Landlord Products / Services
Unfortunately, not a totally uncommon scenario, when tenants vacate a rental property and leave behind a trail of unpaid utility bills. It’s happened to me on a few occasions, and the nonsense never seems to get any less frustrating.
Here’s a brief rundown of what happened when my deadbeat tenants’ left me with a bunch of unpaid bills (and in the crosshair of several debt collectors), and also an overview of where landlords stand if they find themselves in a similar situation…
Table of contents
- Who is responsible for unpaid utility bills? Landlords or Tenants?
- How Landlords can avoid being held responsible for Tenant utility bills
- Utility bills tenants are usually responsible for…
- Who is responsible for utility bills when the property is vacant/empty?
- When utility bills are in the Landlord’s name, but paid by the Tenant
- My [evicted] tenant left behind unpaid utility bills – here’s what happened!
Who is responsible for unpaid utility bills? Landlords or Tenants?
So, before I start babbling about my story (which I appreciate many of you won’t stick around for because this is likely the main information you’re after), let me give you the lowdown on where you stand.
I suspect this will come as welcome news to most landlords…
Landlords are not responsible for utility bills or any debts left by tenants during the tenancy or after they vacate, provided the bills are in the tenant’s name and the tenancy agreement clearly states that tenants are responsible for utilities.
Unpaid utility bills are tied to the account holder(s), not the property itself.
If, for any weird reason, a utility supplier has you, the landlord, in their crosshair, because there are outstanding bills, you typically just need to provide them with a copy of the tenancy agreement. That should confirm that the property was occupied by the tenant and that they are legally bound by the terms of the agreement to be responsible for the utility bills (presuming that is actually the case), and that should give them a new target. If applicable, the supplier may also request meter readings, but that’s usually when they’re pursuing debt left by the tenant after they have vacated the premises.
How Landlords can avoid being held responsible for Tenant utility bills
Critical.
This is critical.
I’ve made the mistake of not doing things the right way. And I suspect many other landlords have also kicked themselves in the face for partaking in the same tomfoolery.
The right way…
- Tenancy Agreement: if the occupants are responsible for utility bills, ensure your tenancy agreement includes a clause explicitly stating tenants are responsible for all utility bills during the tenancy.
- Register tenant details with Utility Providers: personally contact and inform utility companies at the start of a new tenancy about the tenant’s details to ensure the accounts are correctly set up in the tenant’s name – make sure they’re actual account holders, and not just authorised contacts. I would not leave it in the hands of your tenants (I’ve been burned by doing that in the past, more about that disaster further down). If you do, make sure to follow up with the suppliers to confirm that the accounts are actually registered under your tenant’s name.
- Take Meter Readings: Document initial and final meter readings at the start and end of the tenancy.
- Keep copies of Key Documents: Retain copies of the tenancy agreement and meter readings in case you need to prove that the responsibility lies with the tenant.
- Communicate with Utility Suppliers: Notify utility providers promptly when tenants move in and out to ensure records are updated and any leftover debt is traced to the correct person.
Personally contact all utility suppliers and notify them that the previous occupants have vacated. Provide the details of the new occupants or, if you’re expecting a void period before new tenants move in, register all accounts under your name to ensure there are no billing issues during the interim period.
Utility bills tenants are usually responsible for…
Typically, tenants are responsible for paying utility bills, including:
- Water
- Electricity
- Gas
- Council tax
- Internet / Broadband
Who is responsible for utility bills when the property is vacant/empty?
This can depend, but it’s usually the landlord.
If a tenancy agreement has been terminated and a tenant has legally vacated the property, the landlord or property owner will be responsible for any utility bills during any void periods.
As mentioned in the safeguarding section, it’s crucial to notify utility suppliers when a tenant vacates and if there’s going to be a void period, so all accounts can be transferred to the landlord’s name during that time.
If a property is vacant but the tenant is still a legal occupant (i.e., the tenancy agreement has not been officially terminated and the landlord has not legally gained possession of the premises), the tenant will still be responsible for the utility bills.
When utility bills are in the Landlord’s name, but paid by the Tenant
This is a very stupid situation and one that should be avoided at all costs. Don’t do it. I mean it.
Okay, okay, you beat it out of me!!
Yesss! I’m bloody guilty. I was foolish enough to get caught in this beartrap myself.
CUT ME SOME SLACK.
