Can or should I let the water be turned off

Question

I have a duplex in Wisconsin, and both tenants are behind on water and sewer to the point that the city is going to shut off the water. The accounts are in the tenant's name, but as the landlord, the city is also notifying me. If the bills are never paid, the city will just put the balance on my property taxes. I'm non-renewing the lease for both tenants, and they should be out by the end of June. Just looking for some insight and what to do. On one hand, it's the tenant's responsibility to pay water and sewer, and the account is in their name. On the other hand, will this open up more issues, especially if this non-renewal turns into an eviction? The total bills overdue for both units are over $700 (The city bills every 3 months). I can easily pay the bill, but I also believe that if I do, I'm never getting reimbursed for this.

Drew Sygit · Answer

Hmmm, sounds like the water bill is still your liability, even though the city puts the tenant's name on it.

We have the same issue in the majority of cities we do business in here in Metro Detroit.

Recommend you contact the water dept and find out more about the turnoff process.

We will let the city send Shutoff Notices to the tenants and most tenants will pay the minimum to keep the water on. That's less you'll have to pay when they move out and stick you with the balance.

Peter Falk · Answer

Hopefully their security deposit will cover that bill they should have paid, so I think you have an easy case to deduct that from their security deposit when accounted for when the lease ends.  I'm not sure where you are at, but in Madison, it is the same, where gas and electric unpaid bills stay with who owes them (assuming the tenant) while water and sewer is a public utility and will fall to the owner/their tax bill if needed, if tenants don't pay.  I'm surprised both sides ended up owing.  If you find this to be common with your tenant base, could consider including water/sewer and charging more for monthly rent.

Rebecca Knox · Answer

Also, I have used Tracy McPike or Christy Cooper Librizzi for evictions in the past and they are both reasonable and very skilled.

Dave Peterson · Answer

I would pay the water bill or you may end up with a big mess when they can't flush the toilet.

Brad Sicoli · Answer

In my properties and at the large apt complexes I've worked at we always use "landlord revert" or basically the water/sewer company auto deducts the landlords account when the tenant fails to pay.  Then we add that balance to their tenant ledger and if they don't pay that (along with the admin fee specified in the lease) then it's a lease violation which is grounds for eviction.

I've worked in a lot of cities and each judge handles evictions differently but generally speaking it's hard to evict someone for utility or late fee non payment alone.  It is, however, very easy to evict someone due to holdover.  In other words: you gave proper notice of non renewal but they stayed past that date anyways and are refusing to leave, that's holdover.  I always try to avoid evicting due to non payment of utilities or fees.  If you evict it's best to evict due to holdover or non payment of rent rather than non payment of utilities.

I've been kicked in the dick by tenants so many times and sticking me with the utilities at the end of the lease is just one example.  If I were you I would be professional, continue to bill back utilities on their ledger, give the proper written notice of non renewal, and coach them on all the things you will charge them for at move out if they don't clean, etc.  I would just prepare for the unit turn.

Us landlords get screwed by tenants, judges, realtors, prop managers, contractors and the irs.  getting stuck with water sewer is just another kick in the pants.  If you want, you can do like my old employer did and send them to collections for the utilities they owe.  You should definitely deduct it against the sec dep.  My old employer used Hunter Warfield for collections and I should probably start doing that on my rentals too.

JD Martin · Answer

You're never getting reimbursed anyway unless you have a deposit you can take it from, which you can do legally since the bill will be charged to your property. In states like that where utility bills stay with the property, I would never let the tenants get behind, even if they were responsible for paying, and would have non-payment of utilities as a valid reason to start eviction proceedings.

I was a city manager in Ohio. I can tell you some horror stories about the lengths tenants will go to if utilities are disconnected for non-payment. I saw tenants run double-ended garden hoses to the neighboring property at night to steal water from them. Saw them dig up the neighbor's yard and illegally tap their water line. I saw properties where they just brought in jugs of water to use for cooking and using one toilet all day before trying to wash it down with their one jug of water. You don't want any of that so I would just pay and collect from the tenants whatever you can collect.

Theresa Harris · Answer

They are in violation of the lease, get them out ASAP.  You are never going to be reimbursed for it anyhow.  Are they at least paying the rent?

Jules Aton · Answer

I have always kept water bills in my name and invoiced the tenant for this reason. Best wishes, it sounds like an unfortunate situation. Hopefully they pay rent through June.

John Clark · Answer

Pay the bill. You will have to pay it to get the water turned back on anyway, so you’re not avoiding the charge by not paying.

Also, you complicate the eviction if it comes to that. Right, Wrong, or indifferent, you will be accused of constructive eviction if the water is turned off.

Pay, and immediately sue (while they are still tenants?) for the money.

Eric Canning · Answer

Thank you all so much for the input. PLOT TWIST, they actually paid!! The water company posting was enough. I planned to pay it after all the input and after talking to a couple of attorneys, but I was going to wait until midnight Wisconsin time, which is easy, as I'm on Alaska time. My leases are month-to-month, so hopefully they just leave, but I'm thrilled they saved me the money.

Can or should I let the water be turned off

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