Utilities: The Burden of Proof

Has this ever happened to you?  A tenant checks out, signs a lease and moves in.  Everything is great.  Then a month later, you get an electric bill for the property.  And from the looks of the bill, the tenant has been powering the whole neighborhood.  Then, as you blow your stack, you have to turn on the air to bring your blood from boiling down to normal.  Does this sound familiar?  Founder/Managing Partner Lamar Hunt Jr. has experienced this…once.  “When you make a mistake, make it only once.”  Loretto Properties now writes into the lease that the keys will not be turned over until proof of utilities in the tenant’s name is provided.  This is a simple way to not get burned for the tenant’s utilities.  But even if you do get burned, the tenant is still responsible for reimbursing the landlord so long as the lease requires the tenant to pay for the utilities (which is another mistake you don’t want to make).  See our blog at http://lorettoproperties.com/ for more real estate investing tips or call us at 913-236-2902 if you have house to sell.