Water and electricity under my name and tenants not paying

Water and electricity under my name and tenants not paying

Member since 2018 路 49 posts 路 9 votes

I have a single family house with solar panel installed in California. So I have to be the one on the bill for the solar generated power. As far as water, tenants told me she signed up with the city to take over the water, but I just found out that the water is still under my name and two months of water bills are not paid. I had to pay for the power and water and send the bills (two months) to the tenant but no responses. She did pay the monthly rent though. I sent her several emails, texts but only one response saying she has a chaotic situation. I replied to her asking about the situation and  willing to work out something with her but still no response. What can I do in this situation? It's been about 2 to 3 weeks when I first contacted her. 

Thanks for your advise. Nina

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Handyman 路 Pittsburgh, PA 路 Member since 2018 路 5k+ posts 路 13k+ votes
5y

@Nina Ning

"Chaotic situation" is probably code for "I ain't got no money." You've got to get on this this and stay on it with phone calls and personal contact. You're probably not going to resolve a situation like this through emails and letters. Yes, you're chasing rent, or at least chasing utility payments. It's not fun at all.

@Mike Dymski has historically given very good advice and is a friend of mine here on BP. However, I would not cancel the water, as he suggests. That could land you in a jail cell here in PA. Not sure what the laws in California are.

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  • New to Real Estate 路 Worcester, MA 路 Member since 2021 路 63 posts 路 48 votes
    5y

    Are you using a landlord-tenant software? If you gave your tenant the option to set up an auto-pay that might be a win-win solution for both parties.

  • Real Estate Agent 路 Atlanta, GA 路 Member since 2020 路 1k+ posts 路 1k+ votes
    5y

    @Nina Ning does the lease address tenant payment of utilities or is this merely a verbal agreement? Does the lease include a clause about unpaid utilities? It should be clearly expressed/defined, "tenant is to register and pay for x utilities." If not, you may be in a tight situation. I would send another email or phone call informing her that she is in breach of the lease if she continues non-payment. If the water bill is still under your name, unfortunately, you are still responsible for those payments. If the situation progresses, sadly, you may have to take her to small claims court, which is just a hassle for everyone. Lastly, inquire about your local landlord/tenant laws for more guidance. Hope this helps. 

  • Member since 2018 路 49 posts 路 9 votes
    5y

    @Michael Dumler The lease states that tenant is responsible for all utilities.  One thing I didn't do is to have her show me the proof that she transferred the utility accounts. For water bills, even if it's under my name, if the tenant doesn't pay, the city will bill to the owner and will put a lien on the property if it's past due more than 60 days. I plan to knock on her door later today to see if I can talk to you in person.  Thanks for your advise!

    @Matthew Bowling we have ACH setup for the rent so she can use the same method to pay me the utilities. She is supposed to setup the payment with utility companies directly. But she didn't either way.  Thanks Nina

  • Investor 路 San Jose, CA 路 Member since 2015 路 246 posts 路 183 votes
    5y

    @Nina Ning In the future, if you can check with your local utilities, do so before the tenant takes possession. When I onboard new tenants, I provide them with a letter which includes information on who to call to set up utilities and that it must be set up for the date of the start of the lease.

    Ultimately, unpaid funds can come out of the security deposit, but you don't want to get into a situation where those funds are depleted in the event of damage at the end of the lease.  If you do talk to her in person, it is also important that you provide her with a demand in writing to pay what she owes according to the lease.

  • Investor 路 Las Vegas, NV 路 Member since 2013 路 8k+ posts 路 10k+ votes
    5y

    They should show proof of utilities before you hand them the keys. That bridge having been passed there鈥檚 a pretty easy process if you are sending them monthly statements/bills. 

    Show a running balance of their payment, minus their their utility bills, then show the rent and the amount still due. That way the amount not paid is rent not paid instead of utilities not paid. 

  • Real Estate Broker 路 Rochester Hills, MI 路 Member since 2009 路 2k+ posts 路 2k+ votes
    5y

    Clearly a lesson learned right?  As for your current situation you can call the water co and ask about getting an account set up in the tenants name and then ask if they will transfer the balance over to the new tenant account. They will require the tenant to corporate of course but that is an option.  May not work but worth a try.  Other than that, you should be adding the fees to the tenant ledger and then taking appropriate action.  Maybe a letter from your lawyer would help?

  • Theresa HarrisPro Member
    Member since 2019 路 15k+ posts 路 11k+ votes
    5y

    Hindsight is great, but you shouldn't hand over keys until you have confirmation that utilities are in their name.

    Set up a time for you to go to her place and talk to her.  Explain to her that even if things are chaotic, she needs to pay the utilities and she can pay the same way she does the rent, so it only takes her a few minutes to make the payment.  As Bill mentioned, tell her the funds you've received go to utilities and rent, so at this point she's behind $X on both rent and utilities.

  • Investor 路 Greenville, SC 路 Member since 2016 路 5k+ posts 路 13k+ votes
    5y

    Cancel the water...and prepare to pay it by 60 days if not paid.  We take utilities out of our name at move in.

