It’s happened over and over again. A landlord for whatever reason doesn’t cut off the utilities prior to the tenant taking possession. Later the tenant fails to pay rent AND isn’t paying the landlord for the utilities.
Landlord’s first reaction: cut off power. Hold on, not so fast.
Even though the lease says the tenant is responsible for all utilities, if the landlord cuts off the power in landlord’s name then that tenant stands a good chance of getting an eviction dismissed. Also, it opens the door for the non-paying tenant to bring a suit against the landlord! I know, this is ridiculous, but this is the way it is.
So abide by my rule: 1) Make sure your WRITTEN lease memorializes that the tenant shall put all utilities in its name & 2) CUT OFF the power in Landlord’s name prior to giving Tenant possession. Don’t make exceptions. Exceptions cause indigestion & lost profits.
Call Kirk Sanders at 336-724-4707 to handle your commercial leases, residential leases, evictions, collections and landlord lawsuits.