuttals and stop paying the landlords and owners water, sewer, and trash bill and, then there Will be a lien put on their property, that tenants are not part owners. These landlords and property owners will continue to just sit back and collect rent and, pay nothing on their property, this needs to stop Today!
Quote from @Shawn Holsapple:
I typically have the tenant pay for everything on a SFH. Even lower end rentals pay for everything.
Yes, you could just add it into the lease payment as well.
I doubt you will have any issues with a tenant not paying in Fishers, however...