Unpaid Water Bills in your Rental Property?
February 7, 2017
Whose responsibility is the WATER expenses?
Is water bill owner’s or tenant’s obligation? At very first sight, the response might seem easy– of course, it is the tenant’s, their lease states that they are accountable for all utilities. There is some reality to this statement, however quite typically landlords find themselves in a situation where the renter moved out, returned the deposit to the occupant and a water expense comes in. Or the tenant vacates, and the property owner discovers out that the water costs hasn’t been paid in months. What are you going to do when you need to pay a large water expense? This is where it gets tricky.
You must know that the Water is owned by the City
Since in the majority of Denver areas, the city and not a private business owns the water. The city does have the authority to put a claim on your home if the bill isn’t paid. It is similar to letting a pal borrow your cars and truck, and he gets captured speeding on cam. It becomes your obligation since you own the automobile; the ticket pertains to your address and gets connected to your record. Naturally, you can pursue the renter in a civil match and need payment. However, the expenses, energy and time for doing this are not worth the effort. And you would need to settle the costs before selling your residential or commercial property or having the next renter move in so that water is offered to them.
Loose your Property because of Unpaid Water Bills
A claim against your house isn’t something to ignore. You might potentially lose the property if you do not look after this water expense prompt, and the public utility pursues action versus you, the property owner. Simply this past summer, a customer of ours was offering his leasing and a public utility charge came up on the title search and had actually to be settled before the transaction could be settled.
So what’s a property owner to do? How can you secure yourself from remaining in this scenario? There are several ways to set about it:
1. Employ an expert property management company like Evolve Realty and Home Management to take care of your Denver residential or commercial property management needs, and we will ensure this never happens to you.
2. Or if you feel, you have the knowledge, the resources, and time to manage your very own property– costs the occupant for water every month after you get the costs and have them pay this amount straight to you with next month’s lease.
3. At the least, call the water business and ask to be copied on the costs. They can send out a copy of the costs to you and still continue sending one to the renters at your rental property. If the expense becomes delinquent, you will get the notification and can address it with the renter.
4. Never return the deposit before the last water bill is paid. In the state of Colorado, you can hold the deposit as much as One Month after the tenant leaves, unless your lease determines a longer period. 60 days is the optimum quantity of time you can keep a deposit if your contract defines this. This is lots of time to receive the final water expense and subtract the quantity from the deposit.
5. Do not get stuck paying your tenants’ water bill. Know your rights and responsibilities that come with owning rental homes. At SLVBOR, Residential or commercial property Management, we are proud to say that we remain on top of the legal concerns and offer guidance to house owners on the best ways to maximize their return and secure themselves in their Denver leasing residential or commercial property management ventures.
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