I'm working on getting my first property ready for rent in west Cleveland, and I'm wondering how to handle the water bill. I know in some cities it's paid by the tenant but in others it's paid by the landlord. How is it handled here? If you pay water, do you bill it to your tenants?
It's really the landlord's preference, but the water bill is the one thing that the landlord can be chased for if the tenant doesn't pay it, so most landlords prefer to handle it themselves.
Most of my rentals are in Bedford, which has an astronomical city-imposed $52 minimum water charge per unit per month. I pay it, and I bill the tenants for anything that's over the minimum. It really takes a lot of water usage to go over the minimum. Best of all worlds for me - I know it's being paid, I've got a consistent charge to budget for, and the tenants still have motivation to let me know that the toilet's running.
It's really the landlord's preference, but the water bill is the one thing that the landlord can be chased for if the tenant doesn't pay it, so most landlords prefer to handle it themselves.
Most of my rentals are in Bedford, which has an astronomical city-imposed $52 minimum water charge per unit per month. I pay it, and I bill the tenants for anything that's over the minimum. It really takes a lot of water usage to go over the minimum. Best of all worlds for me - I know it's being paid, I've got a consistent charge to budget for, and the tenants still have motivation to let me know that the toilet's running.
@Tyler D. If it is a two family, try to add some provision to the lease that requires tenants in each unit to pay a stipend such as $50 per month toward water. I have only had one tenant refuse. Know, that the courts will typically not enforce this debt in an eviction hearing... but the goal is to have the tenants take some responsibility.
If it is a SFR, make the tenants pay. If you are managing the property yourself, pay the water bill and post it to the tenant ledger. Or, you can have the water bill mailed directly to the house, and have the tenants pay. Then, all you have to do is go to your myclevelandwater account to make sure it got paid.
Best of luck
Buy SFR and pass it onto the tenants
in MF LANDLORDS will always pay for it as it's too difficult to point the finger at whom is consuming what amount
In Texas, particularly if it's SFR, all expenses are passed on to the renter. It's much easier to manage this way.
@Tyler D'Alessandro this was such a headache when I owned a rental in Cleveland. I can’t stress that enough. This was a major headache.
@Tyler D. If it is a two family, try to add some provision to the lease that requires tenants in each unit to pay a stipend such as $50 per month toward water. I have only had one tenant refuse. Know, that the courts will typically not enforce this debt in an eviction hearing... but the goal is to have the tenants take some responsibility.
If it is a SFR, make the tenants pay. If you are managing the property yourself, pay the water bill and post it to the tenant ledger. Or, you can have the water bill mailed directly to the house, and have the tenants pay. Then, all you have to do is go to your myclevelandwater account to make sure it got paid.
Best of luck
It's a SFR.
Not sure what the tenant ledger is as this is my first property. Do you have them pay it as part of the rent, or a separate payment?
I'm working on getting my first property ready for rent in west Cleveland, and I'm wondering how to handle the water bill. I know in some cities it's paid by the tenant but in others it's paid by the landlord. How is it handled here? If you pay water, do you bill it to your tenants?
If it's a single family you can pass the bill to the tenants. If it's multi family typically the landlord pays.
I'm working on getting my first property ready for rent in west Cleveland, and I'm wondering how to handle the water bill. I know in some cities it's paid by the tenant but in others it's paid by the landlord. How is it handled here? If you pay water, do you bill it to your tenants?
If it's a single family you can pass the bill to the tenants. If it's multi family typically the landlord pays.
Alright.
Do you put the water in their name or keep it in yours and send them a bill?
It goes in the owners name as typically requested by the water company.
In special cases it can go in the tenants name.
Bob
The place I rented had it added to our monthly rent. So instead of the 850 rent they would add the total water charges divided by the number of units and bill each person equally. In my case it was usually 25-35 dollars each month. Honestly it wasn't that big of a deal to me. You could always increase the rent to cover it too. If you know the water bill is say 50 dollars. Instead of the rent being 1000 make it 1050. You can let the renter know the cost of water is included in rent.
