Hi All,
First time I have planned for renting home and I have few question. I'll appriciate if experiance CD person answer my questions.
I have bought brand new home for investment purpose which is still under construction and I have plan to rent it out. Actually, I already got tenant and we signed the lease and tenant is responsible for all utility bills including rent of hot water tank.
Closing date from builder: 20th August
Tenant possession date: 1st September
I will be responsible for all utility bills from 20th August to 30th August and tenant will responsible from 1st September.
How can I ensure that all utility bills will be on tenant's name from 1st September?
Should I close my all accounts (hydro, water, gas) and tenant should open new accounts?
OR
Should I call utility companies and transfer on tenant's name? Do I need to pay any fees for transfer?
What about rent of hot water tank? (Reliance sends bill every quarter)
Can I transfer this bill on Tenant's name?
Thanks in Advance
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Success is Never Ending and Failure is Never Final.
Location: Western Hemisphere
Posted on: 19-06-11 12:45:13
Legally, you can contact the utilities and have them disconnect the utilities from your name. However, as a matter of smooth transition and not to burn bridges with your tenant, you should remind the tenant to absolutely make sure they transfer the utilities in their name as of the date you wish. You can check if they have done it or not by calling the utility companies.
In reality, there might be a overlap for up to a week between you and the tenants. You cannot transfer it to the tenant's name. The tenant has to do it. The only leverage you have, in the event of a disagreement, is to disconnect the utilities and that would force the tenant to pick it up.
The tenant may have to pay a transfer fee. When you transfer it back to your name if the tenant leaves, you may end up paying transfer fee to get it back to your name.
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Dimple2001
Quote:
Originally posted by meitsme
How can I ensure that all utility bills will be on tenant's name from 1st September?
did you call the companies to inquire?
I rented a place where I paid utility. Landlord informed me to contact utility company and have things setup under my name from the date as per agreement. My guess is he already informed them to disconnect it from his name.
It was simple, no complications..
TIP: When I contacted them, i was told it is better to call at least 1 week in advance. I would/did contact them at least 10 days in advance.
good luck
Thanks for your response.
It helps lot.
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Success is Never Ending and Failure is Never Final.
Also, I am thinking about 1 year Fixed mortgage rate for this investment property.
What do you suggest for investment property?
Scotiabank offers me 2.64% for 1 year fixed.
Any idea about better offer than Scotia?
Thanks,
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Success is Never Ending and Failure is Never Final.
Quote:
Originally posted by meitsme
Also, I am thinking about 1 year Fixed mortgage rate for this investment property.
What do you suggest for investment property?
Scotiabank offers me 2.64% for 1 year fixed.
Any idea about better offer than Scotia?
Thanks,
I personally am comfortable with a mortgage broker who can shop around for various institutions and give me the best rate available.
As long as it is a house,
If i remember correctly the utility companies allow different kind of setup in a landlord/tenent setup , where u are still on the utility connection but the tenant is responsible for paying the bill.
The utility company will bill the tenant directly.
I know someone who has done this in a similar situation like urs..
Call up embridge to find out more details..
