Advice on Tenants in Property Just Purchases

Advice on Tenants in Property Just Purchases

Investor · Grand Rapids, MI · Member since 2016 · 12 posts · 4 votes

Hi Guys,

I just purchased a Duplex Property in Grand Rapids and I am looking for some advice in dealing with the current tenants. The duplex is separately metered for Gas and Electric and the lease existing with the tenants from the previous owner states the tenants are responsible for all utilities. The previous owner had all the utilities in his name including Gas, Electric, Water and Sewer, Internet, and Trash. When I took over the property I informed the tenants that we would be changing the process and all utilities would be in their names and paid directly by them to the utility provider. I am experiencing a lot of push back from the tenants, as they do not want to put the utilities in their name. I told them the lease states all utilities are the tenants responsibility. However, they argue that the precedent had been set for the landlord to have all utilities in his name even though this is not stated in the lease. 

Any thoughts or suggestions would be appreciated, as I am trying to avoid the hassle of paying all the utility bills and then having to bill the tenants back.

Thanks!

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  • Investor · Jenison, MI · Member since 2016 · 158 posts · 79 votes
    9y

    Hi Matt,

    I can not give you an "easy" fix but here are suggestions.

    This sound like the tenants cant get it in their name and the old owner did not do a credit check to make sure utilities were paid.

    1. send them a 30 day notice that states the terms of what you want from them in order to stay.

    2. You continue to pay the utilities

    a. have them pay a service fee to make it worth your time.

    b. just pay it and at the end of lease kick them out.

    Good luck, let me know if you need help with anything,

    Nick

  • Investor · Grand Rapids, MI · Member since 2016 · 12 posts · 4 votes
    9y

    @Nick Watkins thanks for the advice!

  • Kim Meredith HamptonBusiness Member
    Real Estate Broker · St Petersburg · Member since 2014 · 2k+ posts · 2k+ votes
    9y

    Matt, because the lease doesn't stipulate either way, I think a thirty day notice would suffice. Are their anything in your landlord tenant laws that would say otherwise? 

    You didn't state when their lease ends, if anything continue the same as the previous landlord. If you offer them a new lease, then spell it out and make them put in their own name 

  • Minneapolis, MN · Member since 2013 · 2k+ posts · 1k+ votes
    9y

    Cost to meter water separately is expensive and I doubt you'd change that .. 

    Internet is NOT a utility and you can stop that service any time.. if they want to get it they can. just have No Dishes clause so they can't attach them permanently to building..or you'll have holes all over your roof. So discontinue that service today. 

    Personally if it's in the lease as landlord you can contact the utility company download the start service form and fill it out and send it in for the tenant.. So I would do just that end of discussion. inform tenants those utilities will be service start to them immediately. 

    Water, Sewer / Trash removal should be easy to calculate and figure out so set rents to reflect on renewals.. Give tenants notice that any or large items that can't fit in the regular trash containers will be charge to them for disposal.  Watch the water meter and inspect for leaks,, I'd check the meter occasionally when your at the building to see if the dial is spinning when no one is home,, you'll know you have a leak then. Outside faucets turn off inside the building, no car washing or use for gardens.. 

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