Tenants won`t pay utility bills

[surfermoe]

Hi folks,

Five months ago, my wife and I made an unusual arrangement in order to find tenants for one of our units.

Long story short: we were trying to find tenants at one of the worst times of the year, and settled on three young guys who
had good references but terrible credit (I know - we`ve read countless times that it`s better to let a unit
go empty than fill it with dubious tenants. But it`s so much easier to read it than actually do it...)

Because these guys had bad credit, they didn`t want to apply for an account with the local utility. So we told them we`d
put our name on the account, and they could reimburse us every two months.

We`ve had two bills from the utility since they moved in, and they reimbursed us for the first bill. For the second bill,
we`ve emailed them twice telling them what they have to pay. Surprise! They haven`t responded.

We can see this happening every two months, and just want to get rid of them.

Do we have grounds to give them notice?

Any advice (without mockery) would be appreciated.

Thanks,

Moe

 

[myme22]

Hi Moe,

Just one suggestion/question...

Did you think of putting your agreement with the them with regards to their responsibility to pay for utes in an addendum?

Serge
QUOTE (surfermoe @ Apr 6 2010, 05:11 PM) Hi folks,

Five months ago, my wife and I made an unusual arrangement in order to find tenants for one of our units.

Long story short: we were trying to find tenants at one of the worst times of the year, and settled on three young guys who
had good references but terrible credit (I know - we`ve read countless times that it`s better to let a unit
go empty than fill it with dubious tenants. But it`s so much easier to read it than actually do it...)

Because these guys had bad credit, they didn`t want to apply for an account with the local utility. So we told them we`d
put our name on the account, and they could reimburse us every two months.

We`ve had two bills from the utility since they moved in, and they reimbursed us for the first bill. For the second bill,
we`ve emailed them twice telling them what they have to pay. Surprise! They haven`t responded.

We can see this happening every two months, and just want to get rid of them.

Do we have grounds to give them notice?

Any advice (without mockery) would be appreciated.

Thanks,

Moe`

 

[surfermoe]

QUOTE (myme22 @ Apr 6 2010, 07:44 PM) Hi Moe,

Just one suggestion/question...

Did you think of putting your agreement with the them with regards to their responsibility to pay for utes in an addendum?

Serge

Hi Serge,

Unfortunately, we only thought of that after signing the lease! Live and learn...

Moe

 

[housingrental]

Hi Moe

To clarify:
Your lease says tenants are responsible for paying utilities or it says landlord is?
And you have nothing in writing on your arrangement?

 

[DaveRhydderch]

QUOTE (housingrental @ Apr 7 2010, 11:28 AM) Hi Moe

To clarify:
Your lease says tenants are responsible for paying utilities or it says landlord is?
And you have nothing in writing on your arrangement?

This is the key. What do the written agreements say?

 

[surfermoe]

QUOTE (DaveRhydderch @ Apr 7 2010, 10:57 AM) This is the key. What do the written agreements say?

Just checked with my wife. We did state in the lease that they`re responsible for reimbursing us for utilities.

I guess that means we have legal grounds to oust them?

 

[fumbrunner]

QUOTE (surfermoe @ Apr 7 2010, 03:43 PM) Just checked with my wife. We did state in the lease that they`re responsible for reimbursing us for utilities.

I guess that means we have legal grounds to oust them?
If that is the case, why didn`t you put the utilities in their name in the first place?

 

[RebeccaBryan]

Yes you can evict for them not paying the utilities if it says they are responsible for them in your lease. That`s part of the lease and they are in default if they do not pay them. Another way you could do it is take the next payment for the utilities and write the receipt that way, and then in their account statement show that they are in default in their rent. It doesn`t matter either way really. They are in default.

Next time make sure the utilities go in their names no matter what. Never buy any sob story.

 

[Thomas Beyer]

QUOTE (surfermoe @ Apr 7 2010, 02:43 PM) Just checked with my wife. We did state in the lease that they`re responsible for reimbursing us for utilities.

