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Are you experiencing tenants that are constantly in arrears for their water billings?

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  • Are you experiencing tenants that are constantly in arrears for their water billings?

    This seems to be an ongoing issue for myself . A pain in the backside where out of 3 tenants only 1 pays their water bill on time and has never fallen into arrears, the other 2 are really hopeless.

    One of them currently owes me around $400 for around 5 months arrears. The other just over $200 for several months.

    I hate this because i have to spend time chasing it up and end up always having to present account summary's with clear invoice dates and any payments they have made.

    What is anyone else finding?

  • #2
    Originally posted by mrsaneperson View Post
    This seems to be an ongoing issue for myself . A pain in the backside where out of 3 tenants only 1 pays their water bill on time and has never fallen into arrears, the other 2 are really hopeless.

    One of them currently owes me around $400 for around 5 months arrears. The other just over $200 for several months.

    I hate this because i have to spend time chasing it up and end up always having to present account summary's with clear invoice dates and any payments they have made.

    What is anyone else finding?
    I have all my properties managed, but remember last time I DIY'd that this was an issue. The tenants had an understanding they'd pay an extra $20 per week for water. But over time the water usage was a little more than that, and they'd occasionally miss the water payment when they were short on money - rarely if ever short paid rent.

    It's a huge hassle that we have to on-charge this. Why on earth they can't put the fixed portion of the bill on the normal rates, and charge the tenants directly for volumetric water, I'll never understand.
    AAT Accounting Services - Property Specialist - [email protected]
    Fixed price fees and quick knowledgeable service for property investors & traders!

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    • #3
      Originally posted by Anthonyacat View Post
      ....

      It's a huge hassle that we have to on-charge this. Why on earth they can't put the fixed portion of the bill on the normal rates, and charge the tenants directly for volumetric water, I'll never understand.
      Heh, very easy to understand! If tenants had to pay, the credit control function would be double, tripled .... plus all the extra staff to turn down the water supply answer the extra phone calls from tenants. Follow the money.

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      • #4
        "I hate this because i have to spend time chasing it up and end up always having to present account summary's with clear invoice dates and any payments they have made."

        I think there needs to do something about this problem.

        Also, if the water/power is included in the rent or fixed weekly fee, some tenant tend to abuse it.
        They literally leave the power day and night and the bill would be more than double.
        In that case, if the law changes, you can't even raise the rent for 1 year.
        You can't change the contract unless they agree.
        What would you do then?

        Any solution for this?







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        • #5
          Originally posted by artemis View Post
          Heh, very easy to understand! If tenants had to pay, the credit control function would be double, tripled .... plus all the extra staff to turn down the water supply answer the extra phone calls from tenants. Follow the money.
          If that were a valid argument, why not extend it to power, internet, Sky TV? Perhaps not Netflix as that's mobile.

          There's a fixed daily charge on the power bill, it's just usually hidden inside the volumetric rate. Internet and Sky charge the same regardless of usage. Doesn't that make them fixed charges and thus the companies can argue the landlord responsibility?
          AAT Accounting Services - Property Specialist - [email protected]
          Fixed price fees and quick knowledgeable service for property investors & traders!

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          • #6
            Anthonyacat, I would insist not necessities of life, thus on the tenant.

            mrsaneperson, issue 14 day notice, then apply tribunal for mediation if they don't pay. Sometimes that's the jolt needed to bring in line.
            Then, suggest they pay extra with the rent and you can then do a wash up periodically and refund them or request extra, just don't let it get too far.
            With WINZ clients and similar doing rent+water in one payment a week helps them with budgeting.

            In June each year you can request Watercare charge you annual fixed charges in one lump (if in Auckland).
            They no longer require tenants contact details however didn't publish this or notify me after our many requests for this change last year.
            I only had time to change personal properties.
            Next June we will ask our clients if we can shift them, it makes billing tenants so much simpler.
            Thanks to APIA for the initial push for Watercare to bill FC annually.
            Rentex Limited Property Management - Est. 1988

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            • #7
              In essence you, as the Landlord, are the unwilling and unpaid debt collector for Watercare.

              Why do they do it, when the power/phone/internet companies don't?
              Because they are a monopoly, so can act like one.

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              • #8
                Originally posted by flyernzl View Post
                In essence you, as the Landlord, are the unwilling and unpaid debt collector for Watercare.

                Why do they do it, when the power/phone/internet companies don't?
                Because they are a monopoly, so can act like one.
                I believe the official line is that water is required to be supplied to the property whether it is occupied or not, so not tenant-dependent, while other services are not supplied to empty houses but are contracted by the residents.
                My blog. From personal experience.
                http://statehousinginnz.wordpress.com/

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                • #9
                  Is water any more essential than electricity ? After all it falls from the sky

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                  • #10
                    In 24 of my tenanted properties the water is directly charged to the tenant as they have agreed to it
                    Signed a statement allowing to be charged directly ...was 25 but one did not pay the bill so the account reverted back to me

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                    • #11
                      Originally posted by Beano View Post
                      In 24 of my tenanted properties the water is directly charged to the tenant as they have agreed to it
                      Signed a statement allowing to be charged directly ...was 25 but one did not pay the bill so the account reverted back to me
                      Ultimately you are still responsible for the Watercare bill if the tenant does not pay. Therein lies the problem.

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                      • #12
                        Originally posted by mrsaneperson View Post
                        Ultimately you are still responsible for the Watercare bill if the tenant does not pay. Therein lies the problem.
                        Yes that is correct ...with power it lies with the tenant

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                        • #13
                          Also, if the tenant does not pay AND Watercare then adds a monetary penalty to the bill, YOU as the Landlord (not the tenant, who's lack of action created the penalty) are responsible for payment of that penalty.
                          Reason? Because it is a charge not directly related to water consumption.

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                          • #14
                            Landlords being more responsible than tenants on the whole, the buck stops with the landlord.
                            Squadly dinky do!

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