What to do when your tenant isn't paying the heating bill?

What to do when your tenant isn't paying the heating bill?

Greenville, NY · Member since 2016 · 3 posts · 1 vote

Hey Guys, 

This is more of a shower thought and thankfully hasn't happened to me yet , but I was wondering what should do as a landlord when your tenant is responsible for the utilities and decides to stop paying the heating bill in the winter (electric, gas etc). In addition are there anyways to be notified of this delinquency when the bills would be in the tenants name?

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Buy & Hold Owner · Redlands, CA · Member since 2015 · 5k+ posts · 2k+ votes
9y

If the utilities are in the tenants name, then you have no responsibility; another reason to offload these expenses.

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  • Investor · Northern, VA · Member since 2016 · 1k+ posts · 904 votes
    9y
    Originally posted by @Justin Smith:

    Hey Guys, 

    This is more of a shower thought and thankfully hasn't happened to me yet , but I was wondering what should do as a landlord when your tenant is responsible for the utilities and decides to stop paying the heating bill in the winter (electric, gas etc). In addition are there anyways to be notified of this delinquency when the bills would be in the tenants name? 

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  • Buy & Hold Owner · Redlands, CA · Member since 2015 · 5k+ posts · 2k+ votes
    9y

    If the utilities are in the tenants name, then you have no responsibility; another reason to offload these expenses.

  • Ryan MurdockPro Member
    Rental Property Investor · Austin, TX · Member since 2016 · 1k+ posts · 1k+ votes
    9y

    This is why I have been leaning recently towards including heat in my units - even the SFR's. Yes, it's more costly but I can generally charge enough rent to offset the added expense. Due to my volume discount on fuel purchases I often come out ahead as I can be very competitive with my "Heat included" rental pricing. This ensures the fuel never runs out and I don't have tenants dumping in questionably sourced fuel 5 gallons at a time at a time. I'm also protecting from my buildings freezing up and the pipes bursting due to the fuel being allowed to run out, intentionally or otherwise.

    Not sure about your local electricity provider but mine has a "landlord program". For all designated buildings the electricity can be turned on in the tenant's name but if for some reason they terminate service the account automatically changes to my name so the lights (and furnace) stay running.

    If you are doing any of this your buildings are better protected but it's even more imperative you remove a non-paying tenant as quickly as possible as not only are you losing rent you are also losing out on the utility expense. Risky, but overall I feel it may be a better method over the long haul.

  • Ryan MurdockPro Member
    Rental Property Investor · Austin, TX · Member since 2016 · 1k+ posts · 1k+ votes
    9y

    yikes....I wish we could at least edit our posts for grammatical errors for a longer period of time than allowed....note to self: proof read better.

  • Greenville, NY · Member since 2016 · 3 posts · 1 vote
    9y

    Thank you Ryan! That was exactly the kind of answer I was looking for. 

  • Investor · Monroe, WI · Member since 2015 · 691 posts · 610 votes
    9y

    Well in my leases I have a clause that the tenant must have heat and electric on at all times but likely the company wouldn't shut them off until April because they can't turn services off in cold weather in this area and then if they were to get shut off, I'd just issue a notice to comply.

  • Severna Park, MD · Member since 2013 · 7k+ posts · 7k+ votes
    9y

    Tenant is responsible for all utilities . If the electric is cut off , I have to evict , first to preserve the property , second the smoke alarms are electric with battery back up , but they chirp when the electric is off so they will disable them . Third my rentals are on wells , no electric , no water , they cant flush or drink or wash , health dept problems . 

    If you include utilities , it means abuse .  

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