HOW LANDLORDS CAN AVOID GETTING INTO THE SITUATION
While the efforts to bill landlords for unpaid utilities are becoming more widespread, landlords can take proactive steps to avoid finding themselves in this challenging situation: Thorough Tenant Screening One of the most effective ways to prevent unpaid utility bills is through thorough tenant screening. Conduct background checks, review rental history, and require references from previous landlords to ensure potential tenants have a track record of responsible utility bill payment. Include Utility Responsibilities in Lease Agreements Clearly outline in the lease agreement who is responsible for paying utilities. Make it the tenant's responsibility to set up utility accounts in their name and ensure timely payments. Additionally, specify the consequences of non- payment in the lease agreement. Utility Deposit or Prepaid Arrangement Consider requiring tenants to provide a utility deposit or set up a prepaid arrangement to cover potential unpaid utility bills. This deposit can be used to settle any outstanding balances left by the tenant upon moving out. Sometimes municipalities and utility companies require this if the bill is in the tenant’s name. If it’s in the landlord’s name, then the responsibility is on the property owner to get an equal deposit from the tenant. Check local laws to see if that’s an option. Regular Monitoring of Utility Accounts Stay vigilant by periodically checking utility accounts to ensure they are in the tenant's name and that payments are being made on time. If there are any discrepancies or unpaid bills, address them promptly. Communication with Tenants Maintain open communication with tenants regarding their utility responsibilities. Remind them of due dates and encourage prompt payments. Address any issues or concerns promptly to prevent the situation from escalating.
CONSIDER REQUIRING TENANTS TO PROVIDE A UTILITY DEPOSIT.
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