Tenant hasn't put water bill in her name yet. Going on 3 months!

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Tenant hasn't put water bill in her name yet. Going on 3 months!

Nathan Waters
Rental Property Investor · St Joseph, MI · Member since 2015 · 302 posts · 106 votes

I bought a small 1BR 1Bath HUD home back in September. I got it rented out in March. I know; the turn around was slow, but it is what it is. Learned a lot and got what seemed to be a good tenant. She got the gas and electric put in her name right away. But I had some issues with the water bill due to a broken water meter. It took me about 6 weeks to get it resolved before she could put the water in her name. I paid the first 3 months of water and told her she would be responsible for it and gave her an estimate. Now she is making excuses about a water bill at her families house that is in her name. She can't afford to bring it current to put my house in her name. To top it off, she says she can't afford to pay the water bill that she owes me. i came up with a reasonable payment plan to get her caught up. Any advice? Sound off BP.

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Jonathan G.
Investor · Marietta, GA · Member since 2015 · 382 posts · 258 votes
10y
We had a long-term tenant that seem to ignore our request to pay an outstanding $450 bill. Finally we just sent a three day notice to pay or quit and suddenly we got the check. There is no sense in going around and around and arguing and begging and pleading. Use what tools you have which include your notice to pay or quit as well as eviction processes.
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  • Tom V.
    IA · Member since 2015 · 304 posts · 152 votes
    10y

    I bet there's money to pay you in her paycheck, I mean, you screened her income sources right? She's probably just financially irresponsible and spending her money on other crap. Maybe suggest to her some ideas on how she could get current with you, i.e. borrow from family or friends, have a yard sale, sell some stuff on craigslist, get a payday loan, credit card cash advance, etc. Good luck!

    1Reply
  • Sai T.
    Investor · West Chester , PA · Member since 2011 · 620 posts · 138 votes
    10y

    If you do not resolve the water issue then expect more trouble from her!

    That's how issue get started one and another then another then too late!

    2Reply
  • Edward Seid
    Real Estate Agent · Seattle, WA · Member since 2014 · 87 posts · 39 votes
    10y

    You've gotta be hard lined about this, Nathan. Tenants will push and push boundaries to their limits. Speaking in general, if they can get away with paying late, they will keep paying late! It was something I learned when I first started so let this be a good lesson for you! :)

    1Reply
  • Jonathan G.
    Investor · Marietta, GA · Member since 2015 · 382 posts · 258 votes
    10y
    We had a long-term tenant that seem to ignore our request to pay an outstanding $450 bill. Finally we just sent a three day notice to pay or quit and suddenly we got the check. There is no sense in going around and around and arguing and begging and pleading. Use what tools you have which include your notice to pay or quit as well as eviction processes.
    6Reply
  • Michael Noto
    Real Estate Agent · Southington, CT · Member since 2008 · 5k+ posts · 3k+ votes
    10y

    @Nathan Waters If she doesn't have money to pay you then it probably isn't going to magically come from somewhere. 

    The only way you will know for sure is if you serve her a version of your states notice to quit and go from there. 

    In the future, all of the utilities transferred into the tenants name as per the lease and of not they don't get the keys. Would have been worth rectifying the water meter issue before even looking to rent the place out. 

    0Reply
  • Shanequa J.
    Realtor · Houston, TX · Member since 2011 · 916 posts · 296 votes
    10y

    Check your local laws about utilities. Some cities will consider it part of the tenancy since the water has been in your name from the beginning. 

    0Reply
  • Kimberly H.
    Residential Real Estate Broker · Chicago Suburbs, IL · Member since 2013 · 1k+ posts · 594 votes
    10y

    We don't give keys until all utilities are in their name, although in some cities we can't do that with the water since they want a final water meter reading as of the lease start date. In those cases we give tenants a two week deadline to get it done with the understanding we will charge them for any water usage up to the deadline. Also, in our lease, for any utility they don't pay that we need to pay on their behalf (for example if they decided to cancel a utility) we charge them a service fee to pay it on their behalf to motivate them to pay it themselves. Last thing we need is more bills to pay. Any future rent payment would first go to any outstanding utility bill before rent.

