Tenant Didn’t Put Utilities In Their Name.
Question
I recently discovered that the tenant to whom I had rented a house a couple of months ago failed to switch the electric account which was in my name over to her name. The account has now been switched into her name, but the tenant is refusing to reimburse me for the payments I made to avoid damage to my credit. She has even hinted that she may not pay future bills. What rights do I have? Can I charge late fees or interest? Would this be an adequate issue for eviction?
Answer
What you can do depends almost entirely on the adequacy of your lease agreement regarding the matter. If the lease required the tenant to immediately switch the electric upon signing the lease, you can sue her for the amount owed via a lawsuit in small claims court after providing a written demand for payment if you have not yet done so. You could instead give written notice to the tenant that she is in default of the lease and that she must correct it or leave. You must provide the notice in accordance with the law of your state regarding this type of notice, how it must be served, and the number of days that must be allowed for correction of the default. You want to be able to sue for these costs if she “quits.” If not paid within the required notice period you can start an eviction.
If the lease does not cover the matter or does not do so adequately, you could have trouble collecting. This would be particularly true if the lease did not even specifically make her responsible for paying for electricity, as she could take the position that electricity was included and it would be her word against yours.
Some states allow providers of certain utility services to collect from the owner if a tenant does not pay the bills, even lien the property and/or refuse service for you or a successor tenant if the current tenant’s bill is unpaid. This is most often related to the fact that a utility is operated by the city, most common for water service. You need to check the law of your state and the policy of the electrical service providing for your property to see if this is another issue for you.
In addition to being sure that the lease agreement is adequate regarding the subject, one should not give possession while any utility that is to be the responsibility of the tenant is still in the landlord’s name. In many states landlords cannot legally have utilities turned off once the tenant is in possession. Of course, one cannot turn off any utility related to heating a unit if located in a climate where water lines might freeze and one may have no choice about leaving the utility on. This issue is best dealt with by requiring the tenant to prove the utility has been transferred prior to giving possession.