RentalProperties.com Tips for Landlords- Leases Issues--Who pays for what?
Utilities - Who pays for what?
Be as specific as possible in the written lease to what utilities are to be paid for by the tenant and which, if any, by the owner or landlord.
Some examples of utility fees for rental properties include:
1. Heating: Does the unit have Gas or Electric Heat? If heating bills are the tenant responsibility, the tenant may want to ask the prior or current tenant what the monthly bills are so they can budget appropriately.
2. Air Conditioning: We may forget to ask about air conditioning if we are renting in the winter or cooler weather. It should be defined in the lease whether there is central or window air conditioning, if any, and whose responsibility it is to change the filters, main appliance contracts, replace window units, pay the utility bills.
3. Trash and Sewer Bills: Some landlords provide for the minimum trash disposal ie one trash can collected per week. What is considered 'excess trash' should be written into the lease and payment responsibility specified.
4. Water bills: Who pays the water bill? Is there an 'excess water' surcharge? Are there special water charges for a pool or landscaping? As water sources become more valuable, are there prohibitions against watering a lawn or washing a car?
Utilities - Who pays for what?
5. Tax bills: The bills for local, state and federal real estate and school taxes are usually paid for by the owner or landlord.
6. Cable bills: Cable bills are usually paid for by the tenant but the tenant should ask 'Is the Rental Property Cable Ready?' If the rental property does not have cable (or satellite) hook-up, who will pay for this access?
Some short term rentals, ie vacations properties at shore or mountain locations, provide cable, premium cable and wired or wireless internet access as part of the rental property agreement. In all cases, it is better to ASK and have it as part of the lease.
7. Telephone: Some tenants may choose to avoid having a 'Land Line' or wired telephone connection. This may represent a risk during a power failure or emergency where cellular service is down. As a landlord, you may want to insist that a basic wired telephone service is required of all tenants.
The information on RentalProperties.com is intended for informational purposes and not guaranteed. Please consult with an attorney or your own professional advisor regarding your specific situation.