    3Reply
  • Nathan Waters
    OP
    Rental Property Investor · St Joseph, MI · Member since 2015 · 302 posts · 106 votes
    10y

    @Kimberly H., That is similiar to what happen. I was not aware of the issues with the water meter when she moved in. It came up a week into her stay when I was informed they couldn't transfer the bill to her. So I told her I would pay for the charges until it could be transferred but gave her a specific deadline. I gave her an estimate of what the charges would be so she could set it aside. 

    Thanks for the advice everyone else. I have drawn a line in the sand and told her that I will expect the payments immediately. She is putting the water in her name on Monday supposedly. I'll have to follow up with the utility. @Michael Noto, She is a typical tenant that has poor priorities. Brand new 70" HDTV from rent a center, 22" chrome rims in her basement. I have no idea why she has them. They aren't even on her car, just sitting in the basement. She got all her furniture from rental store rather than getting stuff from garage sales or craigslist. She has family in the area. From the sounds of it, its a family tradition considering her grandparents water bill is in her name. Nothing flagged during the screening other than no rental history. She is young and its her first place on her own. Hope it doesn't become her first eviction.

    1Reply
  • Account Closed
    San Jose, CA · Member since 2015 · 4k+ posts · 3k+ votes
    10y

    @Nathan Waters @Jonathan G. I agree with giving her a notice to remedy or quit.  That was my thinking, too.  It's amazing how they come up with the money when you do that.  

    2Reply
  • Mags S.
    Rental Property Investor · Phila, PA · Member since 2015 · 276 posts · 111 votes
    10y

    If your tenant has their name on several family members water bill accounts, that tells me that the relatives owe on their accounts.  So they had your tenant put the account in your tenants name. Hope they are paying on those accounts and are current. If not, the utility company may not let tenant put their name on your rental account.  Pay or quit should bring it all to a head.

    0Reply
  • Alan Brown
    Rental Property Investor · NY MA CT VT MT, MO · Member since 2015 · 200 posts · 116 votes
    10y

    amazing how a pay or quit will make things start moving!  

    0Reply
  • James DeRoest
    Investor · Century, FL · Member since 2015 · 950 posts · 603 votes
    10y

    Had it once; "We've put a termination on the service. Water will be out of our name this Friday".

    2Reply
  • Jonathan G.
    Investor · Marietta, GA · Member since 2015 · 382 posts · 258 votes
    10y
    Nathan Waters It's been three days. Did she pay?
    0Reply
  • Nathan Waters
    OP
    Rental Property Investor · St Joseph, MI · Member since 2015 · 302 posts · 106 votes
    10y

    I'm meeting her on Friday. She said the water will be in her name and she is paying her rent on that day, (5 days late). If she doesn't pay the water I am going to give her a notice to pay or quit. This is something I'm new at, any tips on how to go about doing that? Do I go through my lawyer or with the courthouse?

    0Reply
  • Jonathan G.
    Investor · Marietta, GA · Member since 2015 · 382 posts · 258 votes
    10y
    Just Google "pay rent or quit" and find a form specific for your State. Fill it out and mail it, email it, and post it on the door. As you can see, the "line in the sand" philosophy has failed. Going around and around on this issue has failed. Don't wait until Friday as you may very well just get another excuse. If they pass the 3 day mark after posting, start formal process of eviction. Non payment of owed funds is a serious and big deal.
    0Reply
  • Nathan Waters
    OP
    Rental Property Investor · St Joseph, MI · Member since 2015 · 302 posts · 106 votes
    10y

    Update to anyone interested. On account of the tenant paying rent on time each month (5 days late one month), I really didn't want to go through an expensive eviction. So I came up with a new lease with increased rent and I pay for water. It will essentially wipe out the amount she is over due by the end of her lease and cover her typical water expenses. She's happy, I'm happy. No lawyer fees, no evictions which are horribly painful in Illinois. As long as she continues to stay on top of the rent, I think it will go well. She took on a second job about 3 weeks ago so I know her income is going to be going up as well.

    2Reply
  • JD MartinBusiness Member
    Moderator
    Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 16k+ votes
    10y

    I hope it works out but I predict you will be evicting at some point. 

