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Utilities - how do you get out of including them?

LAndersen

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We currently include utilities with our rent as our units are suites in a duplex and 2 SFH`s. This isn`t working out as the tenants aren`t responsible at all with trying to manage the utilities. Now we want to have utiliteis not included as the leases expire. What is the best way to do this? Is it best to have the utilities taken care of totally by the tenant? What about it being rent plus so much utilities and keep them in our name, such as rent plus 1 / 3 utilities. I really would prefer to get away from them totally.
 

Thomas Beyer

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QUOTE (LAndersen @ Jul 6 2010, 08:34 PM) We currently include utilities with our rent as our units are suites in a duplex and 2 SFH`s. This isn`t working out as the tenants aren`t responsible at all with trying to manage the utilities. Now we want to have utiliteis not included as the leases expire. What is the best way to do this? Is it best to have the utilities taken care of totally by the tenant? What about it being rent plus so much utilities and keep them in our name, such as rent plus 1 / 3 utilities. I really would prefer to get away from them totally.
I assume that is Ontario ? Each rules differ from province to province !

You canNOT change the terms of the lease in Ontario, until you have a new tenant .. even after lease expiry as it goes month-to-month afterwards.

Then, with a new tenant, have that clause changed !
 

LAndersen

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My properties are in Grande Prairie, Alberta. I am not proposing breaking leases or anything, just changing how utilities are structured when the leases come due.
 

MikeMcCrae

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What I like to do is have the uostairs tenant put the utilities in their name and I agree to pay a percentage of their bill. Normally 60-40. This is seperate from the rent and when they show me the paid bill I write them a cheque. The down stairs people are responsible for the balance. In their lease I put their share of utilities but we usually agree on a flat fee after so that I am not chasing for payment. I make the charge cheap ($100-125) so that it is a good deal for them and have them pay it with the rent.
 

LillianHo

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QUOTE (LAndersen @ Jul 6 2010, 08:34 PM) We currently include utilities with our rent as our units are suites in a duplex and 2 SFH`s. This isn`t working out as the tenants aren`t responsible at all with trying to manage the utilities. Now we want to have utiliteis not included as the leases expire. What is the best way to do this? Is it best to have the utilities taken care of totally by the tenant? What about it being rent plus so much utilities and keep them in our name, such as rent plus 1 / 3 utilities. I really would prefer to get away from them totally.

This is my story of the tenant paying the utilities. I have a two level rental house with a suite downstairs in BC. So always two families sharing the house.

My previous tenants living upstairs wanted the utility to be under their name. So whenever the bill came, they pay 60% and collect 40% from the tenants downstairs.

Now my new tenants didn`t ask for registering the utilities, so I register both utilities ( Hydro and gas) under my name. Every two months I visit them, and collect the money. I prefer to do this way. This way I can see if there is any misuse on the utilities. Lucky I am not far from the property ( 30 minutes drive) and I have other properties in the same area too, so that I can arrange something in the same day. Also I would like to take the opportunity to talk to my tenants ( drop a small gift to their son, etc) and check the property to see if everything is normal. It gives me the reason to check their place without attention.

I put the payment percentage under the rental agreement. It depends on how many people live there, and how`s the usage for upstairs and downstairs. Like my situation, upstairs using more gas for the heating in the winter and downstairs using more electricity (heating board). So I use 60%/40% for electricity, 2/3 and 1/3 for the gas. I want it to be fair for everyone. You can make it simple as long as they are okay with it.
 

PropertySolution

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To put it simply, In Alberta you cannot change the lease terms during the lease period unless the Landlord and Tenant agree to in writing (Add an Addendum). You will have to wait for the lease to run out. I would also give the Tenant at least 90 days notice that you will be doing this both out of courtesy as well as to cover any question as to this being some type of rental increase. I would not consider it as one but I like to avoid any problems.

QUOTE (LAndersen @ Jul 6 2010, 09:34 PM) We currently include utilities with our rent as our units are suites in a duplex and 2 SFH`s. This isn`t working out as the tenants aren`t responsible at all with trying to manage the utilities. Now we want to have utiliteis not included as the leases expire. What is the best way to do this? Is it best to have the utilities taken care of totally by the tenant? What about it being rent plus so much utilities and keep them in our name, such as rent plus 1 / 3 utilities. I really would prefer to get away from them totally.
 

wgraham

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For our up/down houses we place elect/water in one tenants name and the gas in the other. This makes the bills fairly even from a dollar amount point of view and removes the "he never paid his portion" issues.

I almost never pay utils....when you buy a car they don`t pay the gas.....I don`t see how renting a home is any different!
 

LillianHo

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QUOTE (wgraham @ Jul 7 2010, 11:04 AM) I almost never pay utils....when you buy a car they don`t pay the gas.....I don`t see how renting a home is any different!

The different is HUGE. When you buy a car, you own it and you have responsibility for everything including the insurance and damage. But when you rent out a house, the house is yours not tenants. You have more liability than them.
 

neill

Airdrie, AB
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Oct 22, 2007
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We have an addendum that clearly spells out who is responsible for which utility, and how to collect from the other party. We also tell each party that if there is an issue with collection that we will get involved - we rarely have to... (I can`t remember if we got it from the critical forms downloads, or from another REIN member - PM me if you cannot find it, and I will send you a copy if you want).

The City of Airdrie will not allow water/sewer bill to be in tenant`s name, so we either:
1) get the tenant to pay the bill directly and check up online periodically to ensure that they are not going past due, or
2) collect a utility deposit separate from rent to cover the bill - and settle it up annually. This works well with up/down tenants, and again is an addendum to their lease...

Hope that helps....
 

RedlineBrett

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Oct 24, 2007
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QUOTE (wgraham @ Jul 7 2010, 12:04 PM) For our up/down houses we place elect/water in one tenants name and the gas in the other. This makes the bills fairly even from a dollar amount point of view and removes the "he never paid his portion" issues.

This is the way we do it too and really haven`t had that many issues.
 
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