Tenant has been delinquent to all utilities since Jan 2023.

Los Angeles County, California
General Landlording & Rental Properties
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Tenant has been delinquent to all utilities since Jan 2023.

Jorge Liang
Member since 2022 · 13 posts · 4 votes

A little context - my tenant has been in a pissy mood since I confronted him about misusing the driveway (blocking traffic flow). He started to be late on utility payments sporadically since Jan 2023. Then, in around May-June, he stopped sending payments. He has paid rent every month. The utility bills are under my name, but I have written in the lease that he is responsible for all utilities. He has had a history of paying the utilities when I sent him the bills. To date, he owes me $2.6k and counting.

I plan on writing a professional yet stern letter to request payment next week. I also have all of the evidence and paper trail to pursue small claims. 

One question - can I charge late fees for this scenario? I have a late fee clause in the lease but not sure if it only applies to the rent.

I would appreciate any advice. TIA.

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Chris SeveneyBusiness Member
Moderator
Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
2y

@Jorge Liang

I would start eviction process and get it over with as this is where it’s headed. Regarding late fees depends on your contract and state law.

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  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    2y

    @Jorge Liang

    I would start eviction process and get it over with as this is where it’s headed. Regarding late fees depends on your contract and state law.

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  • Bob S.
    Real Estate Consultant · Cleveland · Member since 2020 · 6k+ posts · 3k+ votes
    2y
    Quote from @Jorge Liang:

    A little context - my tenant has been in a pissy mood since I confronted him about misusing the driveway (blocking traffic flow). He started to be late on utility payments sporadically since Jan 2023. Then, in around May-June, he stopped sending payments. He has paid rent every month. The utility bills are under my name, but I have written in the lease that he is responsible for all utilities. He has had a history of paying the utilities when I sent him the bills. To date, he owes me $2.6k and counting.

    I plan on writing a professional yet stern letter to request payment next week. I also have all of the evidence and paper trail to pursue small claims. 

    One question - can I charge late fees for this scenario? I have a late fee clause in the lease but not sure if it only applies to the rent.

    I would appreciate any advice. TIA.


     Ok so why are the utilities in your name, huge mistake, and now you are stuck ?  The utilizes cos do not care what your lease says. Late fees, not certain, HOWEVER YOU created this stress. NOT attacking you but making sure you never do this again.

    Good luck 

    0Reply
  • Theresa HarrisPro Member
    Member since 2019 · 15k+ posts · 11k+ votes
    2y
    Quote from @Bob S.:
    Quote from @Jorge Liang:

    A little context - my tenant has been in a pissy mood since I confronted him about misusing the driveway (blocking traffic flow). He started to be late on utility payments sporadically since Jan 2023. Then, in around May-June, he stopped sending payments. He has paid rent every month. The utility bills are under my name, but I have written in the lease that he is responsible for all utilities. He has had a history of paying the utilities when I sent him the bills. To date, he owes me $2.6k and counting.

    I plan on writing a professional yet stern letter to request payment next week. I also have all of the evidence and paper trail to pursue small claims. 

    One question - can I charge late fees for this scenario? I have a late fee clause in the lease but not sure if it only applies to the rent.

    I would appreciate any advice. TIA.


     Ok so why are the utilities in your name, huge mistake, and now you are stuck ?  The utilizes cos do not care what your lease says. Late fees, not certain, HOWEVER YOU created this stress. NOT attacking you but making sure you never do this again.

    Good luck 


     Some companies won't allow tenants to have the utilities in their name.  I have that with one of my rentals and the water.

    1Reply
  • Theresa HarrisPro Member
    Member since 2019 · 15k+ posts · 11k+ votes
    2y

    I agree with Chris.  Start the eviction process.  If he isn't following the terms of the lease, time for him to go.  Because you are in California, I'd talk to an eviction attorney and left them do it.

    1Reply
  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    2y

    I think it's a waste of time to write a stern letter or otherwise interact with this renter. They paid the bill in the past, so they know it's their responsibility. The truth is, you've allowed them to stop paying, so they will ride this wave as long as you allow it.

