what should I do. Detroit rental

Question

Just got a new rental property in Detroit. Had to spend the last month fixing it up and its all ready to go. My only question is what do I do about the utilities? I got the power and gas on but didn't bother to turn the water on. The current water bill is at $0. I know the plumbing is fine but I'm thinking about letting the tenant turn the water on, is this possible?? -Brandon

Eric D. · Answer

"Never include any utilities in the rent if the tenant can put them in their name."

If the utilities are able to be attached to the property, never let the tenant pay them.  Add in a reasonable figure to the rent and you pay it.  Adjust the amount later in the lease if they cost more than you expect.

I have never run across any tenant deliberately wasting utilities.  They may not be as careful with saving, but they have not been wasteful.

Andrew S. · Answer

Is it particularly expensive in Detroit to turn on water?  if you have never turned it on before, how can you be "99% sure" that all the plumbing is ok?  If there is a leak, its MUCH easier to fix it while the place is empty, so I don't know why you would take the chance on that just to save what?  20 bucks?

Joseph Abbott · Answer

That's the way to do it. Just have the tenants send you confirmation numbers from DTE and the Water Department after they transfer it. Then check with both companies.

Brandon Cook · Answer

@Joseph Abbott ok I guess ill turn the utilites on and have them transfer it into there name

Joseph Abbott · Answer

I've worked with Rental properties in Detroit, Mi. You always want to have the utilities on legally before tenants move in. Not having the Water on is giving them ammunition against you.

Turn the heat on for a few days. Have City turn on the Water from the front and turn it on in the house only a little bit. After you know it's on, have a plumber come by to make sure everything is working properly.

Thomas S. · Answer

Never include any utilities in the rent if the tenant can put them in their name. Tenants are extremely wasteful of anything they do not directly pay for. Insist of proof that all utilities, including the water, are in their name before you turn over the keys.

If the unit was previously rented recently the water is not an issue. Have the tenant turn it on in their name.

Brandon Cook · Answer

I guess ill just include the water in the rent. Do any of you know how much I should add on??

Phillip Dwyer · Answer

@Brandon Cook We typically require that the tenant provide proof of utilities being transferred to their name prior to occupancy.

Christian Hutchinson · Answer

Well...You have heat, if you are going to turn on the water.  This is a small cost that you can write-off anyway.  Most tenants check the water before they move in anyway.

Its a $150 for the water, and $100-150 for DTE to turn on the heat, so its 250 in total.

I would wait until mid-january so the renters will be available right now, unless you have a backlog of people looking your just throwing away money...If you could wait until Feb it might be even better.

In my exp, unless you have a rental near a college, Renters are not looking until after MLK Day, UNLESS we get some really nice weather the first half of January.

Brandon Cook · Answer

@Andrew S its not that its expensive its just that here in Detroit when you open a new aaccount they require you to put up a $150 deposit to have the water turned on. Plus the water was on about a month ago from the last tenant with no problems.

what should I do. Detroit rental

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