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

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

Rental Property Investor · Los Angeles, CA · Member since 2009 · 22 posts · 12 votes

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.

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Rockaway, NJ · Member since 2016 · 2k+ posts · 2k+ votes
7y
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.
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  • Investor · Tampa, FL · Member since 2016 · 679 posts · 288 votes
    7y

    Hello Brian, The history of this goes back twenty years to the Mayor Ferlita when they admitted that they could not read all the meters in the City every month. What they do is to get the first one or two bills and then that is what they will charge you for months at a time when they don't read the meters. After Ferlita the next two Mayors made an affort to put on a couple more meter readers and it became apparent that the Utility Department and the Solid Waster Department were not making any money. They tried to go private with Solid Waste for a year and it was a mess and went back to the City. They refused to give notice to late Utility or Water bills for many years and not if you are one day late you get a yellow notice. But, you could be behind lots of money if they just then read the meter and added up what they did not charge and this month is late and you are moving out and will not pay the next month as you are being evicted etc. I had one that was six months late and they moved and were not charged. That you were current when you closed does not matter. That means that the mess that is happening starts there. Mine were up to five years in arrears and the Statute is 48 months and they still want to see if I am so stupid as to bend over and pay the thousands of back water bills from deadbeat tenants in Tampa. Remember, everybody I had in the 2008 Crash of our Economy lost their JOB's in two days or were cut back on hours at MacDonalds or would not pay this months rent to save for a Deposit for the move. I had two Evictions a week for months. So, starting from today you still have to contact the one lady who takes care of these records. She will send you the name and address and amounts owed and dates that they were not paid. Then, you match that up to a signed Lease  and put them in a list and call her to send that list with the copies of the Leases and show that the bills are not yours and you have proof that you were not living there or in possession. If they moved and you did not change the bill then you owe those days when you left the water on to clean up the apartment etc. If the lady does not move then call her manager and set up a conference call with your Rental Manager or Lawyer. They have to take off what is proven to not be your use of the water. OK? If not get back and maybe we can email or talk. Michael

  • Rental Property Investor · Los Angeles, CA · Member since 2009 · 22 posts · 12 votes
    7y

    @Michael Haynes  Thank you for your valuable time and information.  Wish me luck.

  • Investor · Tampa, FL · Member since 2016 · 679 posts · 288 votes
    7y

    Hello Brian, they just announced this week that patching the 100 year old water mains in Tampa is not possible anymore. They are going to raise all water bills by the end of this year and begin to replace ALL WATER LINES in the City. That will be a huge mess that will last for ten years. Are you aware of the Hidden Red LIne Properties that are on a map with the Public Works Department? They have been keeping records of complaints of flooding in the yards for years. If enough complaints are made then that address goes on this hidden Red Line List. When you Sell the property if the next person wants to demo and build anything larger than the old footprint...the City will not allow it unless the New Owner pays to Mitigate the Flooding problem with a Retaining Pond, Connecting to a Canal, Storm Sewer or other means. The City knows that the properties South of Kennedy Blvd. are all three feet above Mean High Water Level and there is no way to pump the water out of the streets which are our open Storm System in a Hurricane or Flooding Rains. I have a CG half acre on 6305 S.  Roberts and Mango with a 3/1 that I have had For Sale for a time. It is good to build 10 Town Homes. The City says that the lots have to be built up 18 inches above the center line of the Street to build. Obviously the reason is that they want the Street to become the open Storm Drain to the Bay and keep new constructions up some out of the flooding water in the street. In esscence the New Constructions become the Water Shed points. That presents a problem for runoff for your neighbors on the lower levels etc. But, that is their Plan. There was an article in the paper that you can Google, a couple months ago detailing one ladies problem for a tear down that she wanted to build out bigger and got stopped by this Red Line List which won't allow it.  You can go to the Public Works Dept. site and find this list and Map in red. So, Good luck. 

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