All
Members
Companies
Blog
Forums
Podcast
Webinars
    User Log in  /  Sign up
  • Forums
    Newest Posts Trending Discussions Followed Forums Real Estate News & Current Events General Landlording & Rental Properties Buying & Selling Real Estate Deal Analysis See All
  • Education

    Read

    BiggerPockets Blog BPInsights: Expert Analysis Guides Glossary Reviews Member Blogs

    Watch

    Webinars Video Library Financial Independence Blueprint Intro to Real Estate: Rentals

    Listen

    BiggerPockets Real Estate Podcast BiggerPockets Money Podcast BiggerPockets Business Podcast Real Estate Rookie Podcast Daily Podcast (Audio Blog)

    Topics

    Business Operations Finance Finding Deals Property Management Property Types Strategy
  • Network

    Recommended Vendors

    Real Estate Agents Mortgage Lenders Hard Money Lenders Insurance Contractors Investment Companies Build Your Team

    Search

    Members Events Jobs
  • Tools

    Calculators

    Rental Property Fix and Flip BRRRR Rehab Estimator
    Wholesaling Mortgage Payment 70% Rule Airbnb

    Services

    BPInsights: Property Insights Tenant Screening Property Management Lease Agreement Packages

    New Feature

    BPInsights (beta)

    Quickly analyze a property address or ZIP Code to compare your rent in your neighborhood.

    Analyze a property
  • Find Deals
    Real Estate Listings Find Foreclosures External Link Ads, Jobs, and Other
  • Bookstore

    Real Estate Books

    Profit Like The Pros Bidding to Buy See all books

    Featured Book

    BiggerPockets Wealth Magazine book cover
    BiggerPockets Wealth Magazine

    Written by financial journalists and data scientists, get 60+ pages of newsworthy content, expert-driven advice, and data-backed research written in a clear way to help you navigate your tough investment decisions in an ever-changing financial climate! Subscribe today and get the Oct/Nov issue delivered to your door!

    Get the Magazine
  • Pricing
Log In Sign up
User
Quick search links
Podcast Hard Money Lenders Books Washington
ForumsArrowGeneral Landlording & Rental PropertiesArrowTenant Drama - Unpaid Utility
  • Newest Posts
    • Newest Posts
    • Unanswered Discussions
  • Trending
    • Top Discussions
    • Trending Discussions
  • Browse Forums
Search Nova
Create post

Tenant Drama - Unpaid Utility

5 Replies

  • Share on Facebook
  • Share on Twitter
  • Share on LinkedIn
Rotate Log in or sign up to reply
user profile avatar
  • Posts 4
  • Votes 2

Danny Minhas
from Edison, New Jersey

posted over 3 years ago

I recently purchased a 2 unit MFR in NJ. My first MF purchase; and hopefully, not my last. My family lives in 1 unit, and I have rented out Unit 2 to a family that gets SSDI, plus rental assistance from an agency called Alternative.

Long story short, tenants pay for their utilities, and are on a M2M lease.  I have a separate meter for electric & gas, and the water is divided based on percentage.  Usually I would provide a copy of the water bill, with explanation of the breakdown of the costs.

The last 2 months they have elected not to pay the water bill. 

My lease states that the tenant is responsible for those utilities, but I do not have any wording that states unpaid utility can be treated as unpaid rent.

Additionally, I've had some issues with the tenants.  Generally it's due to the loud bass coming from their car stereo system.  The most recent was when a verbal altercation occurred with my wife.  My wife usually stays out of the matter, but she lost her cool.....

Just before Thanksgiving, I gave the tenants a 30 Day Notice of Non-Renewal.  Their agency, Alternative, asked for an extension to mid-January or later because they have located a new apartment for the tenants, but it will not be ready till Feb 1st.  Originally, I gave them to Jan 5.  The case worker informed me that regardless of the 30 day notice, I still have to file eviction. 

I am aware of this, but due to the most recent altercations I decided to accept the tenants till Jan 31.  The Case Manager (to make the peace) also added additions such as their car is not allowed on the premises and the tenants must be respectful of inside noise after 10pm.  The case manager and I came to a verbal agreement, and I wrote an email to her and her manager confirming the agreement.  I am in process of waiting for it to come in writing.

Additionally, one of their kids damaged my garage.  The damage was minor and only $150 to repair.  The kid has a part time evening job and he pays me about $20 every 2 weeks.  He still owes me $100, and hasn't paid me the last 4 weeks.  The tenants also owe me $150 in back pay for a non-refundable pet deposit.  They have paid $250 of the $400 that I charged. 

My concern is, I have zero faith the tenants will move out on Jan 31. Should I proceed to start an eviction process based on the fact that the tenants are in violation of breaking the lease, which is they haven't paid their water bill and take out the rest of the money owed from the security deposit? or is there something else I should be doing. 

Rotate Log in or sign up to reply
user profile avatar
  • Posts 570
  • Votes 447

Eric H.
Real Estate Solutions Provider from Baltimore, Maryland

replied over 3 years ago

@Danny Minhas Greetings and welcome to BP!

