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Talk about a scam. When we moved to TN. We had that at the Local water and sewer Dept. $150.00 just to have it turned on. And when I checked into having another setup for our greenhouses on down the road. Another $150.00 for each one. It's nice they actually didn't pull a gun on me.
The propane delivery company did the same thing for only $75.00 though.
It's called a connection fee......It's not a deposit...I don't think we have them here yet but I have heard of them. I do know it cost to have a water meter put in by the city here tho, about $450.00.
Here you pay $ 40.- to have it turn in your name when there is already an account...just to switch names and if you have good standing with the Utility company otherwise you have to pay a refunadable deposit as well.
Our local water company charged a $50 non refundable 'administrative fee' when we moved. Unfortunately, it's the only water place available so they can basically charge whatever they want.
Some places will also charge both a "hookup/admin fee" and a deposit, but the deposit is usually refundable in that case. The deposit will often be waived if you have had an account with that utility company before, and paid your bill on time.
We have tenants call us up and tell us they can't afford to put utilities in their name because of having to pay a (refundable) deposit, but we consider it a normal living expense, and between them and the utility company. That is one reason why we require all utilities to be scheduled into the tenants name prior to them moving in (ie the calls must all have been made, so these conversations happen before they take occupancy). If they can't afford the costs associated with renting, it is best to know that up front.
The nonrefundable hookup/admin fee sometimes may be waived if the utility company and the landlord have a "landlord agreement" on file. This agreement rolls the service back to the landlord during vacancies, so the service never gets shut off. Some utility companies do this, some do not. Around here, the power and gas companies do, all the water companies do not.
If the service ever gets shut off for nonpayment, usually there is another admin fee charged in addition to the balance due.
What Houston3 mentioned sounds like the initial service fee, for having service installed for the first time ever at a property. That is the only time a meter would be installed. It can be very pricy, but for basic necessary utilities that should be an owner expense, rather than a renter expense.
For refundable deposits, I've seen 1-2 month's average utility cost as an amount. Depending on the utility, that can be anywhere from $20-$200. We have also had times when a tenant moved out and we found out their deposit was insufficient to cover the amount they had outstanding.
Transfer/admin/hookup fees usually aren't more than $50, so $150 seems very high if that's all it was. Are you sure it wasn't both a nonrefundable hookup fee and a refundable deposit?
es that is comon if you never had a acount with the ultity and you will get it bacvk when you leave if evryhting is as required. Youd'd be sur[prised what some p[eole damage or take when they get behind. Basically ;we pay for the actions of others in many cases nowdays.
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