However, if you want to acquire a foreclosure, things can get tricky and costly. If someone defaulted on their house loan, you can guarantee there are other debts attached to the property, such as unpaid property taxes, utility bills, and possibly even a code violation or two.
After closing on a bank-owned property in Fairport, N.Y., a woman was slammed with a $4,000 energy bill. The bank refused to allow the Monroe County Water Authority to enter the property for additional readings for nearly a year after a meter reading was taken right before the house was foreclosed on. The city finally turned off the water, but not before approximately 1.3 million gallons of water had been consumed! The lending company and the contractor are baffled as to where all of the water went. The house showed no traces of water damage. Unfortunately, no final reading was performed prior to the closure, and the new owner is now responsible for the bill.
Water and power are frequently turned off in bank-owned properties. This makes a thorough property inspection, which is strongly advised for all buyers, practically impossible. If a seller refuses to turn on the utilities so you may check the property, it’s a sign that there are severe concerns that need to be addressed. Upon acquiring the property, many banks will do an examination, and they may share this paperwork with you. However, as the woman in Fairport discovered, it may not be up to date and represent current due balances.
The only method to avoid being obliged to pay a prior owner’s utility costs is to acquire a final reading on all utility accounts before closing.
Who is responsible for unpaid utilities found after closing? The buyer or the seller?
The majority of utility bills and other special levies for hookups and improvements are transferred to the property:
Trash & Electricity
These accounts are usually kept by the person who created them. If the corporation is a local government subsidiary, it may be entitled to place a lien on the land. It is subject to local and state laws.
The majority of water and sewer providers are public entities that can place a lien on a property if bills are not paid. If the water and sewer provider is a private corporation, overdue invoices may be sent to collections in the name of the previous owner rather than the property.
Many individuals, including real estate professionals, advise that gas costs, like electricity bills, belong to the individual account holder, but there are some peculiar exceptions in specific places. The city of Clearwater in Florida, for example, provides gas services to inhabitants not only inside its jurisdiction but also in neighboring towns. Some of the cities that the City of Clearwater serves are located outside of its governing county, in Pasco County. If the city’s gas bills aren’t paid, the city can place a lien on any of these properties.
Other Special Evaluations
Special assessments levied by public entities are another factor to consider before purchasing a home. The property may currently be served by a well and septic system, but if the city has assessed it for water and sewer hookups, the new owner will be responsible for the balance of the costs. Road paving, street lights, and stormwater are some of the other municipal services for which residents are frequently paid. This information is sometimes itemized on your property tax bill, however some counties and municipalities keep records of overdue assessment amounts on a property with a different agency. Buyers must ensure that all relevant document requests are issued to the appropriate municipal departments.
It’s critical to speak with a local real estate expert so you can grasp the issues that will effect your closing. When you interact with an agent or attorney, you can rest assured that you will receive all of the relevant documentation and reports. Keeping an attorney on retainer is a smart idea since they can provide legal advice that a real estate or title agent can’t, even if they can provide important advice.
In Florida, do tenants have to pay their water bills?
When renting a single-family home in Florida, tenants are normally responsible for setting up their own utility accounts and paying the bills for electricity, gas, garbage, and water.
In Florida, who is responsible for overdue utility bills?
Summary:A utility supplier may not pursue payment from the landlord or refuse new service to the property if the utility bill is not in the landlord’s name, according to Florida law.
Due to an unpaid utility payment when service was in the name of a previous tenant, a utility company or even a municipality providing water and sewer services may refuse or cancel service to either the owner or a prospective tenant.
180.135 of the Florida Statutes
Utility services; rejection or termination of services due to nonpayment of service charges by a former resident of a rental unit is forbidden; unpaid service charges of a former occupant are not a foundation for a lien against the rental property, save in exceptional circumstances.
(1)(a) Regardless of any other provision of law to the contrary.
No municipality may refuse or discontinue utility, water, or sewer service to a tenant or prospective tenant of a rental unit for nonpayment of service charges incurred by a previous occupant of the rental unit; any such unpaid service charges incurred by a former occupant will not be the basis for any lien against the rental property or legal action against the current tenant or owner to recover such charges except to the exte
(b)This section only applies if the former occupier of the rental unit contracted for such services from the municipality, or if the municipality provided services with knowledge of the former occupant’s name and the time period during which the occupant received the services.
(4) If a (residential) tenant fails to pay service costs to a municipality for the provision of utility, water, or sewer services, the landlord has the right to initiate eviction proceedings.
