Tennant has unpaid utilities, has given notice.

[SlinkyMike]

I usually roll my eyes at the landlord/tennant threads in this sub. Usually because I can't understand why people can't resolve things like rational adults... But I find myself in a quandary and I guess I'm beginning to see how it is the these threads crop up.

Basically: tennant has given notice but has a large (R10k plus) utility arrears with the city, on my name. I'm very worried that they can somehow get away without paying and leave me liable.

Does anyone have any experience here? What are my options?

 

[Maverick Jester]

Utilities as in electricity and sanitation? Surely the onus is on you, as the owner, to pay this?

 

[DJ...]

Take it form the deposit. There is very little that you can do in this situation...

 

[Ecco]

Utilities as in electricity and sanitation? Surely the onus is on you, as the owner, to pay this?

Nope, electricty and water is for the tenant to pay

 

[DJ...]

Nope, electricty and water is for the tenant to pay

The municipality couldn't care less who pays it. As long as it is paid.

Not sure if the law requiring tenant municipal accounts has been ratified yet...

 

[Maverick Jester]

Nope, electricty and water is for the tenant to pay

Hmmm, I phrased that wrong. Surely the account at the municipal department should be registered under the owner's name?

 

[Ecco]

Hmmm, I phrased that wrong. Surely the account at the municipal department should be registered under the owner's name?

Yeah its on the owners name, he mentioned that. But, and i stand to be corrected, in terms of the lease the liability is still against the tenant. However any dealings with government, if your name is on the paper, you usually in the poo if something goes wrong, and its going to be your problem to sort out - which is never an easy thing with government departments.

 

[RanzB]

I usually roll my eyes at the landlord/tennant threads in this sub. Usually because I can't understand why people can't resolve things like rational adults... But I find myself in a quandary and I guess I'm beginning to see how it is the these threads crop up.

Basically: tennant has given notice but has a large (R10k plus) utility arrears with the city, on my name. I'm very worried that they can somehow get away without paying and leave me liable.

Does anyone have any experience here? What are my options?

So he pays you rent, and he pays the city utilities separately? Speak with him about it, maybe it's an oversight. Otherwise, as mentioned, you're going to have to take it out of the deposit, if it covers it.

 

[Arthur]

If your lease agreement is that the tenant will pay you for their usage of your utilities, then you must recover from the tenant. As DJ said, simply dock it from the deposit (you have a deposit, I presume?).

If the utilities agreement with the local authority is in your name then you are liable for payment to the council. Your private treaty with your tenant has nothing to do with them.

So, it's a two-step process:
1) Pay the council what you owe them. It matters not a jot that the bills were run up by a tenant - you are liable.
2) Recover the outstanding amount from your tenant.

Tip: Don't let your dispute with your tenant spill over to affect your relationship with the local authority.

 

[chrisc]

I hope you have some lien on the tenant. I had one who did the same and told me he would pay me on the 16th when he got paid. I went round there on the 16th to find the house empty, he had done a duck.

So now everything is pre-paid and I pay the water and rates, which are included in the rent. There is also a clause that states if the water or rates increase exceeds 5% average from the previous year, he is liable immediately for the cost thereof.

I installed a borehole pump to make his water bill lower, but he decided to use municipal water instead, so the water increased from R 370 in November to R 1254 in December and R 1334 in January. He paid the difference, and now uses the pump.

 

[Carol35]

Sadly, if you cannot recover from the deposit, there is not a thing you can do! I've seen this happen with friends of ours who leased their property, be thankful they have given notice, my friends tenants stayed for 8 months, no rent, utilities etc...cost a fortune in legal fees to get them to move!

 

[kripstoe]

Question to OP. Over what period was this run up? Were you aware that the tenant wasn't paying utilities?

 

[Dolby]

How long does the municipality keep letting the bill run over? I always got the feeling that even 1 month late and they'd cut off what they needed to. Brave of the tenant to risk it though ...

 

[TheGuy]

All my tenants so far have registered for electricity in their own name all I pay is the rates

 

[visrot]

I pay rates,sanitation and refuse. They pay elec. and rent.

 

[SirFooK'nG]

If your lease agreement is that the tenant will pay you for their usage of your utilities, then you must recover from the tenant. As DJ said, simply dock it from the deposit (you have a deposit, I presume?).

If the utilities agreement with the local authority is in your name then you are liable for payment to the council. Your private treaty with your tenant has nothing to do with them.

So, it's a two-step process:
1) Pay the council what you owe them. It matters not a jot that the bills were run up by a tenant - you are liable.
2) Recover the outstanding amount from your tenant.

Tip: Don't let your dispute with your tenant spill over to affect your relationship with the local authority.

This ^

Take it out their deposit, if there is none, add it to their last months bill.

 

[krycor]

Uhm didn't you take a deposit for this? Most places i've been do that and pass the utility bill on to me.. and if you slip up then pulled from rental with notice pending settlement back to initial rental + utility depo

 

[SlinkyMike]

Thanks for all the replies.

The deposit will cover the bulk but not all of the arrears. Looks like the remainder will be a write off.

Lesson learned.

I guess it's a little naive of me but I do believe in the basic goodness of people and it's hard to imagine that someone would willfully shaft someone else... I guess they might also not have much of a choice - moving can be expensive, etc.

 

[ABCpt]

How long does the municipality keep letting the bill run over? I always got the feeling that even 1 month late and they'd cut off what they needed to. Brave of the tenant to risk it though ...

I guess only honest people get cut off if they don't pay. Not sure how the municipality knows this though.

 

[Cius]

Dude, show any softness and you will be screwed. Demand payment in full immediately or tell the guy you will have his assets attached. Also, you should not have let it get this high. Action should have been taken (cutting the electricity) when it got to half the deposit amount.