LANDLORDS ARE OFTEN LEFT TO FOOT THE BILL, WHICH CAN BE A SIGNIFICANT FINANCIAL BURDEN.
EFFORTS TO BILL LANDLORDS FOR UNPAID UTILITIES
UTILITY BILLING ORDINANCES
Some municipalities have enacted utility billing ordinances that hold landlords responsible for unpaid utility bills left behind by their tenants. These ordinances typically require landlords to be registered with the local utility company and receive copies of utility bills for their rental properties. If a tenant fails to pay their utility bill, the landlord can be held accountable for the unpaid amount.
LIEN ON THE PROPERTY
In some cases, municipalities have the authority to place a lien on the rental property if utility bills remain unpaid. This means that the property cannot be sold or transferred until the outstanding utility bills are settled. Landlords may find themselves in a challenging situation if they wish to sell the property but have unpaid utility bills attached to it.
REPORTING TO CREDIT BUREAUS
Some municipalities have agreements with utility companies to report unpaid utility bills to credit bureaus. This can negatively impact a landlord’s credit score and financial reputation, making it difficult for them to secure financing or new tenants in the future. Most utility companies don’t report to credit bureaus except in extreme circumstances, but that may change.
COLLECTION AGENCIES
In certain instances, unpaid utility bills may be turned over to collection agencies, which can pursue the landlord for payment. This can lead to legal action and further financial consequences for landlords.
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