I received a notice from the gas company on 1/17 that the gas service at my SFH is being shut off on 1/22. This is the first notice I have received. The tenant is behind $140 and no payments have been received since Oct 16th, 2014.
A funny add-on to this is that I have an appliance repair scheduled for a gas range that isn't working....tomorrow. The electrical control panel is out so no way to use the actual oven/settings but the stove top is working fine...at least until Thursday! I am wondering if I shouldn't just cancel the $190 repair and wait to see if tenants pay their bill. <sarcasm> I won't cancel the repair.
I plan on calling the gas company tomorrow. No reason to call the tenant before hand. They would just lie. "I thought wife was paying, or - she thought I was paying, etc...).
Their lease states they are responsible for keeping utilities on. I sure would like to get rid of them for many reasons. I don't suspect they won't pay their bill but they will still have hot water due to an electric hot water tank. Of course it might get a bit cold! It is winter in Ohio after all.
How have you handle this situation? Can't afford to have the pipes freeze. Bad situation all the way around. I will be contacting them to at least let them know that I was notified.
Why are you going to call the gas company? All they care about is getting the bill paid. I have landlord agreements with our gas and electric company, and the bills revert to me if the tenant gets cut off. Like you, I don't want broken pipes and I'd rather pay the bill and deal with the tenant than repair plumbing.
My lease says money received can be applied to other fees first and rent last. I would contact the tenant (I'd have done this yesterday) and told them they need to pay immediately and avoid the shutoff. If they don't, though, I'd pay the bill. Again, to avoid plumbing damage. Then I'd work with the tenant to get the money from them. If not, and they pay rent on Feb 1, I'd apply that to the gas bill, then inform them the rent is late. And go from there, possibly to an eviction for non-payment.
Originally posted by @Jon Holdman :
Why are you going to call the gas company?
I can find out if the bill was paid since date of letter (1/14). The tenant could tell me they paid and might not have. I pretty much don't trust them at all. Easier to call the gas company and find out the status and be armed with the truth when I contact the tenant.
Apply their payments toward the gas first. Keep your pipes from bursting. Then begin eviction for non-payment of full rent + late fees.
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing