Tenant not paying water bills

N

New_Investor

Hi SS gurus,
I have a situation and I wish you can advice for help. I bought an IP 7 months ago, tenant is paying rent on time, went for inspection and they are keeping the property in a very good coniditon, clean, tidy, flowers in the backyard,...etc.

I have done a 3 months contract, then 1 year. all going well so far.

I got the first water bill, and I sent the REA for the usage, and I didn't get feedback or payment done, it was a very small amount around $15. however it is not paid, Spoke to the REA, and she said she sent it around a month ago, and she will follow up.

now I got the 2nd water bill and the usage is $130, and I sent it to REA 2 weeks ago, and I still did not receive the money. Sent today to the REA to call them and chase it.

What do you guys think I should do, I do not want to be pushy, and at the same time, if the tentant default on bills and no action is taken, tomorrow they may default on rent.

Please advice, your response will be highly appreciated.

Thanks
Ram
 
Pay it yourself then forward to the RE agent might be an option, this is what we do where the tenant is liable to pay for water.
 
Last edited:
hugh72 said:
Pay it yourself then forward to the RE agent might be an option, his is what we do where the tenant is liable to pay for water.
Click to expand...

Thansk Hugh,
I did that, but the tenant needs to pay it as well, as this is their consumption. and it is not agreed that I will pay for their water consumption.

Thanks
Ramez
 
They sound like excellent tenants so personally I would tread with caution.
If a breach notice is sent it could go all the way to eviction, weeks of vacant property, re lease fees and to be competitive, you may even have to include water to get in new tenants.

Perhaps put it in writing that as a gesture of goodwill you will cover the first one, it is only $15. Cash flow may be an issue so a compromise is also possible.

Divide the outstanding by 12 weeks and suggest they pay this amount in addition to their rent to cover water usage and continue with this set up for each bill of water usage, if suitable and accepted by parties involved. You, tenant, prop. Mgr. They may appreciate not having one big hit and the opportunity to spread out the payment and will not be in breach of lease. Would get prop mtr to suggest in writing and have it agreed in writing to back up lease agreement.

If you allow the water bills to build up and deduct from bond there is nothing left to have as security in the event you need to claim from the bond.
 
Mitch1 said:
They sound like excellent tenants so personally I would tread with caution.
If a breach notice is sent it could go all the way to eviction, weeks of vacant property, re lease fees and to be competitive, you may even have to include water to get in new tenants.

Perhaps put it in writing that as a gesture of goodwill you will cover the first one, it is only $15. Cash flow may be an issue so a compromise is also possible.

Divide the outstanding by 12 weeks and suggest they pay this amount in addition to their rent to cover water usage and continue with this set up for each bill of water usage, if suitable and accepted by parties involved. You, tenant, prop. Mgr. They may appreciate not having one big hit and the opportunity to spread out the payment and will not be in breach of lease. Would get prop mtr to suggest in writing and have it agreed in writing to back up lease agreement.

If you allow the water bills to build up and deduct from bond there is nothing left to have as security in the event you need to claim from the bond.
Click to expand...


Thanks Mitch,
I like this option, and as they are good tenants, I will be happy to keep them in the house if they would like to extend. and pay the bills for sure.

I did make noice for the first bill as the value is low. but this is the second bill. Will see what the property manager will come with. and based on that will see what action to take.

I will update this post once i get response.

Thanks
Ram
 
New_Investor said:
Hi SS gurus,
I have a situation and I wish you can advice for help. I bought an IP 7 months ago, tenant is paying rent on time, went for inspection and they are keeping the property in a very good coniditon, clean, tidy, flowers in the backyard,...etc.

I have done a 3 months contract, then 1 year. all going well so far.

I got the first water bill, and I sent the REA for the usage, and I didn't get feedback or payment done, it was a very small amount around $15. however it is not paid, Spoke to the REA, and she said she sent it around a month ago, and she will follow up.

now I got the 2nd water bill and the usage is $130, and I sent it to REA 2 weeks ago, and I still did not receive the money. Sent today to the REA to call them and chase it.

What do you guys think I should do, I do not want to be pushy, and at the same time, if the tentant default on bills and no action is taken, tomorrow they may default on rent.

Please advice, your response will be highly appreciated.

Thanks
Ram
Click to expand...

Have you talked to the real estate agent since? It may just be simple miscommunication between the agent and the tenants. I would think that the agents would treat the outstanding water the same as outstanding rent and would follow it up in a timely manner. Perhaps a courtesy call from the agent to the tenant would give you and the agent the answer and maybe solve this before it gets too messy. That's where I would have started when the bill became overdue.

Once when I took over a portfolio, some tenants had direct debit arrangements in place and the agreement included water but the previous agents only processed the rent and never debited the water.. Your situation can be different but sometimes the answer is more simple than we think and communication always helps
 
I hate the way the water co's force the primary liability onto owners. I think it also results in over consumption of water (due to 'runners')
 
See if council will put a water restriction device on the metre which is something
some do if they don't get paid , Im told its not nice with a trickling warm shower.
 
Ace in the Hole said:
Don't stress, if they don't pay it, take it from the bond on vacation.
Just make sure the outstanding bills don't get too large.
Click to expand...

The problem with this is if the water bill doesnt get paid,its only a matter of time before rent gets behind(like stopping a month before vacating........just take it from the bond mate),and any other issues that may come about on vacating,the bond will be stretched.
 
The tenant is in arrears for water invoices. It needs to be treated the same as arrears for rent.

Breach notice should have been issued and if not rectified within time frame then application to tribunal for payment plan needs to be put in place.

If the normal procedures have not been followed then instruct your PM to follow them now.
 
nww said:
See if council will put a water restriction device on the metre which is something
some do if they don't get paid , Im told its not nice with a trickling warm shower.
Click to expand...

they will probably litigate the owner before they restrict the water
 
Pay water bill yourself, then forward to PM. They'll then have the tenant pay either just the usage or both the usage or supply depending on what the lease specifies.

If the tenant doesn't pay it on time you can breach them.

Also act says, any monies received has to be attributed towards rent first and foremost.
 
Mitch1 said:
They sound like excellent tenants so personally I would tread with caution.
If a breach notice is sent it could go all the way to eviction, weeks of vacant property, re lease fees and to be competitive, you may even have to include water to get in new tenants.
Click to expand...

ASSUMING the contract and the communication are right, I don't see how you can say tenants who are not brassing up on their obligations are excellent tenants. They are dodgy tenants. By definition.

But first you have to check that the communication was right in the first place.

If that is in order, breach them. Not to do so is to forfeit your rights.
 
Get the water bill sent to the real estate rather than you so they take care of it. I just gave the account details to my real estate and they arrange to have the rates and water sent to their office and they take care of it. less complicated than you getting involved
 
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