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Are the Utilities worth the work?

By
Services for Real Estate Pros with Homepointe

Having tenants be responsible for the water, sewer and garbage is a debate that may never end.   The costs for these services will continue to rise and the owners prefer to not pay them.  The problem is money--specifically the lack of money tenants have.  They will pay the rent, gas and their cell phone bill but the peripheral bills like the utilities get delayed like an over do hair cut.  It costs more in time to make sure they pay and avoid the late fees than may be worth it.  Agents who allow themselves to allot time for this ought to get compensated for it.  We require a small service fee to coordinate the billings and invoice the tenant.  It is very labor intensive to keep up with who paid what and when.  Any better ideas?

 

James Safonov

Homepointe Property Management

Comments (2)

Wallace S. Gibson, CPM
Gibson Management Group, Ltd. - Charlottesville, VA
LandlordWhisperer

Where is MUST pay utilities like propane and security systems under contract, I write that payment must be made within 5 days of billing * via e-mail * and that any uncollected amount will be taken from the NEXT rental payment! 

Never have a problem.

Sep 29, 2010 06:49 AM
Michelle Francis
Tim Francis Realty LLC - Atlanta, GA
Realtor, Buckhead Atlanta Homes for Sale & Lease

James, 

We also write a rough estimate into the lease that they pay every month and then settle up at the end of a lease term.  At the end, underpaid utilities can be taken from the security deposit. 

I agree, not a fun part of our jobs.  I try to avoid collecting and paying for any utilities, as too time intensive.

All the best, Michelle

Oct 03, 2010 02:16 PM