Tenant didn't pay water bill, now they're coming after me

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Tenant didn't pay water bill, now they're coming after me

Brad Thomas
Investor · Gansevoort, NY · Member since 2015 · 18 posts · 16 votes

Hi all. General legal question. I have a rental unit in an area that is served by a private water & sewage company. The lease called for the tenant to pay these charges. The account was set up in her name, but she is now gone (she gave proper notice and we parted ways peacefully) and I just received a letter from the company saying she never paid her bill (for over a year!) and that I have to pay it (I am on record as the owner/landlord). Does the company have a right to demand payment from me? Didn't they establish a contractual relationship with the tenant? Do they have a right to put a lien on my property if I don't pay? I will, of course, contact the former tenant and try to get her to pay (she might), but I'm just curious. I am in New York state. 

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Eddie T.
Rental Property Investor · NY · Member since 2013 · 844 posts · 350 votes
9y
Brad Thomas yes they can place a lien on your property for non payment of the water bill. I never allow my tenants to pay the bill directly. I receive the bill then email the tenant with the amount due and give them 30 days to pay.
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  • Aaron Abraham
    Investor · Inver Grove Heights, MN · Member since 2016 · 29 posts · 20 votes
    9y

    In my market it is required by law that landlords are responsible for water and trash service.  Is that not the case in New York?

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  • Eddie T.
    Rental Property Investor · NY · Member since 2013 · 844 posts · 350 votes
    9y
    Brad Thomas yes they can place a lien on your property for non payment of the water bill. I never allow my tenants to pay the bill directly. I receive the bill then email the tenant with the amount due and give them 30 days to pay.
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  • Russell BrazilBusiness Member
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    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    9y

    In most of the country water bills can attatch to the property. You will have to pay it, then you can sue the tenant in small claims court

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  • Jim Shepard
    Investor · Edwardsville, IL · Member since 2015 · 432 posts · 481 votes
    9y
    I got burned on this once as well. Fortunately I hadn't sent the tenant their security check back yet. I subtracted the water bill from it. I now tell the tenant that I need a receipt showing the bill is paid in full. I also check with the water department to verify. Yes, they can attach a lien on your property and also not provide water to your next tenant.
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  • Elena Jobson
    Escrow Officer · Denver, CO · Member since 2016 · 64 posts · 27 votes
    9y
    If New York is the same as Colorado the water bill is tied to the property so yes they can lien for nonpayment. It differs by state but It sounds like that's the case. You should go after your tenant but ultimately it is your responsibility.
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  • Christa Centolella
    Lender · Auburn, NY · Member since 2016 · 4 posts · 1 vote
    9y

    In NY, The law indicates that the property owner is responsible for outstanding utility bills for water and trash. But the law also offers the owners relief via bringing an action in Civil/City Court to obtain a judgment against tenants or former tenants for their outstanding utility bills. Then you can enforce those judgments yourself or hire a lawyer or judgment enforcer.

    Owners of properties are almost always responsible regardless of your tenant agreements, I found a great article that may help you understand your situation and what you may want to do in your situation. Unfortunately you will have to pay or the city will put a lien on the property. In the future you may want to keep it in your name and put it in the lease as "other rent" in addition to the regular rent..that way you won't have such a huge problem in the end and you can get rid of them sooner  if they don't pay the utilities rent portion. it is legal in NY to do so. 

    https://www.rentmanager.com/the-water-bill-landlords-or-tenants-responsibility/

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  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    9y

    that law SUCKS  I got hit with that in Detroit.. out our way   its the tenant .. if they don't pay it does NOT attach to the property..

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  • Brad Thomas
    OP
    Investor · Gansevoort, NY · Member since 2015 · 18 posts · 16 votes
    9y

    Thanks all. The issue is much clearer to me now (great article @Christa Centolella). I should have thought to call the water/sewer company before the tenant moved out. But I can't believe the company let her go without paying for more than a year! Had they contacted me earlier this could have been resolved in a much simpler way. Lesson learned.

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  • Randi Plevy
    Investor · New York City, NY · Member since 2014 · 141 posts · 65 votes
    9y

    If water/sewer is private, and not municipal or quasi-municipal, I don't believe it can go after you or your property.  Remember that just because they say they can doesn't make it so.  I recently had a similar experience where an electric company sought to get a judgment against me, the property owner, instead of the tenant with whom it contracted.  I had to file a dispute, but they let it go.  

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  • Jack B.
    Rental Property Investor · Seattle, WA · Member since 2014 · 1k+ posts · 1k+ votes
    9y

    It depends on the city in my area. At two of my rentals, the bills are held to my property if they don't pay. In fact they can't establish service unless I sign a release to the utility that says I will pay or they will put a lien on my house.

    At others, the utilities follow the deadbeat losers that don't pay.

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  • Jack B.
    Rental Property Investor · Seattle, WA · Member since 2014 · 1k+ posts · 1k+ votes
    9y

    I'm curious, do you not have a deposit for this? I've kept almost 2K in deposits this year alone on account of deadbeat tenants who didn't pay their bills or caused damage.

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