I would say start the eviction process now. If they are out by the end of the month, no harm, no foul. If they are not, and you have not started the eviction process you are now 30+ days behind.

I wish you the best! Peace!

Rotate Log in or sign up to reply
user profile avatar
  • Posts 2.1K
  • Votes 1.5K

Kim Meredith Hampton
Real Estate Broker from Orlando, FL

replied over 3 years ago

Danny,

Can the case worker assure that they have another rental, have signed a new lease and that will vacate on or before Jan 31st?

If not, I would file for eviction 

Rotate Log in or sign up to reply
user profile avatar
  • Posts 220
  • Votes 96

Anna M.
Investor from Denver, Colorado

replied over 3 years ago

The utilities, is something I always put in my leases and they are infact included with the basic rents.  Any amount not paid will be assessed a late fee and the late fees are also spelled out in my lease.  I do not know that you can use this as grounds to evict if you were not clear.  That being said, they are on a month to month so how about you just not renew?  Give them a 30 day notice of non-renewal and call it good.  If they try to fight you start eviction proceedings and just do not collect any rents from them and do not (including your wife) engage them.  Tenants can try to push your buttons and you will need to be extremely careful when dealing with them once an eviction process has been initiated.  As far as deduction from security deposit, that is something I suppose you could do.  On the next lease, be sure to include utilities as part of rent and do not collect separately, I collect under one ledger and my payments are made online which also makes it easier for me to stop receipt of rents should I start eviction process.

Rotate Log in or sign up to reply
user profile avatar
  • Posts 257
  • Votes 222

Shaun C.
from Royal Oak, Michigan

replied over 3 years ago

Personally, I would never want to share a residence with people that can't foot the bill themselves. The area you are in might warrant it, but if you can; I would try and rent the unit to someone that can pay rent on their own and you might (and probably) will avoid situations like this in the future.

Rotate Log in or sign up to reply
user profile avatar
  • Posts 4
  • Votes 2

Danny Minhas
from Edison, New Jersey

replied over 3 years ago

All valid and good points.  Thank you friends.

I will be looking to reach out to a lawyer to begin eviction process as a backup. 

Additionally I will update the Master Document of the Lease to include unpaid utilities is equivalent to unpaid rent. 

Can't thank you all enough.

Rotate Log in or sign up to reply
  • 1
Related Resources General Landlording & Rental Properties
6 Tech Tools That Make a Landlord’s Life Easier
Turtle Soup in the Kitchen Sink — Or, Why You Shouldn’t Skip Yearly Rental Inspections
What Is Rent Control—And Is It Bad for Landlords? (Updated 2021)
How to Choose a Management Company for Multifamily Properties
Trouble Collecting Rent on Time? Try Flexible Rent Payments
Resources Read, see, and learn more!
Link Real Estate Investment Calculators
Link BiggerPockets Blog
Link Path to Purchase
Link Mortgage Loans
Link Find a Contractor
Link Real Estate Agents
Link Hard Money Lenders
Link Real Estate Listings

Top Contributors

Nathan G.
Nathan G.
Cody, WY
9.76
Score
Joe Splitrock
Joe Splitrock
Sioux Falls, SD
2.15
Score
Greg M.
Greg M.
Los Angeles, CA
1.97
Score
Mike Baxter
Mike Baxter
Somewhere in the Scorching Heat of AZ
1.76
Score
Bjorn Ahlblad
Bjorn Ahlblad
Shelton, WA
1.48
Score

General Landlording & Rental Properties Trending Discussions

  • 2 unit property lawn care maintance (bottom and top)
    32 Replies
  • PM asking for money.....
    33 Replies
  • Tenant had a stroke and is hospitalized
    13 Replies
  • Used heloc for down payment. Is the interest tax deductible
    5 Replies
  • Seeing cash flow opportunity markets--please be specific
    4 Replies
Log in Sign up

Log in

Forgot password?

If you signed up for BiggerPockets via Facebook, you can log in with just one click!

Log in with Facebook

Or
btn_google_dark_normal_ios Created with Sketch. Continue with Google

Let's get started

We just need a few details to get you set up and ready to go!

Use your real name

Use at least 8 characters. Using a phrase of random words (like: paper Dog team blue) is secure and easy to remember.

By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.

Or
btn_google_dark_normal_ios Created with Sketch. Continue with Google

Why create an account?

Receive a free digital download of The Ultimate Beginner's Guide to Real Estate Investing.

Connect with 1,000,000+ real estate investors!

Find local real estate meetups and events in your area.

Start analyzing real estate properties, we do the math for you.

It's free!

Explore

  • Membership
  • Community
  • Education
  • Marketplace
  • Tools
  • FilePlace
  • REI Resources
  • Perks
  • Glossary
  • Reviews
  • iOS App
  • Android App

Company

  • About Us
  • Press
  • Advertising
  • Careers
  • Stats
  • Contact Us

Important

  • Editorial Guidelines
  • Terms of Use
  • Rules
  • Privacy
  • FAQ

Social

  • Facebook
  • Twitter
  • YouTube
  • Instagram
© 2004-2021 BiggerPockets, LLC. All Rights Reserved.