Tenant won't pay water bill. Any suggestions?

Tenant won't pay water bill. Any suggestions?

Investor · Macomb, MI · Member since 2016 · 121 posts · 8 votes

Hey all fellow landlords "in the trenches" with me in the Detroit area:

In the five years my tenant has been at my rental property, most of the time he has been $300-$600 behind in the water bill.  It's his responsibility to pay it in the lease.  He pays the rent and keeps it clean but is lazy about the water.  I've tried different tactics to motivate him.  I've contacted the city and requested they send him a shut-off notice as a scare tactic but specifically told the city NOT to turn off the water for fear of ethical backlash in court from the judge. This tactic worked in the beginning but then he called the city asking questions and they told him that I requested the shut-off notices and not to turn off the water.

Then I sent him 30 day eviction notices asking him to pay $200 towards the bill then I'd agree to not file the eviction with the court, if he paid.  Or if he didn't pay, I'd file it.  This approach has worked so far but I'm getting tired of sending him the notices. 

A couple years ago, I added an addendum to the lease asking for an extra $100 per month and I'd pay the water bill but he refused.

On the bright side, over the past 12 months, he has paid the bill and there is a $0 balance. Yay!  Maybe he robbed a bank recently. I thought he looked familiar in a FBI most wanted poster. LOL. A couple times recently he bragged to me that he's paying it.  As if he deserves extra credit for doing something he's supposed to be doing anyway.

However, I know he will get behind again in the future. Any future suggestions? What do you guys do?

Thanks,

Todd

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Residential Real Estate Broker · San Antonio, TX · Member since 2016 · 506 posts · 311 votes
10y

Our leases require them to have utilities in their name and active for the duration of the lease.

Any utility billing that comes to us after they take possession is added to their ledger and paid first from their incoming rent payments.

If the payment isn't enough to cover the rent too, then they are delinquent and subject to late fees and eviction filing.  

After a month, if they haven't put the utilities in their name, we notify them and take them out of ours.

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  • Investor · Macomb, MI · Member since 2016 · 121 posts · 8 votes
    10y

    Thanks for your time.

  • Professional · Sammamish, WA · Member since 2016 · 34 posts · 15 votes
    10y

    If your state allows unlawful detainers for utilities, that's your best option.

  • Investor · Houston, TX · Member since 2015 · 12 posts · 17 votes
    10y

    In all of my properties, I require tenants to show proof of having placed all utilities in their name before handing over the keys. Specific to your question, at lease renewal time I'd take an average, pay it myself and increase the rent commensurate to. If they are unwilling to accept these terms they could live elsewhere.

  • Real Estate Agent · Grand Rapids, MI · Member since 2014 · 493 posts · 200 votes
    10y

    Easy:  Evict.

  • Investor · Vienna, VA · Member since 2016 · 1 post · 0 votes
    9y

    I ran into such a problem recently. Glad to find out that it is covered in clause 22 "Utilities Agreement" of Maryland standard lease (Long & Foster).  Utility costs are considered as additional rents, and enforced by the lease.

  • Member since 2020 · 2 posts · 0 votes
    5y

    I know this is way late but the Michigan Law that establishes the right for water liens has an exemption for rentals.  Search for "mcl 123.165".   The City of Warren in Macomb county has a pdf you can file for the exemption.  Look for "LTA" here https://www.cityofwarren.org/d...

    Here's the exemption:
    MCL 123.165:
    "this act shall not apply if a
    lease has been legally executed, containing a provision that the lessor
    shall not be liable for payment of water or sewage system bills accruing
    subsequent to the filing of the affidavit provided by this section. An
    affidavit with respect to the execution of a lease containing this
    provision shall be filed with the board, commission, or other official
    in charge of the water works system or sewage system, or both"

    Anson

  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
    5y
    Originally posted by @Anson Luis:

    I know this is way late but the Michigan Law that establishes the right for water liens has an exemption for rentals.  Search for "mcl 123.165".   The City of Warren in Macomb county has a pdf you can file for the exemption.  Look for "LTA" here https://www.cityofwarren.org/d...

    Here's the exemption:
    MCL 123.165:
    "this act shall not apply if a
    lease has been legally executed, containing a provision that the lessor
    shall not be liable for payment of water or sewage system bills accruing
    subsequent to the filing of the affidavit provided by this section. An
    affidavit with respect to the execution of a lease containing this
    provision shall be filed with the board, commission, or other official
    in charge of the water works system or sewage system, or both"

    Anson

     Yeah, good luck with that. Michigan cities ignore this statute because they do NOT want to get into the collection business!

    Currently, they can place liens against the property for unpaid water bills.

    So, Warren, and most other cities, either don't offer a Water Affidavit program or if they do, they make is so expensive and onerous on owners & tenants, that no one participates.

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