3 Replies

Hello BC family,

I have 2 tenants that I am leasing my rental property to and they are having issues with getting their utilities turned on. One of the tenants that is on the lease has a bill due. Since she is listed on the lease, they will not turn on the utilities until the bill is paid in full. The amount due is extremely high and the tenant doesn't want to pay it.

Has anyone else had to deal with an issue like this before with your tenants? This information did not show up on her credit report. I need some suggestions, please!

We had all sorts of issues with utilities early on. We eventually started requiring tenants to give us confirmations for each utility before would sign the lease with them and give them the key. 

Here, probably the best option is to redo the lease where you increase the rent and you pay the electricity until they can get it over into their name. Or you could just tell them this isn't going to work and ask them to leave. 

@Andrew Syrios Thanks for the input. I have considered putting the utilities in my name, being that the VA pays for the primary tenants rent and all of his bills.

I'm guessing that the tenants have to have a lease before they can get lights, because the city requested the lease before setting things up.

It really depends, tenants can transfer their services from previous residence, and in that case a lease may or may not be required 

Also, putting the bills in your name may be myopic in my view.  It may solve the immediate issues, however it may be symptomatic of something greater.   I will be more concerned about leasing to someone who racks up the utilities bills and don't want to pay.  This is a red flag in my opinion.

Granted you will get your rent and their utilities paid by the VA every month but do you think these people will mindful about keeping up your property?

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

Lock We hate spam just as much as you

Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here