Sharing Electrical Dispute Among Tenants - Need Resolution

Sharing Electrical Dispute Among Tenants - Need Resolution

Rental Property Investor · Saint Petersburg, FL · Member since 2011 · 46 posts · 5 votes

Good day BiggerPockets landlords. I have an increasingly disruptive problem at a property comprised of a main 2/1 home and a stand-alone studio behind it. Turns out the studio, which is attached to a one-car garage, all runs on the same electrical box. This was not addressed in our original home inspection in October of 2013 nor have we noticed or had any complaints about the problem. A few months ago, a new tenant moved into the studio unit. The garage (which includes a washer/dryer and an exterior light illuminating the backyard of the house) is rented to the tenant in the main home. The studio tenant complained (rightfully so) that the washer/dryer and the exterior light are running off of her electrical system. We immediately said we're so sorry, didn't know and said we'll address it. We've asked for the studio electrical bills and they promised to provide them (after saying they aren't that much) but we've received nothing. So, I've been waiting while trying to estimate the usage on a bulb and a washer/dryer, which the house tenant happily provided me (her type of W/D and bulb). I can't do anything until I have the bills in question on hand and talk to the electric company. I've told the studio tenant I will offer compensation and a plan going forward for compensation. Instead of cooperating, she called code enforcement so now we have a slew of other issues, none having to do with her complaint. Typical stuff they pick on like peeling paint, a missing screen (which tenants remove all the time) and things of that nature that don't affect the tenant's life and they haven't complained about. 

The studio tenant is insisting I make the house tenant stop using her light and W/D. I don't believe I can do that as it's in violation of the house tenant's lease. I'm trying to come up with a fair solution but can't when I don't know what the costs are. The studio tenant has aggravated the situation by calling code enforcement. 

I'm looking for advice/solutions to this problem. The most extreme and expensive would be somehow wiring the W/D and light all the way across the backyard of the house into its electrical box. Is that even doable? Are there other solutions to separate the wiring that are cheaper? My original route was to estimate costs, reimburse going backward and then reduce the studio rent by the estimated usage coming from the house. Again, they won't hand over the bills so this is a no go for now (maybe they will eventually). Also, the studio tenant is generally cantankerous, very rude to the house tenant and us and seems unhappy in the unit. I've offered to let her out of the lease, refund the electric and let us all go our separate ways but she refuses that option.

Any and all ideas/advice are appreciated. Thank you in advance!

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Rockaway, NJ · Member since 2016 · 2k+ posts · 2k+ votes
7y

My advice right now is to thoroughly document all your attempts to get the issue resolved. Save any communication you have.

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  • Rental Property Investor · Saint Petersburg, FL · Member since 2011 · 46 posts · 5 votes
    7y

    Thank you for your ideas and advice. There's some great stuff here, which I'm going to follow. Much appreciated!

  • Ned J.Pro Member
    Investor · Manteca, CA · Member since 2017 · 1k+ posts · 2k+ votes
    7y

    Splitting the electrical circuits and/or running monitoring equipment can be done, but as demonstrated by the calculation on the actual cost of the electrical draw of the dryer etc, its not worth the $$......at absolute best I would make some changes to the set up AFTER this person is gone, so I don't have to deal with the concern again...... no way am I dumping $$ into "fixing" this issue for a PITA tenant that is calling code enforcement on me.....accept the $15/month credit or move out.....

    I totally get the initial gut response of "hey they are using appliances that run off electricity that I pay for"!!!.... I get it..... but when you actually calculate the draw, the cost is tiny. If she can't see that once you lay out the actual #'s, its a tiny cost, then so be it......somehow I doubt that the calculation will appease her....

    Did you screen this tenant or just the daughter that is "renting it for her"?....... this wont be your last "issue"........this is a sign of a chronic PITA and just the beginning. I would state in writing multiple times that you are willing to let her out of the lease with zero penalty.

