Water Bill Question for Landlords

[WorldCitizen]

I am a homeowner and landlord. I recently found out that once my tenants leave, the water bill will be under my name and I will be responsible for it’s collection. Has anyone had any issues with this change in policy yet?

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[chrisma]

Not a landlord, but a renter trying to understand your question.

Are you saying that should your tenants fail to pay the water charges, the utility reverts those charges to you and leaves you responsible for collecting the money from the tenants?

If that’s the case, that may explain why our landlord includes water service in our rent.

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[saney]

question is quite confusing. once the tenants leave, they shouldn’t be paying the water bill since they are no longer living there….

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[kmweiner]

Ok So this is what it is. In the past the electric charges followed the tenant and the utility charges followed the owner. That meant that if a bill wasn’t paid, the tenant got dunned for the electric and the owner was dinged for the utility bill. The problem was that if the bill had been in the tenants name and the owner didn’t know they had a big bill they were stuck with that bill.

Now the utility bill will only be in the owners name. What I plan to do as a property owner is send the bill to the tenant and allow them to pay it on line. The lease clearly states they are responsible for the utility bill. I will always know if it isn’t paid.

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[metrognome]

“Please note, as of July 15, 2011 new residential water/sewer/garbage accounts will not be opened in tenant names. Water/sewer/garbage accounts will be maintained in the owner’s name only. Owners and tenants may establish electric accounts in their names.”

http://www.seattle.gov/util/Services/Billing/Payment_ Options/NewCustomerRequirements/index.htm

if you want to know why …

“There are approximately 20,000 SPU tenant accounts. The financial management of those accounts should lie with the owners. SPU believes this change appropriately shifts administrative cost of managing tenant accounts from the rest of the rate-payer base to landlords.

“This change will align our processes more closely with Seattle Municipal Codes (SMC), specifically SMC 21.04.260, which states that all accounts for water shall be kept in the name of the owner of the premises.

“Additionally, the property owner is always ultimately responsible for the water, sewer, and garbage debt incurred by a renter.”

http://www.seattle.gov/util/Services/Billing/Payment_ Options/NewCustomerRequirements/FAQs/index.htm

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[Rainier]

I’m surprised to hear property owners were allowed to put water bills in the tenant’s name. Since unpaid bills can invite a lien on the property, the owner would be wise to have full control over that bill. Just factor in that cost when deciding what to charge for rent.

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[JanS]

sometimes rent includes the water/sewer/garbage, esp. if an apartment, since it’s difficult to split the garbage bill when everyone uses one dumpster. Some landlords sub-meter the hot water, and the bill in the past for that was in the tenants name. That happened to me 11 years ago in a previous apt.

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[WorldCitizen]

As stated above (from the city of Seattle):

“There are approximately 20,000 SPU tenant accounts. The financial management of those accounts should lie with the owners. SPU believes this change appropriately shifts administrative cost of managing tenant accounts from the rest of the rate-payer base to landlords.

“This change will align our processes more closely with Seattle Municipal Codes (SMC), specifically SMC 21.04.260, which states that all accounts for water shall be kept in the name of the owner of the premises.

“Additionally, the property owner is always ultimately responsible for the water, sewer, and garbage debt incurred by a renter.”

I’m just confused as to why something that was solely used by the tenant and not distributed by the landlord, should now be the responsibility of the landlord? Electric is handled this way. So are phones, internet, magazines, etc. Why is water, garbage, and food scraps (three things the tenants solely consume) all of a suden the responsibility of a person not using them?

If a tenant decides to not pay the final bill, then the landlord is stuck paying for their tenant’s usage.

I guess it would mean having to hold on to security deposits longer. Truly a hassle for both the tenants and the landlord alike.

Jan S: I rent out a single family home. The bills don’t need to be split.

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[metrognome]

WorldCitizen — not sure why my taxpayer and ratepayer dollars should go to do bookkeeping for people who own rental property. Per SMC, this should have been done all along, unless the city council just amended the code (which isn’t indicated in what the utility wrote. The SMC website stopped responding, but I was able to determine that this has been in effect for at least 10 years, probably longer.) Basically, this means you’ve unknowingly been getting a free service paid for by ratepayers. I realize this puts you at risk if a tenant pulls a midnight departure, but city ratepayers were on the hook when tenants could have their own account. Given the budget constraints, this seems perfectly fair to me.

As far as why City Light is different … I suspect the answer is buried in the history of how it evolved as a public utility:

http://www.seattle.gov/light/Accounts/Assistance/ac5_appq.htm

Note that the owner is responsible for charges if CL isn’t notified of the change within 10 days, so it’s not that different.

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[WorldCitizen]

It’s not “bookkeeping for people who own rental property”. It’s bookkeeping for people who use a service provided by the city. I don’t use that service. My tenants do. I don’t use their electricity, but my tenants do, therefore they are responsible for the charges and pay their own bill. Seems simple. I don’t use their cable service and therefore am not responsible for their cable bill. Same for my tenants’ internet services, etc. What makes water and garbage so different?

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[Rainier]

From http://www.mrsc.org/Subjects/pubworks/utilbill/collect.aspx “Water service liens are not true liens and can only be enforced by shutting off water service. Other types of utility liens, such as sewer, garbage and gas, which may be enforced against the property, are outlined in specific statutes. Legislation regarding liens for unrecorded utility charges was enacted in 1996 and codified in Chapter 60.80 RCW. The intent of the legislation is to provide a method for cities to collect unrecorded utility charges at the time of closing when property is being sold. The unpaid charges may include all lawful charges assessed by a utility even if not evidenced by a utility lien.” It goes on and there is a lot of helpful info at this website. I agree that the City is cleaning up language to reflect the law and there has been unintended free bookkeeping for homeowners of rental properties. Personally, I have lived in W.S. my entire life in rentals and not one landlord has put the responsibility of the water bill on my/my family’s shoulders. I’m sure it’s been included in the rent.

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[alki_2008]

As a landlord, I’m surprised that it would be considered a ‘hassle’ to have the utilities in the property owner’s name. w/s/g is a service for the property…it’s not the same as optional/metered services like a landline phone or cable or even electricity/gas.

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The chance that the tenant skips out on the final bill is just one of those risks that landlords have to face.

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@WorldCitizen – please keep in mind that, regardless of the timing of the final utility bill, you can’t keep the security deposit longer than legally allowed (14 days).

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