Tenant being evicted, utilites reverted to my name. Can I shut off?

Real Estate Agent · Cheyenne, WY · Member since 2009 · 205 posts · 51 votes

I am in the process of evicting a tenant and just got a notice from the power company that the power was switched into my name. This is almost surely because the tenant didn't pay. Can I shut off the power since the tenant agree to pay? This is is South Dakota and he has two young kids. He has refused to answer the door when the process server went to serve him the Summons.

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Steve Babiak

Real Estate Investor · Audubon, PA · Member since 2009 · 13k+ posts · 8k+ votes

12y

Be careful of doing anything that would fall under "self help eviction practices". Unfortunately for you, utility shut off by the landlord falls into "self help eviction practices".

What you should do is document the costs you incur for the utilities and add that to the monetary judgment. You will be out that money with little likelihood of collecting it, of course.

You sure that the tenant is still in the unit, and didn't do a midnight move out?

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Stephen E.
St Thomas, Ontario · Member since 2013 · 575 posts · 408 votes
12y
Is your rent inclusive of utilities or plus utilities? It sounds like it is plus utilities. I do not know about SD law but in my jurisdiction the key is whether you rent inclusive or exclusive. Rent inclusive and you are screwed, you have to keep paying for utilities even if they pay no rent. Disconnection of utilities is seen as denial of a 'vital service' and you are in trouble. However in this case it seems that the utilities were in the tenant's name and were for some reason transferred to yours. Step one would be to investigate this with the utility companies themselves and state that you gave no consent for utilities to revert to your name. If they will not take them out of your name the next step would be to consider asking for the utilities to be shut off, but you need someone very familiar with SD law to advise you before taking such a step. It may be frustrating but if there is a house with children in it shutting off utilities is a last resort and may well be illegal.
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Colleen F.Pro Member
Investor · Narragansett, RI · Member since 2013 · 8k+ posts · 4k+ votes
12y
I can't speak to the legalities of this situation but one of the issues is if the utilities are off the pipes can freeze so you need to keep this in mind if you don't keep them on you need to protect against this.
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Mariah JefferyBusiness Member
OP
Real Estate Agent · Cheyenne, WY · Member since 2009 · 205 posts · 51 votes
12y
Hmm, good point. I see a high of 18 degrees next week.
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Stephen E.
St Thomas, Ontario · Member since 2013 · 575 posts · 408 votes
12y
If the pipes will freeze I suspect the children will also. I am all in favour of making money as a landlord but there are limits. How long does it take to get eviction in SD?
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Steve Babiak
Real Estate Investor · Audubon, PA · Member since 2009 · 13k+ posts · 8k+ votes
12y
Be careful of doing anything that would fall under "self help eviction practices". Unfortunately for you, utility shut off by the landlord falls into "self help eviction practices".

What you should do is document the costs you incur for the utilities and add that to the monetary judgment. You will be out that money with little likelihood of collecting it, of course.

You sure that the tenant is still in the unit, and didn't do a midnight move out?
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Mariah JefferyBusiness Member
OP
Real Estate Agent · Cheyenne, WY · Member since 2009 · 205 posts · 51 votes
12y
In SD the tenant must be served the 4-day summons in person. He refused to answer the door and no longer works where he worked when he moved in. Now we are waiting for an appearance with the judge to get permission to put an ad in the paper to start the 4 day process. After the ad runs it will take about 2 more weeks in the best case.

He's definitely still there.
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Mariah JefferyBusiness Member
OP
Real Estate Agent · Cheyenne, WY · Member since 2009 · 205 posts · 51 votes
12y
I'll add that the process server tried every day for a week and he never went to the door. That was almost a week ago and we still haven't received the paperwork we need to request an appointment with the judge and then it will probably take a week to see the judge. The we get the ad in the paper.
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Steve Babiak
Real Estate Investor · Audubon, PA · Member since 2009 · 13k+ posts · 8k+ votes
12y
Is there another tenant in an adjoining unit, or a neighbor, who can spy to let you know when he goes out of the unit? He has to get food sometime. Once out of the unit, the process server gets there to wait for him to come back.
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Pam R.
Investor · Delaware, OH · Member since 2013 · 224 posts · 64 votes
12y
The first thing I thought of when I read this...candles. Years and years ago my parents had a tenant whose electric was shut off (they didn't know it until after the eviction)...and there was candle wax everywhere. Is the house all electric, or also gas? Is there a gas stove? I agree with Steve - leave the utilities on, and add them to the monetary damages. Whether you are in the right or not, it seems to me it's not worth the possible consequences of shutting them off.
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Mariah JefferyBusiness Member
OP
Real Estate Agent · Cheyenne, WY · Member since 2009 · 205 posts · 51 votes
12y
Yes, it's a duplex. Good suggestion.
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Joel OwensBusiness Member
Moderator
Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes
12y
When I had my 20 unit the power company had 2 options for landlords.

One is a reverting bill to where if tenants left it would be put in our name. The benefit to this is if a tenant left the power stays on and I can rehab the unit to get rent ready again. There is no switchover cost for us to pay.

The downside is the tenants will LIE and call the power company to say they are moving when they are not or they are being evicted. The power company would then transfer to the landlord without telling and you get socked with a huge bill for hundreds of dollars.

