700$ Water bill not paid by tenant

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700$ Water bill not paid by tenant

Gp G.
Investor · Atlanta · Member since 2019 · 529 posts · 89 votes

Hi,

Seems the tenant left on a water tap or shower in the townhome for a few days in August 2025. This townhome has HOA which outsourced water meter reading etc. to a third party company. This third party company charged about 700$ to tenant (as tenant direct withdrawal from bank stopped working some reason probably tenant closed that bank account) which tenant did not pay for one particular month like August 2025. I paid that 700$ from my pocket about 3 months ago as HOA company was moved from old company to new company at that time (that is the time when I came to know this past 700$ water balance). I decided to pay thinking the new HOA transition may take time and tenant water may shut off and i can easily reimburse from this long term tenant. But even after following up for 3 months by the property manager she is not paying it. I am switching my property manager starting 04012026 end of current tenant lease to new property manager. I have all these moving parts. How do I make sure this tenant pays the pending water bill of 700$. So far this tenant pays rent on time and long term for multiple years. Third party confirms that there are no issues with the water meter or reading as this much spike of water bill never happened any other months as usual water bill around 50$ at maximum. New property manager in process of reaching to tenant to renew the lease now. Old property manager says no more use in contacting the tenant as she is not lifting the phone, responding to them and suggesting to deduct from the security deposit at the end of the lease. How do I go about solving this issue? Please advise

Thanks,

GP

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Kevin Sobilo
Realtor · Hanover Twp, PA · Member since 2018 · 3k+ posts · 3k+ votes
9mo

@Gp G., A couple thoughts:

1. When a utility bill can impact your ownership of the property keep it in your name so that payment is always within your control! This is usually only the case when the utility is provided by the municipality or in your case HOA.

2. If #1 is the case and the bill is a fixed price, bake the cost into the rent. 

3. If #1 and the bill is variable based on usage, write the lease so that each bill is billed back to the tenant and due with the next rent payment. 

4. Most leases state that any monies due the landlord are either "payable BEFORE rent" or "payable AS rent". This would include things like late fee, billed back utility payments, damages, etc. That means that when they don't pay those things you treat it as "unpaid rent" and take the same actions to move to evict them. 

So, your PM should have given them their pay or quit notice or whatever notice your state requires and moved to evict. 

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  • Kevin Sobilo
    Realtor · Hanover Twp, PA · Member since 2018 · 3k+ posts · 3k+ votes
    9mo

    @Gp G., A couple thoughts:

    1. When a utility bill can impact your ownership of the property keep it in your name so that payment is always within your control! This is usually only the case when the utility is provided by the municipality or in your case HOA.

    2. If #1 is the case and the bill is a fixed price, bake the cost into the rent. 

    3. If #1 and the bill is variable based on usage, write the lease so that each bill is billed back to the tenant and due with the next rent payment. 

    4. Most leases state that any monies due the landlord are either "payable BEFORE rent" or "payable AS rent". This would include things like late fee, billed back utility payments, damages, etc. That means that when they don't pay those things you treat it as "unpaid rent" and take the same actions to move to evict them. 

    So, your PM should have given them their pay or quit notice or whatever notice your state requires and moved to evict. 

    2Reply
  • James JonesPro Member
    Investor · Collierville, TN 38017 · Member since 2017 · 734 posts · 542 votes
    9mo

    This is less about the water bill and more about leverage and documentation.

    A few key points based on experience:

    1. Check the lease language first

    Before anything else, confirm the lease clearly states utilities are the tenant’s responsibility and that unpaid utilities constitute a lease violation or collectible charge. If it’s not clearly spelled out, your leverage is limited.

    2. You cannot “force” payment outside the lease

    Since rent is current, you generally can’t withhold services or take enforcement action solely over a utility balance unless your lease allows utilities to be treated as additional rent.

    3. Do NOT renew the lease without resolving this

    This is your strongest leverage point.

