How to Handle Utilities

Question

Hello everyone, I’m hoping someone can help me with my utilities questions. This is my first time landlording & I’m trying to figure out how utilities work. The tenant is paying them but are they in my name as the owner? Are they billed directly to the tenant? Are they sent to me & then I need to send it to them? Does it depend? Thank you!

Steve Morris · Answer

Check with your utilities.  If your tenant is paying, tell the utility to switch over the bill to them.

However, tell the utility you are the owner and you should be notified in case of no-pay and they want (for example) to shut off the power.  That gets kinda expensive to turn on/off the power.

Chris Mills · Answer

I agree that having utilities in your tenant's name is always preferred. I do know in some states certain utilities may have to be paid by the owner. Usually water. Make sure you check on that. Most of the time when I've kept the utilities in my name I've regretted it.

Aigo Pyles · Answer

As a landlord, the utilities should be put under your tenants name since they are responsible in paying the utilities. Why would you waste your time over billing and collection when you can simply put the utilities under your tenant's name? It will save you from troubles.

All the best!Aigo, Yourhome901

Percy Matsunaga · Answer

@Daniel Sabato

If possible I would have the tenant put the utilities in their names. This way the bill will go to the tenant and they can take care of it. if you live in a state where the tenant can not put utilities in their names then I would raise the rent to an approx amount of the utilities to cover.

Erik W. · Answer

I would do everything in my power not to be responsible for the utilities, especially in a lock down environment where a tenant can't be evicted.  Then you're getting hosed on rent and utils.

Call your utility company and ask.  Their policy may be different from mine.  Here we have a land lord account that utilities revert to when the property is vacant, but I require the tenant to transfer them into their name prior to handing over keys.  The utility company will email me once that is done, and if there are any problems (pending shut offs, transfers back to me) I also get an email.  Very handy system!

Bill B. · Answer

If the owner isn’t ultimately responsible anyway, then putting them in tenants name as a prerequisite to actually moving in is the way to go. If you are ultimately responsible anyway (in Las Vegas the tennant doesn’t pay, it doesn’t affect the owner. In North Las Vegas the tennant doesn’t pay a lien goes against the property.) then you could keep them in your name so you know they are being paid. Just make sure the lease spells that out or you won’t be able to collect them.