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Paul D.
  • Real Estate Investor
  • San Francisco, CA
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Tenant failed to change service into his name - now delinquent

Paul D.
  • Real Estate Investor
  • San Francisco, CA
Posted Aug 23 2016, 21:34

This is in Idaho.

My tenant moved in a few months ago and has been paying rent on time. Our rental agreement specifies that he is responsible for trash/sewer utility bills. When I noticed I was still receiving bills for the trash and sewer service in my name (the service is provided by the city), I kindly reminded him to change the service into his name and take care of the bill. He said he "thought that he took care of it" and that he would fix it as soon as he had a moment.

A few weeks later, when I received another bill, I emailed him again to remind him to change the service into his name.

Fast-forward about a month and I have received a notice from the city that the account has a delinquent balance that has been referred to a collection agency. I talked to my tenant about this and he says that he lost his job a while back and is working on catching up.

I know, I should have verified that service was in tenant's name before signing off on the lease, and I will be more careful about that next time. But what should I do now? Pay the delinquent balance as well as the current bill (both of which are in my name) and ask him to repay me once he has the funds? The city needs to hear it form the tenant before it switches service into the tenant's name.

Thanks in advance!

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