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Los Angeles Property Management advice, when you rent a property the main question asked is, “Who will pay for the utilities?” There are basic advantages and disadvantages of combining utility cost into part of the rent, always having to pay special attention to frequent problems of utility abuse.

Utilities

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Los Angeles Property Management utilities are basically three services supplied to a home, this includes electricity, gas, and water.

There are times when Los Angeles Property Management companies must include utilities because they are all on the same meter because they’re located on multifamily property. If not, Los Angeles Property Management companies do not have to pay for them, though to connect them is a must no matter what. Once a tenant settles, they must be able to contact the appropriate services to access the sewer system, water, gas, and not forgetting power, as enforced by habitability laws.

Most Los Angeles Property Management companies entitle you to keep the utility bill under your name, this means that you must never fail to pay a bill. Because, it is quite an expensive mistake, since utility access is essential to health as considered.

Los Angeles Property Management companies allow tenants to handle utilities, which sometimes means you are protected from that risk of them falling under payment default, noted by Erin Eberlin from the  New York Landlord. If bills are left unpaid, she then stated that, “the landlord would not face health and safety violations because the landlord is still providing access to the utilities,” she says. “It was the tenant’s fault that the utilities were shut off.”

Include Or Not To Include Utilities

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Though forgetting to pay bills could be one reason not to be included in utilities with rent, there are sometimes a few reasons you might want to combine the two.

  1. Charging more rent

The obvious is to charge more for an apartment when you include utilities. There are some tenants that appreciate not having to pay the extra bills.

A Los Angeles Property Management apartment that is valued at $1200 with no utilities, if it does include utilities and it raises the rent to $1350. The Los Angeles Property Management company estimates that $150 will cover the costs since it is a one bedroom apartment.

  1. More applicants “pro, no extra utility fees”.

Few applicants are only interested in apartments where they don’t have to pay the extra utilities.

  1. Appealing to those potential tenants with governmental assistance

Public assistance programs, could include Section 8, this advocates housing that includes utilities. There is though, a major benefit of renting to people in this category, described by Eberlin. “You are guaranteed payment each month so you don’t have to worry about chasing the tenant down for the monthly rent,” she says.

  1. Updating the property to make it look more valuable

When a Los Angeles Property Management company advertises a vacancy, combining utilities effectively makes your property look more valuable to most potential buyers, though there are those who don’t check to see if utilities are included, go figure.

How Los Angeles Property Managers Deal With Arguments On Excluding Utilities

Los Angeles Property Management companies sometimes state that It’s not necessarily always a good idea to include utilities, as with the issue of nonpayment previously discussed.

  1. Losing control

The issue with utilities is one that is immediately obvious, you could charge whatever amount you want, but the tenant could always use more, this means effectively you lose money on these bills each month. Always seek specific advice on what to do when tenants abuse utilities.

  1. Keep away tenants who want a separate bill

Some tenants will want to pay for utilities themselves, this makes them savvy and efficient with those who don’t want to overpay during months when heating and cooling aren’t particularly needed.

  1. Also keep away investors who want separation

If looking to sell the property, you could run into the same issue with buyers as also done dealt with renters. “If the landlord is responsible for all utilities, it will dissuade certain buyers, limiting your buyer pool,” stated by Eberlin.

Los Angeles Property Management Companies Preventing Utility Abuse

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Los Angeles Property Management companies make note that there are three basic ways to handle “utility abuse”, if a tenant is using excessive when utilities are not under their name.

  1. Make sure to include a clause with a specific dollar amount.

One thing to do is to include a clause in the lease that will give an exact amount of money within the rent that is going towards utilities. Once the limit is reached, the tenant will owe additional funds the following month.

  1. Adjusting terms.

Los Angeles Property Management companies sometimes use a month to month agreement or a lease that permits them to adjust parameters via a Notice of Change of Terms. If a tenant maxes out on utility use, you must notify them and make them aware that any excess use from then on will be billed on the next month.

  1. Los Angeles Property Management companies able give monthly rebates.

The Landlord Protection Agency (LPA) recommends this clever strategy to avoid any disagreement about utilities in two family rentals. Utilities are normally put in the name of a primary tenant, with this known rent is dropped each month according to the expected utility use of another tenant.

The rent of the primary tenant is always high enough to allow for these rebates to apply, while the additional tenant has utilities that are included with their rent. “The lease must reflect that the tenant receives a $XXX monthly discount in order to comply with any shared meter laws (if any),” explains the LPA, “or just to show the main tenant that he is being more than fairly compensated.” stated by Eberlin.

 

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Posted by: emoss on June 16, 2016
Posted in: Uncategorized