Any compliance tips for tenant utility over/under payment?

Member since 2025 · 14 posts · 2 votes

Landlords or Property managers,
Currently how are you ensuring the compliance on rental properties for tenant e.g. utility bill reconciliation etc.?

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Drew SygitBusiness Member

Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes

7mo

Quote from @Abhishek Koundal:

Quote from @Kenneth Garrett:

@Abhishek Koundal

I think it depends whether it's a SFH or a multi-tenant building. On my SFH, I have the tenant sign up for water/sewer and they pay the bill direct. I make sure I am cc'd on the billing so I know it's being paid.

For a multi-Unit, I sub-meter the water and send them a bill. There are companies who will do this for you for a price. It’s a bit pricey for small multi’s. Make sure you collect a deposit in case they don’t pay the bill when they leave. You can use the security deposit for this if need be. Not sure what California allows.

SFH as now as my portfolio doesn't have multi-family yet.
Yes I am looking at the sign up from tenant for water/sewer signup, the only issue is to make sure they are paying there bill and I don't forget to see, if they paid :).

Electric and gas are easy to manage and make sure tenant puts in their name.

Water: some cities/states do NOT put the water liabilty in tenant name.
- Michigan is like this. So, we have water bills sent to us. We pay them and then bill the tenant, adding to their rent ledger. We do NOT recommend letting water bills going to the rental property and hoping the tenants pay.

[email protected]248-209-6824

Logical Property Management4.9458 Reviews

Website View Page

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Janice Carter
Real Estate Broker · Atlanta · Member since 2024 · 1k+ posts · 605 votes
7mo
We ensure compliance through clear lease language, documented billing procedures and consistent reconciliation practices. Consistency and documentation are key.

1 Reply
- Abhishek Koundal
  OP
  Member since 2025 · 14 posts · 2 votes
  7mo
  Quote from @Janice Carter:
  
  We ensure compliance through clear lease language, documented billing procedures and consistent reconciliation practices. Consistency and documentation are key.
  
  can you elaborate on the consistent reconciliation practices? Any tools or s/w or its manual mapping of the billing vs tenant payment. I am not concerned with the fixed amount, but variable which are generally in sewage/water in california.
  
  0 Reply
Kenneth GarrettPro Member
Investor · Florida Panhandle/Illinois · Member since 2016 · 4k+ posts · 3k+ votes
7mo
@Abhishek Koundal
I think it depends whether it's a SFH or a multi-tenant building. On my SFH, I have the tenant sign up for water/sewer and they pay the bill direct. I make sure I am cc'd on the billing so I know it's being paid.
For a multi-Unit, I sub-meter the water and send them a bill. There are companies who will do this for you for a price. It’s a bit pricey for small multi’s. Make sure you collect a deposit in case they don’t pay the bill when they leave. You can use the security deposit for this if need be. Not sure what California allows.
1 Reply
- Abhishek Koundal
  OP
  Member since 2025 · 14 posts · 2 votes
  7mo
  Quote from @Kenneth Garrett:
  
  @Abhishek Koundal
  I think it depends whether it's a SFH or a multi-tenant building. On my SFH, I have the tenant sign up for water/sewer and they pay the bill direct. I make sure I am cc'd on the billing so I know it's being paid.
  For a multi-Unit, I sub-meter the water and send them a bill. There are companies who will do this for you for a price. It’s a bit pricey for small multi’s. Make sure you collect a deposit in case they don’t pay the bill when they leave. You can use the security deposit for this if need be. Not sure what California allows.
  
  SFH as now as my portfolio doesn't have multi-family yet.
  Yes I am looking at the sign up from tenant for water/sewer signup, the only issue is to make sure they are paying there bill and I don't forget to see, if they paid :).
  0 Reply
- Drew SygitBusiness Member
  Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
  7mo
  Quote from @Abhishek Koundal:
  
  Quote from @Kenneth Garrett:
  
  @Abhishek Koundal
  I think it depends whether it's a SFH or a multi-tenant building. On my SFH, I have the tenant sign up for water/sewer and they pay the bill direct. I make sure I am cc'd on the billing so I know it's being paid.
  For a multi-Unit, I sub-meter the water and send them a bill. There are companies who will do this for you for a price. It’s a bit pricey for small multi’s. Make sure you collect a deposit in case they don’t pay the bill when they leave. You can use the security deposit for this if need be. Not sure what California allows.
  
  SFH as now as my portfolio doesn't have multi-family yet.
  Yes I am looking at the sign up from tenant for water/sewer signup, the only issue is to make sure they are paying there bill and I don't forget to see, if they paid :).
  
  Electric and gas are easy to manage and make sure tenant puts in their name.
  Water: some cities/states do NOT put the water liabilty in tenant name.
  - Michigan is like this. So, we have water bills sent to us. We pay them and then bill the tenant, adding to their rent ledger. We do NOT recommend letting water bills going to the rental property and hoping the tenants pay.
  [email protected]248-209-6824
  Logical Property Management4.9458 Reviews
  Website View Page
  2 Reply
- Abhishek Koundal
  OP
  Member since 2025 · 14 posts · 2 votes
  7mo
  Quote from @Drew Sygit:
  
  Quote from @Abhishek Koundal:
  
  Quote from @Kenneth Garrett:
  
  @Abhishek Koundal
  I think it depends whether it's a SFH or a multi-tenant building. On my SFH, I have the tenant sign up for water/sewer and they pay the bill direct. I make sure I am cc'd on the billing so I know it's being paid.
  For a multi-Unit, I sub-meter the water and send them a bill. There are companies who will do this for you for a price. It’s a bit pricey for small multi’s. Make sure you collect a deposit in case they don’t pay the bill when they leave. You can use the security deposit for this if need be. Not sure what California allows.
  
  SFH as now as my portfolio doesn't have multi-family yet.
  Yes I am looking at the sign up from tenant for water/sewer signup, the only issue is to make sure they are paying there bill and I don't forget to see, if they paid :).
  
  Electric and gas are easy to manage and make sure tenant puts in their name.
  Water: some cities/states do NOT put the water liabilty in tenant name.
  - Michigan is like this. So, we have water bills sent to us. We pay them and then bill the tenant, adding to their rent ledger. We do NOT recommend letting water bills going to the rental property and hoping the tenants pay.
  I am doing the same , but challenge comes as the bill fluctuate, so I have automated it to tell me if based on the bill, the tenant has underpaid or overpaid. I wish county could give me API so I can auto pull and my platform updates it on monthly changes. With my latest automation I am seeing tenants are underpaying as I had a fixed value to make monthly total collection from tenant easy
  
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