@Tyler D'Alessandro
If it’s multi family put water meters in. Our town bills once a quarter, I read the meter and bill accordingly.
I sold an investment property recently where $70/month was added to rent. Total water sewer was added up annually and then settled up- either tenant owed landlord (based on 12 punts @ $70) or vice versa. I give my tenants $75/month allowance and bill them monthly for anything over that. Think I’m going to convert to annual method. My method works fine it’s just a bit of a hassle to track and generate a statement every month.
If you can pass the cost on to the tenant then that is the best option. Make sure it is covered in the lease. But honestly, one of the best things you could do is go talk with the municipality you are buying in. I work for the City I live in and I can tell you it would build a lot of credibility if you go into the office and introduce yourself and explain that you are a new landlord looking to be a good landlord and have questions about best practices.Water bills are handled differently in every municipality so it would be worth a conversation with them to see what they recommend. Here in my City it is easy to separately meter small multifamily properties and require the tenant to be responsible for the water bills.
If I had to be responsible for the water bill as a landlord I like the idea mentioned above of paying the minimum water bill and billing anything above back to the tenants; it still incentivises them to keep an eye on their consumption. Just put it in writing and do a good job of documenting and keeping track of everything.
@Tyler D'Alessandrojust put it in their name and make sure they pay it. That's the easiest and most common path for SFR. If you have an issue you can always change course later. But since it's your first property I'd recommend keeping it simple. Good luck!
I'm working on getting my first property ready for rent in west Cleveland, and I'm wondering how to handle the water bill. I know in some cities it's paid by the tenant but in others it's paid by the landlord. How is it handled here? If you pay water, do you bill it to your tenants?
What do to about the water bill? Never ending question here in the Cleveland market because there isn't an easy answer. Below is taken directly from my company's FAQ. This is what we feel is the best way to handle it and why.
Q. I would like to charge the tenants for water and sewer. Will you bill my tenants?
A. No. The City of Cleveland, Division of Water will not pass water and sewer charges onto any individual other than the property owner. The water and sewer bill will ALWAYS remain in the Owner’s name therefore the ultimate responsibility of the water and sewer bill will ALWAYS fall onto the Owner.
See http://www.clevelandwater.com/customer-service/faq for more info.
Holton-Wise does not charge the tenants for water and sewer usage because of all the legal difficulties put in place by Ohio Landlord Tenant Law and the City of Cleveland, Division of Water. Holton-Wise recommends building water and sewer costs into the rental price because evicting for non-payment of a utility that is not in the tenants name is much more difficult than evicting for non-payment of rent. If the Owner wants to pursue an eviction case against a tenant for non-payment of water and sewer bills The Holton-Wise Property Group will have to refuse all future rental payments from the tenant and that Holton-Wise DOES NOT guarantee victory in any court case. Odds are very good that the Owner may lose the case. In the event of a lost eviction proceeding Holton-Wise will still bill the Owner for the normal eviction costs.
5321.04 Landlord obligations.
(A) A landlord who is a party to a rental agreement shall do all of the following:
(1) Comply with the requirements of all applicable building, housing, health, and safety codes that materially affect health and safety;
(2) Make all repairs and do whatever is reasonably necessary to put and keep the premises in a fit and habitable condition;
(3) Keep all common areas of the premises in a safe and sanitary condition;
(4) Maintain in good and safe working order and condition all electrical, plumbing, sanitary, heating, ventilating, and air conditioning fixtures and appliances, and elevators, supplied or required to be supplied by the landlord;
(5) When the landlord is a party to any rental agreements that cover four or more dwelling units in the same structure, provide and maintain appropriate receptacles for the removal of ashes, garbage, rubbish, and other waste incidental to the occupancy of a dwelling unit, and arrange for their removal;
(6) Supply running water, reasonable amounts of hot water, and reasonable heat at all times, except where the building that includes the dwelling unit is not required by law to be equipped for that purpose, or the dwelling unit is so constructed that heat or hot water is generated by an installation within the exclusive control of the tenant and supplied by a direct public utility connection;
(7) Not abuse the right of access conferred by division (B) of section 5321.05 of the Revised Code;
(8) Except in the case of emergency or if it is impracticable to do so, give the tenant reasonable notice of the landlord's intent to enter and enter only at reasonable times. Twenty-four hours is presumed to be a reasonable notice in the absence of evidence to the contrary.
