Transferring utility responsibilities can be one of the more challenging aspects of renting out a property. Ensuring a smooth handoff of accounts is important for maintaining reliable utility service and avoiding any billing issues down the line. This guide will walk through the step-by-step process for transferring the electricity bill to a new tenant.
How does a landlord typically handle electricity responsibility?
Typically, electricity is considered a utility that tenants are responsible for. As the landlord, you can include the average estimated electricity costs in your rental rates. However, it's generally preferable to transfer the electricity account into the tenant's name. This allows them to shop for electric plans and rates that suit their needs while removing you from any liability for unpaid bills.
Related: What Is The Average Electricity Bill For Apartment?
What information will the tenant need to set up electric service?
For tenants to set up their own electric account, they will need the address of the rental property as well as account and contact information for the current electric provider. As the landlord, you should provide this information to make the transfer seamless. The tenant may also need their driver's license, state ID or social security number. Having the existing account details on hand makes switching the service much simpler.
How do tenants contact the electric company?
Tenants should start by contacting the electric company servicing the property to inform them of the upcoming move-in date and request information on setting up a new account. Most major electric providers have online account registration pages or apps that allow applications to be submitted digitally with required documents.
Tenants can also call the company's customer service line or visit their local office in person. Advance notice of 2-4 weeks is typically recommended.
What happens during the transfer of services?
Upon submitting the application, the electric company will verify the tenant's identity and set up the new account. They'll also obtain final readings from the landlord's existing account on the move-out date. The services will then be switched over accordingly.
The tenant should receive their first bill within 30 days reflecting usage during their tenure. The landlord's responsibility for the electric bill ends once this handoff is complete.
How can issues during transfer be avoided?
Problems can occasionally arise, such as a delay in removing the landlord from billing or mixing up move-in/move-out dates. To avoid this, the landlord should contact their electric provider directly to confirm that the tenant has successfully established their own account before their move-in.
Early and open communication between parties is key. Landlords can also provide tenants with their electric provider's contact information beforehand to help troubleshoot any hiccups.
What other utility transfers should landlords be aware of?
Along with electricity, landlords are also responsible for informing tenants regarding responsibility and transfer processes for other utilities. Natural gas, water, cable/internet, and trash collection are among the services that should be clearly delineated in the lease agreement and explained to tenants during walkthroughs. Advance planning makes these transitions between parties as seamless as possible.
What recourse is available for issues with utility responsibility?
If problems do arise with unpaid bills or improper transfers of utility accounts to tenants, landlords and tenants have options to resolve disputes in accordance with state and local housing laws. These may include working directly with the provider to resolve billing/account issues, pursuing small claims court if security deposit deductions are challenged, or filing complaints with regulatory agencies as a last resort.
Adhering to lease agreements and proper notification serves to prevent most issues from escalating.
Conclusion
In summary, properly outlining utility responsibilities in the lease and walking tenants through the transfer process for accounts like electricity is crucial. With early preparation and ongoing communication between landlords and renters, transitions of services can occur without hassle.
