Electricity bill doubled with new tenants. Can we investigate?

Question

Hello BP folks! We have a 3-family rental in New York. 2 units have the same tenants for years. Other unit moved in in Sept 2020. Utilities are shared so we include them in the rent.

We're seeing this winter that the electric bill has doubled over what it typically is (it's now about $1000/month)–pretty much since the new unit moved in. This is especially strange because we installed solar last spring and anticipated at least some savings through the winter. We're wondering what's going on in there. We live out of state so can't just swing by. My elderly mother lives in the upstairs unit so she is onsite but can't just barge into the downstairs unit and doesn't have much of a relationship with them.

What are our rights to check in on this? I'd like to let them know our situation and ask them what's going on but I don't know what's allowed. Any insights from the forum would be appreciated.

Thank you!

michelle

Tracy Streich · Answer

Sure you can check on it.   Take an electrician with you when you go.   Give the proper notice and check it out.   You don't have to tell them you are checking the electric.   You want to see what is going on without them self correcting anything.

Steve Morris · Answer

What type of heat do you have?  If baseboard/Cadet, do they have a sofa shoved in front of the source?

Washer/dryer or electric hot water?  Maybe too many guests stopping/staying and taking showers and doing wash?

Maybe marijuana?  Grow lights use a ton of electricity :)

Thomas Wolfe III · Answer

They could be mining cryptocurrency on their computer. That would definitely run up your electricity bill by a lot.

Julie Hartman · Answer

I would definitely suspect grow lights but I manage in Colorado so we are always suspicious of that type of activity. We do quarterly furnace filter changes which gives us an excuse to enter the home (we can't search every room in this case) but we can peek at things and smell the air as we walk through. As an owner, you have every right to do an inspection of the house, you just need to follow the lease for notification to the tenants. If they are growing in there, you should be able to smell it. I would also keep an eye on the water bill because that will increase drastically if they are growing too. You could also ask your electric utility provider to do an energy audit for you. They should be able to tell you where the excess usage stems from.

Michelle Lyn · Answer

Thank you so much everyone! We have been considering splitting out the units. I'd like to go that route eventually. We ended up taking over the house a little while ago (mom went into foreclosure and so we bought out her debt and took over the mortgage) and so we're learning the ropes. We've been riding it out without a property manager knowing that the time is going to come and well... ta daaaaa. It's in the north Bronx so if anyone has referrals send 'em over (apologies if I'm supposed to post that in a different forum). Really appreciate all the comments and the chance to learn from you all.

Harriet Baldwin · Answer

Second the suggestions for finding a local manager to be able to help since you are out of town. One thing not yet mentioned - NY has mostly old-fashioned onsite meter readings (not remote), typically every second month. If a unit is vacant and then occupied, the algorithm may assume a month 2 actual read that is lower than the month 1 estimated read shows that the meter has "round tripped" (like a car going to 1 mile on the odometer after 99,999) - although that would be more like $3,000 than $1,000 higher ime. A call to the utility usually clears it up (it's happened to us a few times).

Martin Neal · Answer

@Michelle Lyn politely and respectfully ask that they manage their consumption and give tips on how to do so. It’s also a good idea to write into your leases that if they are going to overuse, you have the right to increase rent or bill back for excessive use.

Theresa Harris · Answer

Another vote for an inspection.  You can let them know the electric bill has spiked in the last few months and you need to check on things.

Mike S. · Answer

We had rodents get into our system and caused the heat pump to remain in emergency heat mode continuously, even when AC was running.

Amos Mainville · Answer

@Michelle Lyn

Where in NY?

Who manages the property since you are at distance? What is in your lease for inspections?

NYSEG just hit me with a bill that's triple my usage. Ended up being the meter reader read it wrong.

I would heavily consider getting the utilities split and put that on the tenant.

Amos Mainville

Chemung Valley Home Inspection LLC

Elmira NY

Electricity bill doubled with new tenants. Can we investigate?

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