Tenant Move Out, how to handle utilities?

Question

I had a tenant move out on a property that I have managed by a local property management company. Should I expect my PM to handle taking over the service of the electric and water bills and charging that back to me? Or even with a PM is it my responsibility to reach out to the utilities company and get that put in my own name?

Drew Sygit · Answer

What does it state in your management contract?

If nothing, you should find a better organized PMC!

FYI: This is clearly covered in our management contract along with property taxes and insurance.

We got burned by too many owners when we put utilities in our company name. With no rental income we were at the mercy of owners to send us funds to cover the costs. That did NOT work our well:(

So, now we place all vacant utilities back in the name of the owner and if they send us funds, we will pay on their behalf. But, if they do not send funds, they are liable, not us.

Brandon Rush · Answer

Hey Femi,

I would recommend jumping on the call today and asking the PM directly. Maybe first read the contract you signed with them to see if there is any language regarding utilities being switched or cut off after vacancy. In my opinion, this should be something that the PM handles. It would be weird to have 50 properties under management and have to handle these tasks.

Good luck!

Bud Gaffney · Answer

PM will take care of that! A good PM anyways. Good luck!

Joe Splitrock · Answer

Personally, I would call to follow up with the utilities after the tenant leaves to make sure the PM did this. I would only do this with a new PM relationship, just to check up and make sure they organized. Unfortunately there are good and bad PM. The bad ones may not always do what is in their contract. Keep an eye on them until you have trust built up.

Femi Salami · Answer

Thanks all. It was in my contract and fully covered by my PM!

Theresa Harris · Answer

Talk to your PM and find out.  Mine takes care of that.

Tenant Move Out, how to handle utilities?

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