    Based on your location, my only suggestion is that you hire an attorney and work on removing this Tenant as quickly as possible.

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  • Bob S.
    Real Estate Consultant · Cleveland · Member since 2020 · 6k+ posts · 3k+ votes
    2y
    Quote from @Theresa Harris:
    Quote from @Bob S.:
    Quote from @Jorge Liang:

    A little context - my tenant has been in a pissy mood since I confronted him about misusing the driveway (blocking traffic flow). He started to be late on utility payments sporadically since Jan 2023. Then, in around May-June, he stopped sending payments. He has paid rent every month. The utility bills are under my name, but I have written in the lease that he is responsible for all utilities. He has had a history of paying the utilities when I sent him the bills. To date, he owes me $2.6k and counting.

    I plan on writing a professional yet stern letter to request payment next week. I also have all of the evidence and paper trail to pursue small claims. 

    One question - can I charge late fees for this scenario? I have a late fee clause in the lease but not sure if it only applies to the rent.

    I would appreciate any advice. TIA.


     Ok so why are the utilities in your name, huge mistake, and now you are stuck ?  The utilizes cos do not care what your lease says. Late fees, not certain, HOWEVER YOU created this stress. NOT attacking you but making sure you never do this again.

    Good luck 


     Some companies won't allow tenants to have the utilities in their name.  I have that with one of my rentals and the water.


     I have never heard of such a thing and we have done business across America. 

    0Reply
  • Henry T.
    Member since 2022 · 1k+ posts · 1k+ votes
    2y

    In Seattle ANY untility not paid, the utility goes after the owner. No matter who's name it is in. This is now the law since 2022. If your lease says tenant must pay utilities, and he's not, he's in default and needs to be evicted. Name on utility bill does not matter. The lease determines responsibility.

    1Reply
  • Greg M.
    Rental Property Investor · Los Angeles, CA · Member since 2017 · 2k+ posts · 5k+ votes
    2y
    Quote from @Bob S.:
    Quote from @Theresa Harris:

     Some companies won't allow tenants to have the utilities in their name.  I have that with one of my rentals and the water.

     I have never heard of such a thing and we have done business across America. 

    I've seen it on this forum many times where the utility remains with the owner of the property, not the renter.

    In OP's case, Los Angeles allows the utilities to be put in the tenants name and even has a "landlord program" where it can easily get switched between the landlord and tenant without any disruption or additional charges.
    0Reply
  • Bob S.
    Real Estate Consultant · Cleveland · Member since 2020 · 6k+ posts · 3k+ votes
    2y
    Quote from @Greg M.:
    Quote from @Bob S.:
    Quote from @Theresa Harris:

     Some companies won't allow tenants to have the utilities in their name.  I have that with one of my rentals and the water.

     I have never heard of such a thing and we have done business across America. 

    I've seen it on this forum many times where the utility remains with the owner of the property, not the renter.

    In OP's case, Los Angeles allows the utilities to be put in the tenants name and even has a "landlord program" where it can easily get switched between the landlord and tenant without any disruption or additional charges.

     Interesting new to me, CRAZY!! 

    0Reply
  • Mathew Pezon
    Rental Property Investor · Allentown, PA · Member since 2014 · 67 posts · 38 votes
    2y

    When residents do NOT have utilities in their name, in our leases the payments go to the oldest charge. So you'd apply the "rent" payments to the outstanding utilities, meaning rent is still owed. The you proceed with the process for outstanding rent. 

    when residents DO have utilities in their name, then it's up to them to meet the obligations. 

    2Reply
  • Allan Smith
    Contractor · Nashville, TN · Member since 2014 · 1k+ posts · 1k+ votes
    2y

    Everything in here so far is very true. Heed their advice. 

    a stern letter is make believe. It does nothing. Send eviction letter.

    it should not have gone this long. Them owing you 2.6k means it's been going on for multiple months. It shouldn't go more than 2 weeks.

    the tenant is stringing you along. Time to take back control of the situation! ....and hire a prop mgr haha.

    0Reply
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