    Keep very detailed records of the communication and the issues of being abusive to the other tenants

  • Rental Property Investor · Saint Petersburg, FL · Member since 2011 · 46 posts · 5 votes
    7y

    @Ned J. You couldn’t be more correct. After careful consideration of everyone’s input (which you all took time out of your day to do) I decided to go with the $15 credit in arrears and moving forward and worry about “fixing” it permanently later when I don’t renew her lease. Guess what Ned? She wouldn’t take it. Told me her attorney needs to review it as we are stealing electricity from her mother and so the house tenant and we ourselves are liable. WTF? She insists that all she’s wanted is for us to make the house tenant stop using the bulb and washer dryer. I don’t think that fair to the house tenant; she rents those areas. It’s not her fault this is happening. Also, she told me she can’t give me the bills because her attorney hasn’t decided if we can have her mother’s personal information. I asked a month ago. Slow attorney I guess. The daughter rented the place for the mother but it seems there’s something she doesn’t want us to know. Either something about the bill or the mom or just wants to sue us. The daughter passed the screening with flying colors but I didn’t screen the actual mother as she’s not paying the bills and the lease is in the daughter’s name. DUMB DUMB DUMB I know now. This is ridiculous I’ve never encountered anything like it.

  • Theresa HarrisPro Member
    Member since 2019 · 15k+ posts · 11k+ votes
    7y

    @Kristen Watts

    Try calling the electric company as it is your property and asking for copies of the bills.  She knew the situation when the place was rented and it hasn't changed.  I forget when you said her lease was up, but hopefully it is soon.  Give her notice that her lease will not be renewed 30-60 days before it is up (depending on language in the lease and local laws).

    Ask her for her lawyer's name and contact info, so you can give it to your lawyer.  I'm betting she doesn't have one and is just using this as a delay tactic to make your life miserable.

  • Rental Property Investor · Saint Petersburg, FL · Member since 2011 · 46 posts · 5 votes
    7y

    @Theresa Harris I totally agree that’s what she’s doing. The electric company will not give me her bills I tried. She’s got 7 months of apparent hell for me left.

  • Theresa HarrisPro Member
    Member since 2019 · 15k+ posts · 11k+ votes
    7y

    @Kristen Watts  Good luck.  I'd send her a cheque for whatever amount you think is appropriate to cover the electricity for the washer/dryer.  Perhaps from your lawyer so there is a record.  What she chooses to do with it is her problem, but it shows you've tried to deal with the problem in good faith.

  • Rental Property Investor · Saint Petersburg, FL · Member since 2011 · 46 posts · 5 votes
    7y

    @Theresa Harris agreed. Thanks so much for your help. You’ve all contributed to helping me navigate this situation. Reminds me there’s good people out there when I feel like there aren’t due to this. It beats you down.

  • Colleen F.Pro Member
    Investor · Narragansett, RI · Member since 2013 · 8k+ posts · 4k+ votes
    7y

    The electric company should be able to give you the average electric bill for that studio unit even if they wont give you actual bills. Decide after you get it. It may be a tiny bill which is why she,wont produce it.

  • Rental Property Investor · Saint Petersburg, FL · Member since 2011 · 46 posts · 5 votes
    7y

    @Colleen F. good idea; I’ll call them now and try that.

  • Ned J.Pro Member
    Investor · Manteca, CA · Member since 2017 · 1k+ posts · 2k+ votes
    7y

    Yeah...her lawyer will deal with the situation.....yeah.......she aint got no lawyer that is going to deal with something like this...... even cheap lawyers will cost WAY more than she could recover for any form of "stolen electricity"

    I like to call their bluff on the lawyer threats....."you have a lawyer?....Fantastic...... give me their info and I'll have my lawyer contact them and they can work out the issue...... just get me their info....here's my lawyers contact information".....

    Let's for argument sake say she does..... ok..... she will have to prove how much the other tenant is "stealing from her"....... and the FACTS will be that on average its going to be about $15-25/month....... and you have make documented attempts to credit her for that....and documented attempts to offer her to break the lease with ZERO penalty...... DOCUMENTATION is your friend.....document EVERYTHING.....

    The big issue is that this tenant is going to poison everything for your good tenant and you are at risk for losing them, so I would be very upfront, honest and appreciative to them being understanding while you try to deal with the other tenant.

    Got a lawyer.....yeah..... that's good one lady.....

  • Rental Property Investor · Saint Petersburg, FL · Member since 2011 · 46 posts · 5 votes
    7y

    @Ned J. I’ve done all of the above except the contact my lawyer part. My other tenant just renewed her lease for another year even with an increase. She balances out this witch I’m dealing with. I refuse to speak with her via phone and only talk to her through text messages so it’s documented to the T.

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