After this happened one time I quickly changed to when tenants power gets cut off in their name for non payment it does not revert to me the landlord. Instead it stays off until they pay or move. If they move and it's vacated then I call power company to turn on in my name to work on the unit. The charge was 25 dollars each time for each unit to turn on when we are getting it rent ready again. if we had 2 out of 4 units vacant we would get one turned on an run extension chords to pay only one fee to rehab both units as they were close together. We could pass from one window to another etc.

Your state sounds bad for evictions. Here in GA they do not have to answer. You simply mail and also tack to the door. If they do not personally get served or answer to go to court etc. then you can just get eviction here and not damages and would need to take them to small claims court.

With your cold weather it sounds like leave the power on as you would be savings a few hundred to possibly lose thousands in repairs to your property.

No legal advice.
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Bobby Beard
Real Estate Investor · Panama City, FL · Member since 2012 · 265 posts · 58 votes
12y
I would have a hard time with this. I would have them pull the meter. I couldn't stand knowing they are living there free and using my power. No way never. I would take my chances..
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Rob K.
Investor · Southeast, MI · Member since 2012 · 2k+ posts · 1k+ votes
12y
A little bit of cash out of pocket for utilities is the least of your problems when a bad tenant is involved. With a high of 18 next week, you could be cutting off your nose to spite your face. I once had a pipe burst when a furnace stopped working while my tenant was out. The house was a complete wreck. Fortunately, my insurance was good and they paid the $30K to put the house back together. Since then, I have been completely paranoid about frozen pipes.

I would proceed with the eviction, but also offer the tenant some cash to move out now. Tell him you will offer $200 once the house is empty AND clean. I have done this before and it works. It's nice to get a clean house back. I just had some Section 8 pigs move out and they left 25 cubic yards of trash and a family of cockroaches. Fortunately, there's no damage. Just a filthy mess.
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Aly W.
Investor · Middletown, NJ · Member since 2008 · 2k+ posts · 1k+ votes
12y
We had tenants being evicted; the sheriff served the notice to vacate which gave them another 5 days I think. On the 3rd day, we decided to visit the property. Texted the tenants the day before and they actually responded with "Ok, no problem".

We got there and the house was empty. The power had been shut off for non payment 5 days before. The refrigerator was full of rotting food. If the utilities don't automatically revert to the landlord, call the power company every few days to see if the power was switched to another address or shut off.
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Duncan Taylor
Real Estate Investor · Member since 2013 · 866 posts · 487 votes
12y
Originally posted by @Mariah Jeffery:
In SD the tenant must be served the 4-day summons in person. He refused to answer the door and no longer works where he worked when he moved in. Now we are waiting for an appearance with the judge to get permission to put an ad in the paper to start the 4 day process. After the ad runs it will take about 2 more weeks in the best case.

He's definitely still there.

A day or so of time from a PI will get him served.

Also, you said he has kids, if your helpful PI can document there is no activity there for 24 hours or more, I'd contact social services over concern for the children.

But, whatever you do, don't take any self-help action to try to get around the requirements of an eviction.
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Duncan Taylor
Real Estate Investor · Member since 2013 · 866 posts · 487 votes
12y
Originally posted by @Bobby Beard:
I would have a hard time with this. I would have them pull the meter. I couldn't stand knowing they are living there free and using my power. No way never. I would take my chances..

At the current temps there you would be creating a bigger problem for yourself with frozen and broken pipes.

That is, assuming it was even legal to do there.
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Bill Gulley
Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes
12y
Originally posted by @Mariah Jeffery:
I am in the process of evicting a tenant and just got a notice from the power company that the power was switched into my name. This is almost surely because the tenant didn't pay. Can I shut off the power since the tenant agree to pay? This is is South Dakota and he has two young kids. He has refused to answer the door when the process server went to serve him the Summons.

No, not while he's in possession.

Turning off is never a good idea, most utility companies have not only a turn-on fee but an inspection. If you're not to code or have any issues, they won't turn it on. Know a guy who had to replace the weather head, ended up changing the panel out and everything to the pole, $$$$. :)
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Bobby Beard
Real Estate Investor · Panama City, FL · Member since 2012 · 265 posts · 58 votes
12y
Duncan Taylor power goes off and I show up to winterize.. While there I will "feel sorry" for them and offer to help because I have a heart... Here's a moving truck, storage rental, and a week at a local motel...
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Duncan Taylor
Real Estate Investor · Member since 2013 · 866 posts · 487 votes
12y
Originally posted by @Bobby Beard:
Duncan Taylor power goes off and I show up to winterize.. While there I will "feel sorry" for them and offer to help because I have a heart... Here's a moving truck, storage rental, and a week at a local motel...

Okay, have you ever done that?

Have you ever stood before a judge AFTER doing that to complete the eviction process? I bet not.
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Joel OwensBusiness Member
Moderator
Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes
12y
Bobby what you are talking about is a "self help eviction".

You just can't do that type of thing. It's like some people saying they will take the front door off of a property or other crazy things to get back at a tenant. Now do landlords do these things?? Sure I have seen landlords try these types of things all the time. More common place in suburban to rural locations where the laws are let slide sometimes with the good ole boys network.

If you go in front of a judge though with this you can get hit with thousands in fines. It's just not worth it for most investors to try such things. What if the tenant doesn't have power and lights candles and the whole place catches fire??

All kinds of things can happen that are much worse than paying a few hundred in a power bill while waiting for eviction.

The KEY with all of this is the power has reverted to the landlord. If the power was just off and not reverted to the landlord then that would fall on the tenant. At that point still with 18 degree temps it doesn't make sense for the landlord not to have power on.
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