    No renewal should be offered unless:

    – The $700 is paid in full, or

    – A written repayment agreement is signed and enforced

    Once you renew, your leverage drops significantly.

    4. Security deposit deduction is a last resort

    You can deduct it at move-out if allowed by state law, but:

    – That assumes the tenant leaves

    – You’re tying up capital for an unknown timeline

    – You still carry the risk of dispute

    It’s a backup, not a strategy.

    5. Written demand, not phone calls

    Have the new property manager issue a formal written demand outlining:

    – The charge

    – Supporting documentation

    – A deadline for payment

    – Clear consequences (non-renewal)

    Silence on the tenant’s end is often strategic. Written notice forces a decision.

    6. Treat this as a business signal

    A tenant who ignores a documented $700 obligation while continuing to pay rent is testing boundaries. That doesn’t mean evict immediately, but it does mean tightening controls.

    Do not renew until it’s resolved in writing. Either collect now, formalize repayment, or plan to recover it at move-out. Anything else just trains the tenant that utilities are optional.

    This is exactly why lease structure and enforcement matter, even with “good” long-term tenants.

    2Reply
  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
    9mo
    Quote from @Gp G.:

    Hi,

    Seems the tenant left on a water tap or shower in the townhome for a few days in August 2025. This townhome has HOA which outsourced water meter reading etc. to a third party company. This third party company charged about 700$ to tenant (as tenant direct withdrawal from bank stopped working some reason probably tenant closed that bank account) which tenant did not pay for one particular month like August 2025. I paid that 700$ from my pocket about 3 months ago as HOA company was moved from old company to new company at that time (that is the time when I came to know this past 700$ water balance). I decided to pay thinking the new HOA transition may take time and tenant water may shut off and i can easily reimburse from this long term tenant. But even after following up for 3 months by the property manager she is not paying it. I am switching my property manager starting 04012026 end of current tenant lease to new property manager. I have all these moving parts. How do I make sure this tenant pays the pending water bill of 700$. So far this tenant pays rent on time and long term for multiple years. Third party confirms that there are no issues with the water meter or reading as this much spike of water bill never happened any other months as usual water bill around 50$ at maximum. New property manager in process of reaching to tenant to renew the lease now. Old property manager says no more use in contacting the tenant as she is not lifting the phone, responding to them and suggesting to deduct from the security deposit at the end of the lease. How do I go about solving this issue? Please advise

    Thanks,

    GP

    Per the PMC, what was the tenant's last response about the bill?

    The PMC may NOT be following up diligently!

    They may need to visit the property to discuss with the tenant directly.

    @James Jones also has great points.

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  • Gp G.
    OP
    Investor · Atlanta · Member since 2019 · 529 posts · 89 votes
    9mo

    Thank you all for your great feedback

    1. When a utility bill can impact your ownership of the property keep it in your name so that payment is always within your control! This is usually only the case when the utility is provided by the municipality or in your case HOA.

    I always have utilities on tenant name.  Is it good idea to put on my name always? Please advise

    0Reply
  • Peter MckernanBusiness Member
    Residential Real Estate Agent · Irvine, CA · Member since 2013 · 2k+ posts · 1k+ votes
    9mo

    I would agree with all these responses. 

    1. Always have it in their lease to bill back if that is something that is comparable to the current market rent including rent. Most people do not bill back and charge less or the same as the comp down the street billing back.

    2. You cannot force this person out due to none payment for utility if the rent is paid in full and nothing has changed. So do not threaten or state you will evict them without payment. 

    3. I would continue you to ask, and add it to the rent ledger in the software, if this does not work then at move out, I would have all this documented and take this out of the security deposit when they leave so that you are documented if the old tenant does not agree and tries small claims.

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  • Melanie ThomasBusiness Member
    Real Estate Broker · San Antonio · Member since 2022 · 1k+ posts · 490 votes
    8mo

    Sorry you’re dealing with this. I would not renew the lease until the outstanding balance is paid. If they choose not to renew, I would deduct it from the security deposit. Good luck, and happy investing.

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