Can Deposit be used to cover unpaid utilities

Question

My renters just moved out. On the day of the walk through the water was off. It turns out the water was shut off for non payment. All utilities in the rental agreement are the responsibility of the renters. The kerosene tank was also empty. The rental agreement states kerosene not being the responsibility of the owner.

Question: Can the deposit be used to cover cost of turning water on and refilling kerosene? With itemized documentation.

Scott Nachitilo · Answer

Ramon, it is possible to deduct the water bill/reconnect fee as evidence that you paid these fees, so long as you have done extensive documentation to support it. Kerosene is a more difficult situation to confirm without an explicit clause in the lease, but if the language indicates that the tenant is responsible for maintaining kerosene in the generator, and/or returning it full, you may deduct the cost of the refill. If the lease does not have specific language on kerosene and/or leaves it blank, consider comparing the refill cost against the risk of small claims. For all claims, the 21-day deadline must be adhered to closely, so provide a detailed account of the amount owed to tenants along with your documentation. Further, if you're uncertain about the law in your jurisdiction, contacting a local landlord-tenant attorney for a consultation at a minimal fee will greatly help reduce any risk exposure.

James Jones · Answer

In California, yes a security deposit can be used to cover unpaid obligations that were the tenant’s responsibility under the lease, as long as you provide an itemized deduction within 21 days and proper documentation.

Under CA Civil Code §1950.5, a landlord may deduct from the deposit for:

Unpaid rent

Unpaid utilities the tenant was contractually responsible for

Damage or losses beyond normal wear and tear

Other necessary costs incurred because the tenant failed to meet lease obligations

In your case:

1. Water shutoff / reconnection fees

If the tenant was responsible for the water bill and allowed it to be shut off, the reconnection cost is directly tied to their nonpayment. That’s generally a valid deduction with documentation from the utility provider.

2. Kerosene

If the lease says kerosene is not the owner’s responsibility, then refilling the tank cannot be deducted.

However, if leaving the tank empty created a condition you were obligated to remedy (e.g., heat system can’t run without it), some landlords argue it falls under “tenant failed to leave the unit in the same condition.” But that’s a gray area and probably not worth fighting over.

Most stick to deducting only the clear, defensible items under §1950.5.

What to do:

Gather invoices for:

Water reconnection fee

Any charges related to nonpayment

Prepare an itemized deposit statement

Include receipts/documentation

Mail within 21 days via certified mail or a trackable method

That protects you and keeps everything compliant.

Theresa Harris · Answer

If both are the tenant's responsibility under the lease, absolutely.  Also charge them any fee for having to get the water turned on.  I'd get the water turned on ASAP to also ensure there are no problems when that happens.  The utility company should give you instructions, but I'd be there and have a couple of taps turned on so there is somewhere for the air in the lines to go and no pressure build up when it is turned on.

Ramon Mota · Answer

The city will eventually charge the home owners in out area so I would have to pay the bill eventually anyway. We also start the new rental term with with the tank full and expect it to be near full at the end of the term. If it was near full I wouldn't mind but it took 94 gallons.

Chase Busick · Answer

@Ramon Mota, I'd say so but I'd definitely wait for some additional opinions.

if they moved out, you're going to have to turn it back on (when they were supposed to be there & have on for a final inspection) I'd take note of any discrepancies with anything plumbing related. What can do, sim will have to turn on anyway is to bill a portion of want to be considerate.

I think either or would work. Referring to the lease is important & I think can be considered a valid deduction as they moved out without notice & refilling the kerosene. Itemize it for sure.