(9) Promptly commence an action under Chapter 1923. of the Revised Code, after complying with division (C) of section 5321.17 of the Revised Code, to remove a tenant from particular residential premises, if the tenant fails to vacate the premises within three days after the giving of the notice required by that division and if the landlord has actual knowledge of or has reasonable cause to believe that the tenant, any person in the tenant's household, or any person on the premises with the consent of the tenant previously has or presently is engaged in a violation as described in division (A)(6)(a)(i) of section 1923.02 of the Revised Code, whether or not the tenant or other person has been charged with, has pleaded guilty to or been convicted of, or has been determined to be a delinquent child for an act that, if committed by an adult, would be a violation as described in that division. Such actual knowledge or reasonable cause to believe shall be determined in accordance with that division.
(10) Comply with the rights of tenants under the Service members Civil Relief Act, 117 Stat. 2835, 50 U.S.C. App. 501.
(B) If the landlord makes an entry in violation of division (A)(8) of this section, makes a lawful entry in an unreasonable manner, or makes repeated demands for entry otherwise lawful that have the effect of harassing the tenant, the tenant may recover actual damages resulting from the entry or demands, obtain injunctive relief to prevent the recurrence of the conduct, and obtain a judgment for reasonable attorney's fees, or may terminate the rental agreement.
@Gwen Fyfe @James Wise @Bob Collett @Federico Gutierrez @Anthony Rosa @Don Petrasek
I'm facing this dilemna now in Cleveland with an SFR I have as well. The water bill has jumped significantly with a tenant there....the water bill was ypically about $60/mo for them and then 3 months ago it went up to about $80. 2 months ago it jumped up to $160! My PM went out there to see wat was going on and it turns out there was a leak so they fixed the leak.....Cost $600. Then I saw the water bill for this month AFTER the leak was fixed....$330.00!!! At this point I am contemplating a couple of things....
1. I have already requested the PM go out there AGAIN to see what in the world is going on and see if there is another water leak.
2. Raise the rent. As an FYI, I inherited these tenants when I bought the place over a year ago so a rent increase could be due anyway.
3. Since the tenants are on a month to month lease, ask my PM to present the tenants with a new lease that is also month to month that states that they will now be responsible for water and sewer. As I understand it I will still need to keep the water and sewer in my name, but I can (try to) pass this on to the tenants by literally forwarding the bill to them when I get it.
4. If the tenants refuse to sign the new lease that I have my PM offer them, should I simply tell them that I am now giving them 30 days notice that I am simply not renewing their month to month lease? These water bills are literally making me go cash flow negative and I certainly can't keep this going.
Thoughts?
@Brian Garlington I'd have the PM notify the tenants right now that if the water bills continue to be high, changes will need to be made to give them responsibility for it. With a month to month tenant you have the flexibility to make those changes, at least, but just threatening it might get the water use under control. It's hot as hell out here this summer, maybe they're running a sprinkler all the time or filling up paddling pools for their kids every day. They might knock it off if they know they'll have to start paying for it. Or they might start taking you seriously when you say that you need to know about any leaks, drips or running toilets. Let them know that, see what the next bill is like, go from there.
If you do make changes I'm very fond of my system of paying a reasonable bill and invoicing for anything over that. Maybe say you'll pay the first $70-$80, and they will be invoiced for anything over that. Explain that if they don't pay the invoices they can be given their 30 day notice to move. It's a pretty reasonable setup, tenants are usually accepting as long as it's explained well.