I guess that means we have legal grounds to oust them?
yes, as they are in breach of lease !

But: you have to follow the process that differs by province !

 

[DaveRhydderch]

You`re going to find these tenants need to go. Even if they do pay this time, this will happen again. And again. And again. How do I know??????

Make sure you document everything you do. And just remember its a learning experience.

Good luck.

 

[housingrental]

I believe both Thomas and Rebbecca`s post are incorrect. Check with LTB.
I think you need to go route of small claims court for the costs but are unlikely to get an eviction from them anytime soon.

 

[RebeccaBryan]

QUOTE (housingrental @ Apr 8 2010, 07:40 AM) I believe both Thomas and Rebbecca`s post are incorrect. Check with LTB.
I think you need to go route of small claims court for the costs but are unlikely to get an eviction from them anytime soon.


I`m not wrong if it pertains to the province of Alberta. It`s part of the lease agreement and if they agreed to pay the landlord the utilities then they are in breach of the agreement and can easily be evicted.

 

[Mecheng]

If this is Ontario, please see the following instruction for Form N4:What is included in the definition of rent?
Rent includes the basic rent for the rental unit, plus any amount the tenant pays you

separately for services (such as parking or cable). If the tenant is responsible for paying

all or a portion of a utility bill (such as hydro) directly to the utility company or indirectly

through the landlord, this is not considered rent. However, if the tenant is required to

pay a flat rate to the landlord each month for a utility, this would meet the definition of

rent.

You should not use this form to tell the tenant they owe you amounts other than rent

(such as the last month’s rent deposit or an NSF cheque charge).

In this case it seems the utilities are not considered rent.
Another reason being a landlord in Onterio is so much fun.

 

[Thomas Beyer]

QUOTE (RebeccaBryan @ Apr 8 2010, 07:57 AM) I`m not wrong if it pertains to the province of Alberta. It`s part of the lease agreement and if they agreed to pay the landlord the utilities then they are in breach of the agreement and can easily be evicted.
exactly !

 

[Nir]

QUOTE (Mecheng @ Apr 8 2010, 07:22 AM) If this is Ontario, please see the following instruction for Form N4:What is included in the definition of rent?
Rent includes the basic rent for the rental unit, plus any amount the tenant pays you

separately for services (such as parking or cable). If the tenant is responsible for paying

all or a portion of a utility bill (such as hydro) directly to the utility company or indirectly

through the landlord, this is not considered rent. However, if the tenant is required to

pay a flat rate to the landlord each month for a utility, this would meet the definition of

rent.

You should not use this form to tell the tenant they owe you amounts other than rent

(such as the last month`s rent deposit or an NSF cheque charge).

In this case it seems the utilities are not considered rent.
Another reason being a landlord in Onterio is so much fun.

Mecheng summarized it really well for you. unfortunately, Adam is 100% correct. what a headache professional tenants can cause!
Good luck.

 

[housingrental]

Yes but the poster is in Ontario not Alberta... so you`ve provided him with information not applicable to him unfortunately

QUOTE (RebeccaBryan @ Apr 8 2010, 09:57 AM) I`m not wrong if it pertains to the province of Alberta. It`s part of the lease agreement and if they agreed to pay the landlord the utilities then they are in breach of the agreement and can easily be evicted.

 

[TomB]

QUOTE (RebeccaBryan @ Apr 8 2010, 07:57 AM) I`m not wrong if it pertains to the province of Alberta. It`s part of the lease agreement and if they agreed to pay the landlord the utilities then they are in breach of the agreement and can easily be evicted.

And, also not wrong if the property is in B.C.! In fact, the 10 day notice to evict is based on EITHER unpaid rent or utilities.

 

[julieCEO]

QUOTE (investmart @ Apr 8 2010, 09:34 PM) Mecheng summarized it really well for you. unfortunately, Adam is 100% correct. what a headache professional tenants can cause!
Good luck.

Professional tenants always create problem. Before going with them. Be agree on all the terms and conditions in written.