If the utilities were in the name of the previous tenant, the Act applies.
If the landlord had put down a deposit on the utility account, the statute would still apply if the municipality had been given the name of the previous renter and the length of the tenancy. When it comes to
Who is liable for non-payment of utility bills?
When there are numerous tenants living in the same house, bill conflicts are common. The most important thing to keep in mind is that the person whose name appears on the bill is ultimately responsible.
This means that if all tenants in a house share or HMO rental unit have their names on a utility bill, they are all equally responsible for debt repayment, even if only one tenant hasn’t paid.
In Florida, may a landlord charge for water and sewer?
Our landlord just began charging for water usage, despite the fact that four apartments share the same water meter. I believe the yard sprinklers and pool water are also connected to the meter. When there isn’t a separate water meter for each flat, may a landlord charge for water usage? If that’s the case, shouldn’t the bill come directly from the water and sewer company?
Water usage can be charged by a landlord to tenants. I’m not aware of any state or local laws requiring a separate water meter at this time; however, legislation is being considered in numerous states that may impose particular restrictions and limitations on the landlord’s power to allocate water and sewer rates. Of course, the landlord should split the water cost fairly and not charge renters for water used for landscaping and pool maintenance. Several commercially accessible Residential Utility Billing Systems (RUBS) services or software are designed to apportion water usage between renters and landlords. Some are based on the square footage of each unit, while others are based on the number of residents, and so on. In your scenario, the landlord can charge each tenant for their water usage if the allocation mechanism is fair and reasonable, and the billing can be done directly between the renter and the landlord without the involvement of the water district. However, as a backup for the water and sewer payments, I would recommend that the renters be provided a copy of the actual water bill received and paid by the landlord.
Is it possible for a landlord to be held accountable for a tenant’s utility bills?
Although tenants are normally responsible for paying utility bills, if they fail to do so, the landlord may be held liable. If the leasing agreement does not clearly transfer obligation to the renters, this is likely to occur.
When renting a home in Florida, who is responsible for paying the utilities?
The expense of utilities is frequently shared between the landlord and the tenant. Water and sewer, as well as garbage collection, are typically paid for by the property owner, whereas cable and internet are the responsibility of the tenant. While the payment for natural gas and electricity will normally depend on the circumstances, having the tenant pay for these products can be more convenient.
What Can’t a Florida Landlord Do?
Florida landlords are prohibited from asking potential renters questions about their medical history, age, disability, familial situation, ancestry, national origin, marital status, sexual orientation, religion, color, or race under the Fair Housing Act. Tenants cannot be treated unfairly because of any of these factors.
Is it possible for a landlord in Florida to switch off utilities?
A landlord cannot switch off any utility service, including water, heat, light, electricity, gas, elevator operations, garbage collection, or refrigeration, directly or indirectly, according to Florida Statute 83.67, even if the landlord is paying for the service.
During void periods, who is accountable for bills?
When a tenant moves out, the landlord is responsible for all utility payments until a new renter starts their contract. It is best to reduce energy use and utility outgoings to a minimum during these void times, which are often referred to as void periods. To avoid mold and potential maintenance expenditures, you’ll need to maintain the heater on a timer.
Utility providers will request a meter reading on the day the prior renter exited the property as well as the day a new tenant takes over, so your bills will be computed based on the usage of the property between these dates.
What should you do if a tenant fails to pay their rent?
If outstanding utility bills are registered in the tenants’ names, I wouldn’t be concerned. This has occurred to me a few times, and it’s a simple fix.
Remember that overdue utility payments are the responsibility of the account holder, not the property (s). The only reason my situation was tense this time was that I was still the account holder.
If your tenant has vacated with unpaid bills and is the account holder, all you have to do is notify the utility companies, and they will stop sending bills to your home. They’ll almost certainly ask for the tenant’s forwarding address, but don’t worry if you don’t have one (many landlords don’t in this situation).
This serves as a reminder of the importance of having formal tenancy agreements.
While I’m not sure why, I know a lot of eccentric landlords who don’t bother getting a written contract in place. It’s simply incredible.
- Even if your renters have moved out, keep your leasing agreements. They can be particularly handy in situations like these.
- As previously said, I cannot guarantee that all service providers follow the same policy! But I’m presuming foolishly that most people do! So long as you can show that your tenant was the occupant during the bill’s validity period, they should be held responsible.
- When new renters move in, double-check that all of their accounts have been moved to them. I made the error of not double-checking, but I will now double-check with the service providers directly. Don’t rely on your tenant to do it!