@Gwen Fyfe @James Wise @Bob Collett @Federico Gutierrez @Anthony Rosa @Don Petrasek
I'm facing this dilemna now in Cleveland with an SFR I have as well. The water bill has jumped significantly with a tenant there....the water bill was ypically about $60/mo for them and then 3 months ago it went up to about $80. 2 months ago it jumped up to $160! My PM went out there to see wat was going on and it turns out there was a leak so they fixed the leak.....Cost $600. Then I saw the water bill for this month AFTER the leak was fixed....$330.00!!! At this point I am contemplating a couple of things....
1. I have already requested the PM go out there AGAIN to see what in the world is going on and see if there is another water leak.
2. Raise the rent. As an FYI, I inherited these tenants when I bought the place over a year ago so a rent increase could be due anyway.
3. Since the tenants are on a month to month lease, ask my PM to present the tenants with a new lease that is also month to month that states that they will now be responsible for water and sewer. As I understand it I will still need to keep the water and sewer in my name, but I can (try to) pass this on to the tenants by literally forwarding the bill to them when I get it.
4. If the tenants refuse to sign the new lease that I have my PM offer them, should I simply tell them that I am now giving them 30 days notice that I am simply not renewing their month to month lease? These water bills are literally making me go cash flow negative and I certainly can't keep this going.
Thoughts?
Have you logged into your Cleveland Water online account to see the daily or hourly usage? It's possible that the high usage that resulted in that huge bill happened before the leak was actually fixed, depending on the billing date. It's best to rule that out first, and if it looks like the daily usage is back to normal, then you will probably just go back to how things were before (sub-$100 bills with existing tenant). If something did change in their household situation though, I would suggest providing them with a new rental agreement (with 30 days advance notice) stating that if they wish to remain, they will have to pay for any water usage beyond $75/mo, and then tack that onto the rent bill if they go over it (assuming they choose to stay in the house and sign the new agreement).
Are you positive that you aren't paying the prior month? Meaning, the month it was fixed. You always pay in the arears like a mortgage. Considering the leak is fixed usually summer months are a little higher than winter. Do you have outdoor water spickets? Pool? Sprinkler? Monitor your account online..
@Brian Garlington I'd have the PM notify the tenants right now that if the water bills continue to be high, changes will need to be made to give them responsibility for it. With a month to month tenant you have the flexibility to make those changes, at least, but just threatening it might get the water use under control. It's hot as hell out here this summer, maybe they're running a sprinkler all the time or filling up paddling pools for their kids every day. They might knock it off if they know they'll have to start paying for it. Or they might start taking you seriously when you say that you need to know about any leaks, drips or running toilets. Let them know that, see what the next bill is like, go from there.
If you do make changes I'm very fond of my system of paying a reasonable bill and invoicing for anything over that. Maybe say you'll pay the first $70-$80, and they will be invoiced for anything over that. Explain that if they don't pay the invoices they can be given their 30 day notice to move. It's a pretty reasonable setup, tenants are usually accepting as long as it's explained well.
You should remove all exterior spigots from the house. This way there will be no way they can fill up a pool, wash cars or use sprinklers etc.
@James Wise Great idea regarding removal of exterior spigots... however I just had a rental inspector in CLEVELAND proper give us a violation for exterior spigot. They say it is now required!
Let me know if you start seeing the same.
Bob C
I just attach an invoice for the water when I send the rent invoice through my PM/rent collection software. Super easy, and I've never had an issue collecting. I attach the bill to the invoice so they know the amount is accurate.
@James Wise Great idea regarding removal of exterior spigots... however I just had a rental inspector in CLEVELAND proper give us a violation for exterior spigot. They say it is now required!
Let me know if you start seeing the same.
Bob C
Hmmm that's rough. We've been doing that as standard operating procedure for years. Haven't run into anything like that yet. Will update this thread if we run into that.