Collecting utilities for last month of rental?

Collecting utilities for last month of rental?

Sunnyvale, CA · Member since 2013 · 5 posts · 1 vote

Hello all,

Thank you for your advice on my earlier questions. I have another follow-up question:

My tenants (and roommates) have month-to-month lease agreements. They are scheduled to move out at the end of February. In the past, I've usually given up on collecting the amounts due for utilities for the last month (as by the time I get the bill the following month, the tenants have moved out already).

Is there a means by which I can still ask for the utilities for February after I get the bills in March (or later even)? Or is it considered part of the cost of doing business after they have moved out?

Thank you!

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  • Professional · Yona, Guam · Member since 2014 · 62 posts · 30 votes
    12y

    Usually whenever possible you would have the utilities in their name, but roommates are not that easy. The easy answer is using the security deposit. Your lease should hold them responsible for the utilities and allow you to charge them for unpaid utilities. In some cases there is an additional fee for unpaid utilities. This would be pointed out in the move-out information you provide when they give notice.

  • Colleen F.Pro Member
    Investor · Narragansett, RI · Member since 2013 · 8k+ posts · 4k+ votes
    12y

    can you get an estimate? obviously if they share in cable ect they should pay the set cost on move out. For electric you might get an estimate based on previous month. I would mention it to them now and write an estimated bill due on move out. No security deposit back without deducting the utilities. Not sure if the utility company will help you here.

  • Rental Property Investor · State College, PA · Member since 2013 · 287 posts · 99 votes
    12y

    In Pennsylvania, the account owner can usually call the utility to get a semi-accurate reading for the specific day that month. If CA has switched to smart meters for the electric service, the reading should be quite accurate (you may even have online access). If you have gas, you should be able to read the meter and determine a cost per CCF and bill that to your residents.

    For fixed expenses (cable, phone, etc), I would simply prorate the rent based on number of days since the last bill.

    Last resort would be the security deposit. The problem w/ using the sec. dep is that if there is damage, or if they owe for something else, you're out the money to pay for utilities. I'm dealing with that for one of my current residents. They have some back bills on their water. There is enough in their security deposit to cover the water, but I know the remainder in the deposit won't cover any additional fees or damages to my unit.

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