When picking up new accounts it always a good idea to instruct your new clients on how to handle the transition. Some utilities are to be paid by the owner, others by the tenant. The management company may also pay some of the utility bills on behalf of the owner out of rental income. When determining who is to pay for what, a simple plan is to divide them up as fixed and variable bills. Fixed costs are the owner's expense: mortgage, taxes, insurance, HOA, sewer and garbage. Variable costs are the tenants to pay: gas, electric, phone, satellite, water, etc. It is important to instruct your owner clients to cancel their services a day or two after the tenant is to move in--they ought to also notify the utility companies that a management company is authorized to interact with them. Maintaining this simple practice can alleviate unnecessary problems during the transition of setting up an account and adding a new tenant.
James Safonov
Homepointe Property Management
#916-78-17075 x650
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