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So I have a condo that I just started renting out. The tenant moved in last week on a year lease and I have opened the electric account to have her be able to change her name on it. The tenant called me last night to state that she had a previous account from the electric company that is still active and she said that she is unable to get another account active right now with her ex spouse and they won't let her have it in her name until her name gets taken off the other account.
They are sending her forms to get her off that account, but in the mean time they are stating they may shut the electric off until then.
She said if I kept it in my name she would pay it, but I really don't like the sound of that although in an additional info spot on the lease I have I did state tenant was solely responsible for utilities so they can't fall back on me if they were to be unpaid, etc.
I need to get this figured out today, but should I put something in writing that she would need to sign stating she will pay the electric bill for that location (she said it will take about 2 weeks for the paperwork to go through to get it solely in her name).
Let's assume she's telling the truth and not attempting to con you. I'd put it in writing immediately that you'll keep the account in your name for two weeks and she will be responsible for reimbursing you for any charges. At that point, you will end the service expecting her to make the transfer as agreed in the signed lease. If she ultimately doesn't pay, say nothing, but take it out of her security deposit at the end of the term. The reason that I say that is that this is how you'll find out quickly if she's going to be a responsible tenant. You need to know right off the bat if you're going to have a good or an adversarial relationship.
If the electricity is not covering heat or hot water, the bill will probably be minimal for 2 wks anyway. If she's a woman of her word, she'll respect you as a landlord who makes a firm clear stand.
Thank you for the great advice and the quick response. I will get something typed up today. and have her sign it. She is very reasonable and I do trust her (as much as i can). This is just transition problem for her and i am willing to work with her, but the responsibility ultimately falls back on her for this is what I want to make clear.
I disagree with the advice to "say nothing but take it out of her security deposit". When the bill comes, prorate her charges according to how many days of that billing period she was in the condo, call her up and tell her what the amount is. Provide her with a copy of the bill so that she can see the numbers. Withholding money from a security deposit is the last thing to do. If you say nothing, one could assume that you didn't expect to be paid. Plus, if you have the addendum typed up and she signed it, she will certainly be expecting a call when the bill comes.
I actually had notification that the tenant was moving in on a certain date, so billing to me actually ceased from the date we moved out. The EC knows when she moved in and to bill her from that date, though it is just in my name for now.
I did just get off the phone w/ the Electric Company. They put notes on the account that a new tenant has moved in on XX date and shall be billled from that day as soon as the paperwork is filed. I am writing up a quick addendum stating that she is responsible for all electric charges from XX date to include with the already signed lease stating she is responisble. I will not hold monies for utilities out of the Security Deposit as that is for my property, not utility services. I think i have it all figured out.
We had a similiar issue recently. According to the lease, my tenant is responsible for the utilities. Well, he didnt put the bill in his name. I was gracious and initially was going to pay for the first week as he did get the key early. But then I got the bill and it was $711 (electric heat, long Island). Well there was no way I was going that high.
So I politely called him and told him the amount of the bill and that the electric was going to be cut off in three days.
He got it in his name and yes he did pay the whole bill.
I wrote up a little addendum to the lease stating that the tenant has 2 weeks else it is getting shut off. I know it may be a little lenient, but yet strong stating that this stuff needs to get taken care of. Again, thanks everyone!
"I disagree with the advice to "say nothing but take it out of her security deposit". When the bill comes, prorate her charges..."
I believe you misinterpreted what I wrote. Of course the bill would be forwarded to her to pay. I thought that was pretty clear. The question was whether she was going to ignore it- that was the OP's real concern and rightly so!
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