Lesson learned. And now I’m writing about it in my memoir (I’ll get to what happened to me shortly).
I’m not saying I find any comfort in numbers, but this is a tragically common scenario, often caused by landlords who take their eye off the ball.
What usually happens is that there’s a general agreement at the start of the tenancy between the landlord and tenant that the tenant will be responsible for the utility bills. The problem, however, is that the utility accounts are registered under the landlord’s name. So if the tenant falls behind on any bills, the landlord could be held liable for the outstanding debt.
In my experience (and this is completely anecdotal), what happens in this situation largely depends on the supplier – specifically, how much mercy they’re willing to show.
If the landlord can prove that the tenant is responsible for the bills (e.g. by providing a copy of the tenancy agreement), despite the accounts being registered under the landlord’s name, the supplier may show leniency and realign the liability towards the tenant.
It’s a coin flip.
If you’re in this situation, plea your case, and hope for good fortune. I hope the old and new gods are looking down on you favourably.
My [evicted] tenant left behind unpaid utility bills – here’s what happened!
Yay, we’re finally here. Story and self-reflection time – the part of the blog post absolutely no one came here for! Well, whatever. I’m going to have my dear diary moment regardless.
One of my problem tenants’ recently vacated after being served an eviction notice for massively falling behind on rent. Lordy, let me tell you, what a pair of self-entitled assholes! But I won’t get into that today.
Unsurprisingly, they left behind a whole host of unpaid utility bills, which is pretty routine when tenants fall into rent arrears. Experience has taught me that when someone is in rent arrears, they’re usually behind on other bills, too.
The unpaid utility bills totalled to approximately £400. Not an earth shattering amount in the grand scheme of things, but enough for me to throw a hissy fit. Bear in mind, I had already accepted that I wasn’t going to recover the rent arrears (for various reasons), so I was extremely reluctant on allowing them (the husband and wife duo) burden me with their lousy utility bills also.
Informing the utility provider of the situation
When I contacted the gas & electricity provider, Powergen (now known as e-on), to notify them that the tenants had vacated the premises due to falling into rent arrears and to stop chasing the arrears from the property, I was mortified to discover that the tenants had never actually transferred the accounts into their name. Instead, they had only added themselves as mere contacts – despite the fact that I had told them [my tenants] to transfer the accounts when they initially moved in, and they had assured me it had been done.
Well, SHHHHHHIT! They screwed me like a kipper.
Upon hearing the news, I heard an almighty crash. It was my stomach falling out of my ass, because I knew my fate was sealed. I was certain I had no way out, and was destined to lose even more money because of these numpties! It’s not so much about the money (although that is definitely a concern), but more about being taken advantage of – I know I was a good landlord to them.
Fortunately, it seems as though I managed to catch a break after pleading my case.
The Powergen customer service rep informed me that if I could prove my tenants were actually occupying the property during the period the unpaid bills account for, I wouldn’t be liable. They would then initiate a debt collection process on the tenants instead of me.
Hallelooya!
So I frantically emailed Powergen a copy of the tenancy agreement, which proves that my tenants had been occupying the property during the period the bill was incurred, along with a cover letter, which briefly reiterated the situation.
It seems that, in this incident, the fact the account was under my name during her occupancy wasn’t going to prevent justice from being served. As mentioned, I’m not sure if this is standard policy across all suppliers, but I wouldn’t be surprised if it’s not. In any case, I’m very grateful to Powergen, because they literally could have told me to pay up and be done with it (and I would have)!
Bottom line: if you’re in a similar position, where one of your tenants vacated your property leaving behind unpaid bills, then don’t worry, all is not lost. Probably!
Has anyone else had similar problems with tenants leaving behind unpaid bills?
Disclaimer: I'm just a landlord blogger; I'm 100% not qualified to give legal or financial advice. I'm a doofus. Any information I share is my unqualified opinion, and should never be construed as professional legal or financial advice. You should definitely get advice from a qualified professional for any legal or financial matters. For more information, please read my full disclaimer.
i went guarantor for my sons x through a letting agency she is on benefits who paid the rent direct to her, she faild to pay 2 months rent now the rent is paid in part to the letting agency £30 short which she fails to pay increasing arears. i have spent £300 on leagal advice, but the landlord rightly wants whats owed to him.she has been given 2 months notice to hand back the property.has anyone been in this nightmare situation and give me some peace of mind is there any light at the end of the tunnel so to speak