  • Real Estate Broker 路 GA 路 Member since 2018 路 36 posts 路 10 votes
    5y

    @Mike Dymski charge it back ro the tenant ledger, and tenant must provide account numbers of established utility service. If its is plainy stated in the lease of the agreement for tenant to pay then I would not take next month rent payment without the water bill included. Also send them out a billing statement for the utility.

  • Handyman 路 Pittsburgh, PA 路 Member since 2018 路 5k+ posts 路 13k+ votes
    5y

    @Nina Ning

    "Chaotic situation" is probably code for "I ain't got no money." You've got to get on this this and stay on it with phone calls and personal contact. You're probably not going to resolve a situation like this through emails and letters. Yes, you're chasing rent, or at least chasing utility payments. It's not fun at all.

    @Mike Dymski has historically given very good advice and is a friend of mine here on BP. However, I would not cancel the water, as he suggests. That could land you in a jail cell here in PA. Not sure what the laws in California are.

  • Member since 2021 路 1 post 路 0 votes
    5y

    Perhaps, you can have her sign an agreement to pay half within the next week ie; notary- if she doesn't pay.  Start the eviction process because you can loose you home with outstanding utility bill with interest.

  • Investor 路 Greenville, SC 路 Member since 2016 路 5k+ posts 路 13k+ votes
    5y
    Originally posted by @Jim K.:

    @Nina Ning

    "Chaotic situation" is probably code for "I ain't got no money." You've got to get on this this and stay on it with phone calls and personal contact. You're probably not going to resolve a situation like this through emails and letters. Yes, you're chasing rent, or at least chasing utility payments. It's not fun at all.

    @Mike Dymski has historically given very good advice and is a friend of mine here on BP. However, I would not cancel the water, as he suggests. That could land you in a jail cell here in PA. Not sure what the laws in California are.

    Changed my mind...get Jim to cancel the water instead!

    Life is easier in the South where we transfer/cancel utilities at move in (and it works because there are no owner/resident utility issues like this post).  As Jim mentioned, CA may be very different.  Incidentally, this is not a complicated process...it takes people to make it a problem.

  • Theresa HarrisPro Member
    Member since 2019 路 15k+ posts 路 11k+ votes
    5y

    I had a tenant who was behind on rent and didn't pay the water. I had the water company send a notice that the water was going to be shut off if it wasn't paid.  It got them out of the house and the water was never turned off.  just the threat from the water company was enough.

  • Member since 2018 路 49 posts 路 9 votes
    5y

    Thanks everyone's advise! In California or at least the city I have that rental, whenever tenant doesn't pay the water bill, the property owner is responsible for the past due, and the city will put a lien on property if the past due is more than 60 days. So in this case, even the tenant transferred the water, I, as the owner, will end up footing the bills.  But definitely I'll want to see their account numbers before I hand over the keys next time! 

    I like the idea to add the utilities to the ledger and the money paid will go to utility first and rent, then send them the monthly statement.

    Some update after I stopped by the property this afternoon: I first rang the bells several times but no answer so I left the property. But before I got back to my car, i saw the daughter went into the property so I knew then there is people in the property. I went back and rang the bells again three times but still no answer. After I left again, I saw a text message from the tenant saying that they have COVID and are quarantining inside so they couldn't open the door. At least they are sending me something rather than radio silence to any texts, emails or calls. I then texted back telling her I  wanted to understand her situation and when she plan to pay the bills. She told me she will pay by Thursday and apologized on lack of communication. We will see if I get paid on Thursday.  But at least I got some responses.  Nina

  • Contractor 路 Calabasas, CA 路 Member since 2021 路 9 posts 路 9 votes
    5y

    @Nina Ning Hi Nina, Where in California is your property and what is the utility company? I own a couple of properties in California with both LADWP and with Edison and I always give the utility companies a cancellation date (in order to remove my name) of the next day of when the lease starts. Also with both those utility companies if the bill is on the tenants name you are NOT responsible for the bill , and i am saying this from experience.

    In your case the first thing i would do is cancel your account and remove your name.

    Good Luck

  • Deland, FL 路 Member since 2017 路 2k+ posts 路 1k+ votes
    5y

    I would post an eviction notice 

    But I am in FL

    I have a feeling in CA the situation is slightly more complicated 馃榾


  • Investor 路 Marin County California 路 Member since 2018 路 1k+ posts 路 2k+ votes
    5y

    In some jurisdictions (e.g., Monroe County NY) the water authority will not allow the landlord to transfer the service to the tenant's name.  Like California, unpaid bills get added to property taxes and if left unpaid will become a lien against the property.

    Screening is your only solution.

  • Will GastonPro Member
    Rental Property Investor 路 Columbia, SC 路 Member since 2010 路 1k+ posts 路 2k+ votes
    5y

    I know this won't help you for right now but it will help you in the future. Here's what we require prior to tenants moving in: 

    -Security deposit

    -First/last month's rent

    -Confirmation of water transfer

    -Confirmation of electricity/gas transfer

    -Renter's dec page

    FWIW all of the above came from a lot of the same lessons that you are learning on your rental. It gets easier once you know what to do.

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