Paying Tenant Doesn't Live In Property
Is it bad for a house to sit vacant with no power?
Concern: Tenant doesn't live in property, turned off power to house, and lives with his girl friend. House is located in Fayetteville, NC where it doesn't get too cold. The tenant still pays rent for a house that is located in the best school district.
Should I be concerned?
Thanks in advance for your help.
#5 Multi-Family and Apartment Investing Contributor
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- Shelton, WA
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#5 Multi-Family and Apartment Investing Contributor
- Investor
- Shelton, WA
If it gets below freezing you need power on. Is the refrigerator/freezer empty and door open? I would send a 24 hour notice and inspect. Maybe trial period with the girlfriend? I would not be too concerned if he is paying rent and responding.
My quick googling says it doesn't get below freezing much in Fayetteville. I don't see any reason for concern here.
If anything, this is a positive. You have a tenant who is paying rent, but who is doing no wear and tear on your property.
Call him and discuss your concern about the electricity being off regarding heat in the winter.
Better he gets a heads up on in now than in Dec 31 during a snow storm.
If it needs to be on, simply ask him to reestablish service (and you double check that it's been done).
Good Luck!
#3 Managing Your Property Contributor
Seems odd. I'd do an inspection. Who is taking care of the yard and is the house properly secured (eg what happens if a pipe bursts)?
Quote from @Esteban Carrera:
Is it bad for a house to sit vacant with no power?
Concern: Tenant doesn't live in property, turned off power to house, and lives with his girl friend. House is located in Fayetteville, NC where it doesn't get too cold. The tenant still pays rent for a house that is located in the best school district.
Should I be concerned?
Thanks in advance for your help.
The house can probably handle not having elec on, unless you have some appliances that require it, such as humidifirers or security system. I'd be more concerned about the house appearing vacant. You should at least have lights cycling with timers. I would factually let the tenant know that he would be responsible should squatters come in and trash the place, not to mention costs of eviction. The house is under his care not yours. At least that's what your lease should say. But try to find out his intentions first before scaring the crap out of him.
@Esteban Carrera No need to be concerned about pipes freezing now in the summer but I would reach out to him and let him know your concern for the winter months coming up. Also, see what is the situation with him and his girlfriend. He may be trying out living with her before he actually lets his place of shelter go for good. You know women are famous for kicking their man out the house just because they get mad at them.
@Esteban Carrera a good lease will usually require that the property is constantly connected to utilities, with interior temps constantly maintained within a certain range. If your lease has these terms, then turning off power would be a lease violation, and would potentially justify retaining the security deposit.
Yes, pipes could freeze in the winter, but there are also other problems that could occur with no power.
Most areas of NC are highly humid, and not having AC and consistent air circulation in the summer could cause issues with humidity buildup inside the house, which could produce mold, rust, peeling paint, and/or wood rot. In general, most materials degrade more quickly with more extreme temperatures (either hot or cold), and they degrade more quickly when humidity is high or when there is a lot of water in the environment...by not having power and AC/ air circulation, you're subjecting the house to more extreme temperature swings, and more humidity; both of which can cause problems.
Also, as others mentioned, if the house appears vacant with no lights on, it will become a target for burglars, vandals, squatters, etc.
Was the refrigerator / freezer completely emptied and cleaned before power was turned off? (Hopefully it was, otherwise get ready for a stinky mess!).
Having the house sit vacant could also expose you to other risks--for instance, if a plumbing leak begins, there won't be anybody there to spot it and take quick action, and a prolonged leak could cause serious damage. ...on the other hand, there are some advantages to having the house be vacant (less tenant-caused wear and tear, less liability stemming from the tenant's presence)...
Some houses have critical safety systems that require power (for instance, sump pumps, hard-wired smoke detectors, security lighting, etc.)--so, you'll want to consider whether your house has any of these types of items...if there's a big storm that dumps a lot of rain, and the sump pump won't function because there's no power, that could cause a flood and major expenses...
Personally, I would also be concerned about the competence of a tenant who turns off the power to your property without first asking your permission. A responsible, considerate tenant would have at least wondered about whether cutting power could cause problems, which would have led them to first ask your permission before turning off power.
Good luck out there!
Quote from @Esteban Carrera:
Property continues to degrade, even when unoccupied. Gaskets can wear out. Dishwasher seals can go bad if left dry for too long. Who is watching the house if a problem develops and you get a leak? Break-in? Lawn care?
I would rather find a new renter.
Your insurance policy most likely requires the unit to be inhabited. Insurance for vacant properties is usually quite a bit more expensive as there is a lot of added liability for vacant properties. They could and probably would deny claims over this.
As other have mentioned, things like gaskets and valves are designed to be used and not using them can cause them to crack or malfunction. Houses should also be ventilated. Lack of ventilation can encourage mold growth and lead to reduced lifespan of items.
I'd call the tenant and find out what is going on. It sounds like a trial move-in with the girlfriend. Perhaps his intention is for her to move in with him if all goes well and that is why he has not tried to terminate the lease.
Yes because most insurance polices have a vacancy clause that suspends coverage when property is vacant for 60 days.
I'd do an inspection (with proper notice) and if they shut the power off themselves, just confirm that via some type of provable method (email them and ask..."by the way I noticed the power was off since XXX date, was that intentional? I wanted to make sure there wasn't an issue with the provider".
Then keep that discussion so it can't come back to you later.