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    0Reply
  • Davon Lowery
    Investor · Whitttier, CA · Member since 2015 · 405 posts · 110 votes
    10y

    @Nathan Waters is it in writing, in the lease or otherwise, that she is responsible for the water bill/utilities; as she is to put them in her name?

    0Reply
  • Account Closed
    Investor · Honolulu, HI · Member since 2013 · 3k+ posts · 1k+ votes
    10y

    If you don't put a cap on the amount she can use she will turn on all the faucets if you piss her off.  She could still do that her last month but you are in better  position to claim money.

    0Reply
  • Brian Ambrose
    Brentwood, TN · Member since 2016 · 19 posts · 10 votes
    10y
    Did u get a security deposit? Thats exactly what those r for. Just send her a certifed mail letter, stating your terms for repayment , if she fails to do that, those funds will be deducted from the deposit amount. Document everthing as you go, incase u need it in court later. But judges always side with tenants so be very careful in your coorespondance. If it gets really bad, get the help of an attorney.
    0Reply
  • Account Closed
    Everywhere · Member since 2016 · 63 posts · 26 votes
    10y
    Honestly I would contact an attorney who specializes in evictions and ask what the best course of action should be. If you are having problems this soon it is only the beginning. I'm sure you will have problems down the road but I hope I am wrong. I would have a game plan just in case she is late again and don't let her get away with it unless you want this to be an ongoing thing.
    0Reply
  • Ralph R.
    Investor · Bethel, AK · Member since 2013 · 1k+ posts · 852 votes
    10y
    Nathan Waters I thought you said she was a good tenant. She's late on rent and owes you water. You are going to end up in the hole and in eviction court here. As you gain more experience you will learn your first loss is your best loss. This tenant is stumbling in the wrong direction. If she moves out you will loose the back water bill. Did you sign a new lease or was your deal a verbal one. In court the lease will rule. If you signed again and it's another year lease then you prolonged your time dealing with this tenant. I see trouble down the road. RR
    0Reply
  • James Lemon
    Residential Real Estate Broker · Shreveport, LA · Member since 2016 · 12 posts · 3 votes
    10y
    Originally posted by @Kimberly H.:

    We don't give keys until all utilities are in their name, although in some cities we can't do that with the water since they want a final water meter reading as of the lease start date. In those cases we give tenants a two week deadline to get it done with the understanding we will charge them for any water usage up to the deadline. Also, in our lease, for any utility they don't pay that we need to pay on their behalf (for example if they decided to cancel a utility) we charge them a service fee to pay it on their behalf to motivate them to pay it themselves. Last thing we need is more bills to pay. Any future rent payment would first go to any outstanding utility bill before rent.

    I really like this and will add it to my lease terms, thank you! 

    0Reply
  • Joe SplitrockPro Member
    Moderator
    Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes
    10y

    @Nathan Waters I had a tenant years ago that had the same issue but with their gas bill. She owed a balance and couldn't transfer it into their name without paying the balance, which was large. I adjusted rent and included gas. I ended up collecting more money that way. It was not ideal, but the solution worked out well in the end. 

    I love how everyone likes to just say, "evict them". It is easy for random internet people to tell you to evict someone. Of course, they are not paying the bill or dealing with the mess.

    It sounds like you found a good solution. Good luck.

    0Reply
  • Nathan Waters
    OP
    Rental Property Investor · St Joseph, MI · Member since 2015 · 302 posts · 106 votes
    10y

    I did get all of this in a new lease. The new lease ends at the same date as her previous lease. I did not extend her for a full year. Just in case this doesn't work out, I don't want to deal with her for 12 full months. I know what you mean @Joe Splitrock. I was getting close to the point of giving an eviction notice, but my bottom line would be worse off if she stopped paying rent as well and I had to spend 4-6 months on an eviction. I think I can make this work. Thanks for all of the feedback from everyone. Its great to hear different opinions. I try not to be too lenient with the tenants and I think this struck a good balance. Like I stated before, her other utilities are all in her name and she hasn't had an issue with those.

    1Reply
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