Tenants didn't pay their utilities, now properties liened.

[Brian Crowe]

I recently purchased 5 duplexes in Tampa, FL. All leases state clearly tenants pay all their own utilities. (these leases where in place when we purchased) Seller confirmed tenants pay all their own utilities. All separate electric and water meters. We called City utilities and verified water accounts in tenants' names. Never put any accounts in my company name. Never received ANY correspondence from City utilities about non-payment. Investment plan was to whole-tail properties. We purchased off market, light clean up of units, addressed tenants immediate issues, had our management get things organized, remove bad tenant etc. We went to sell and the City put over $6000 in outstanding water bills for 6 of the 10 units as upcoming liens on the properties and now showing on HUD as expense to Seller(now us). Anyone dealt with this? Remember: we have written leases signed, stating tenants pay all utilities. We never adjusted their accounts etc. We never received any notices of non payment of water. City never turned off any water. This was all over 6 months in Tampa, FL. How can the City just lien my properties because tenants don't pay their water bills? It'd be like Ford liening my property because tenants didn't pay their car payment...?? We're in process of ordering docs from City of Tampa providing the information and history of these accounts to show that the tenants opened the accounts and didn't pay water. The $6000+ being held back in escrow until resolved. Can we be responsible for these amounts? Oh, and we purchased through lender and received clear title and insurance policy upon purchase. There was no outstanding water bills at our purchase.

[Andrew B.]

Unfortunately many areas consider the water bill to be an account that runs with the property. Why? because its the government's money and goddamn they will get it.

In that situation, you are ultimately responsible for the water bill, with the ability to seek reimbursement from the tenant on your own. Of course, this is a great learning situation as you now know that your future due diligence should include confirming that the water bill is paid up before purchasing.

I'm sorry that this does not help you now. Likely your only recourse is to get an attorney to go after all 6 tenants. (You may have more leverage if they still live there. Your post was unclear.)
You can also contact the water company and plead with them for some sort of settlement.