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Rob Jones
  • Rental Property Investor
  • Raleigh, NC
59
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109
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PM Company Making me Pay the Utility Bill

Rob Jones
  • Rental Property Investor
  • Raleigh, NC
Posted Jun 24 2019, 14:00

Hello BP,

I'm in a situation that I'd like to hear from other owners on.  The PM company I use placed a tenant in one of my properties with a lease start date of May 1st, 2019.  The PM company told me everything checked out on the background check so they were approved to move in.  All good things.  Long story short the tenant moved in and never paid another dollar.  We started the eviction process during the middle of this month.  I understand stuff like this happens...it's part of owning rentals.

The issue I'd like feedback on pertains to the tenant's utility bill.  Upon move in either the PM company or the utility company did not switch the utilities into the tenant's name.  Needless to say this tenant ran up a huge utility bill(over $200) and my PM company saddled me with that bill.  They went as far as to taking the money out of rent I received from another property to pay for said bill.

My question to the group is....is this my bill to pay?  Am I wrong for requesting this money be refunded to me from my PM company?  The way I see it, either the PM company dropped the ball in making sure the tenant had the utilities in their name or the utility company dropped the ball in changing it in a timely manner.  Either way...I am not at fault here and I see it as being very unreasonable that my PM company make me pay.

Side note---By default, whenever a property turns over the utilities get placed in the PM company's name. This bill was not in my personal name or my LLC's name.

I'd love for anyone to either validate my perspective or provide me with a new one.  Thanks in advance!

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