Do you set utilities to revert to you when tenants move out?

Question

Hello BP community!

I'm excited that I'm closing on my first duplex next week in Grandview, MO (a suburb of KC).

I have two questions related to utilities.

First: Does anyone know if the Landlord is required to pay trash in Grandview? I've been out to the city website and couldn't find any information, but my real estate agent told me that it is. I looked at the lease for the tenant that is currently in place, and it isn't mentioned in their lease - so thought I would crowd source the question to folks out here that might know for sure.

Second: My property manager recommended that I only transfer the utilities into my name instead of setting them up to auto-revert. What say the community - anyone out there feel passionately one way or the other about what makes sense?

Thanks in advance for your input!

Karla

Alex Olson · Answer

@Karla Kahmeyer you can set up with both KCPL, Kansas Gas, BPU and Spire to have a landlord leave on contract that will revert back to you when the tenants have them shut off. I have not had any issues with tenants in this way. If they shut off what ever outstanding balance impacts their credit not you as a landlord.

Ahmed Mohamed · Answer

@Karla Kahmeyer Congratulations!!! I'm interested to know more details on this deal you closed, if possible. I'm new to investing in the KC area and I could learn a thing or two from your experience :)

Karla Kahmeyer · Answer

Thanks  @Alex Olson. I ended up not setting it up to auto revert this time, since we filled the vacancy very quickly, but an still keeping my mind open to what might work best over the long run. I'm only a few months into being a property owner with renters, so am trying to figure out my long-term processes.

Karla Kahmeyer · Answer

Thanks to you both. Given KC has a tendency it get cold in the winter, (cold enough for frozen pipes) I think I'm going with the revert approach - but wanted to gather input from others.

Appreciate the assist!

Karla

Billy Smith · Answer

The reason for not going to auto set is a tenant not paying the bill then the utility is shut off then put into your name.

Then you are paying the bill for the utility.

Gio Gonzalez · Answer

@Karla Kahmeyer

Congratulations on your closing!

Regarding utilities, i think it depends. I have a PM that changes utilities to their name after tenant moves out. And I have another where I have a “landlord reversal” where it switches to my name after tenant moves out.

Do you set utilities to revert to you when tenants move out?

Most Popular Reply