Utilities

Utilities

Rental Property Investor · Oak Park, MI · Member since 2013 · 222 posts · 35 votes
When tenants vacate the property , what became of the utilities in Michigan , do they get shut off automatically once they inform the service provider they moving ? I've just never dealt with this and need direction
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Railroad Conductor / Future investor · New Baltimore, MI · Member since 2015 · 130 posts · 40 votes
10y

We just bought our first rental, when we set up the utilities they put us in a landlord plan. When the tenants move out it would automatically return back to us or in our case back to our LLC. Hope this helps.

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  • Railroad Conductor / Future investor · New Baltimore, MI · Member since 2015 · 130 posts · 40 votes
    10y

    We just bought our first rental, when we set up the utilities they put us in a landlord plan. When the tenants move out it would automatically return back to us or in our case back to our LLC. Hope this helps.

  • Buy & Hold Owner · Redlands, CA · Member since 2015 · 5k+ posts · 2k+ votes
    10y
    Originally posted by @Donald Cooley:

    We just bought our first rental, when we set up the utilities they put us in a landlord plan. When the tenants move out it would automatically return back to us or in our case back to our LLC. Hope this helps.

     Me too - - makes life simpler :)

  • Investor · Fenton, MI · Member since 2015 · 142 posts · 46 votes
    10y

    @Tereal Wilsonn, don't have direct experience with this, but I would make contact with the utilities directly and make sure they are either shut off or transferred into your name temporarily.  Let's face it, in Michigan, you have to keep the power and possibly gas on to just heat the house, so I don't think I would want all the utilities off anyway unless you are prepared to completely winterize the property.  That would make it more difficult to rent out as well, so I would make contact with all utilities ASAP and get them transferred into my name and ensure they are kept on.  Again, just my two cents as I have never been through that yet, but that is what I would do.

  • Investor · Lansing, MI · Member since 2014 · 27 posts · 9 votes
    10y
    I would suggest doing the same thing as stated above. I know in Lansing we have the landlords plan as well. One thing I learned the hard way is keep a close eye on your tenants as one of mine moved out in the middle of the night and the gas reverted back to my name and they left the heat turned up to 80 with the windows open in January. I didn't find out till a few days later and got hit with a $800 gas bill. So be careful!
  • Real Estate Agent · Grand Rapids, MI · Member since 2014 · 493 posts · 200 votes
    10y

    Many utilities in Michigan have some form of landlord program where the utilities are automatically put back in your name if a tenant moves and has them shut off.  (Sometimes this is your first notice the tenant is moving or has moved.)  Some of the programs have late payment and shut off notifications.  

  • Real Estate Broker · Chicago, IL · Member since 2015 · 531 posts · 266 votes
    10y

    Its best that utilities are transferred. If you turn off utilities then the new tenants have to have the utility company come out to get them turned back on.

  • Real Estate Agent · Southington, CT · Member since 2008 · 5k+ posts · 3k+ votes
    10y

    call the utility company. Most utility companies have the option to have the utilities automatically put into your name as the landlord when the tenant vacates and disconnects the utils. 

  • Investor · SE, MI · Member since 2013 · 1k+ posts · 461 votes
    10y

    I agree with the above posters- we put all the utilities under a "landlord plan" so that they switch automatically to us when the tenant takes them out of their name.  The utility company likes it (in our case DTE) since they always have someone to bill, and I like saving the $5/switch fee and it is another way of knowing (and proving) that a tenant has vacated the apartment.

    So far that has only helped us once, but an inherited tenant (in place when we bought the building) moved out and didn't pay rent.  I was fairly certain that he had vacated, but the e mailed notice that he had taken the electricity out of his name was further proof that he had vacated- he had left enough stuff behind that it would have been questionable otherwise.

    I am fairly certain our water supplier has something similar, but haven't used it since we have 2-4 unit buildings and just one water meter at each building, so water is included in rent for us.

  • Rockford, IL · Member since 2016 · 126 posts · 48 votes
    10y
    Originally posted by @Donald Cooley:

    We just bought our first rental, when we set up the utilities they put us in a landlord plan. When the tenants move out it would automatically return back to us or in our case back to our LLC. Hope this helps.

    Be careful with this process, as some tenants are aware of these provisions, and quit paying the utilities.  If you know the move out date, you can transfer the account to your name in advance.  I included this clause in my lease as well to make sure that tenants get the accounts in their name prior to move in.

    • Tenant shall be responsible for arranging for and paying for all utility services required on the Premises. Tenant will show proof of utility accounts, or account numbers registered in his or her name for the premises no less than two days prior to occupancy. Utilities paid by the Tenant include natural gas service and electricity. Tenant shall not cause any interruption or disconnection of service during occupancy due to non- payment of utility bills or other reasons. If the Tenant fails to pay for required utilities, the expense of the Tenant’s unpaid utilities billed to the Landlord will be deducted from the Tenant’s security deposit.
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