Don’t Get Stuck with the Water Bill When Selling Your Home

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Recently, I was at a closing with a client who was selling his investment property. One of the charges on the closing statement was $1,800 for the water bill that the tenant hadn’t paid. During this process, we learned a few things that will help you save money in the future.

First of all, an unpaid water bill is tied to the property, not the account holder. In other words, if you have a renter who doesn’t pay the water bill, that bill will eventually be tied to the property.

Upon the sale of the property, any unpaid water bills are then passed to the owner of the home. So, buyer beware - if you’re buying a rental property (or any property) and there is an unpaid water bill from the former tenant, you will get stuck with the bill and you won’t know about it until it’s time to close on the property.

When my client tried (unsuccessfully) to remove the $1,800 bill, the Miami Department of Water and Sewage told him that there was an additional $2,600 of unpaid water bills. He was advised to look for a leak. The Water and Sewage Department only recognizes two reasons for a high water bill: usage or a leak.

If you have a water leak, you can negotiate some of the bill payment. However, if there is no leak and the high bill is due to usage, you are responsible for the full payment. You may need to “create” a water leak and get a plumber involved if you want to negotiate with the Water Department (which does have a system to verify leaks).

“

Put the water bill in your name
 so you have more control
 of the situation.

”

The Water Department will let bills accumulate, and tenants have ways to get out of paying their water bills. To avoid any issues with rental properties, make sure the water bill is in your name and then just pass it along to the tenant. That way, you know if the bill is not being paid, you will have a tighter grip on the situation, and you can terminate the tenancy.

If you have any questions, give me a call or send me an email. I would be happy to help you!