You’ve got a couple or houses that you’ve rented out. The tenants pay their own utilities, and the utility bills are in their names. If the tenant skips out without paying the utility bills you figure you’re covered, it’s not your debt.
If your tenant skips out without paying their hydro the hydro company can and will go after you, the property owner.
Because of privacy laws the utility company cannot give tell you if your tenant is behind or by how much.
In some jurisdictions you can collect a hydro security deposit and in other jurisdictions you can’t. If you can collect a deposit you must pay the interest on the money deposited.
You could leave the hydro in your name and give the tenant a copy of the bill when it comes in, giving them 14 days to pay it. You might still get stuck with a hydro bill if they don’t pay it. The only way you can have the hydro service disconnected is if you don’t pay the bill. This option will have a negative effect on your credit rating. Also the tenants can take you to court for not paying the bill and having a vital service disconnected. They could end up with a large cash settlement in court.
The best thing to do in this case is to have a clause in the lease that the hydro or other utility is in their name and that they must provide you with proof of payment by a certain date. This date will depend on the billing cycle of the utility. You can also get the tenant to sign a form giving the utility provider permission to give you information regarding their account.
Breaking a clause in the lease is grounds for eviction and you should be able to get rid of the deadbeats before they owe too much. A good lease with all the right clauses is a good insurance policy against the professional tenant.
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