Utility Shut-off for Non-Payment is NOT Reported to Landlord

You would think that as the landlord you would have a right to be notified if the gas or electricity were to be shut off in one of your units. But you don't. We aren't sure whether it's consumer privacy regulations or utility company policies. Either way, when a tenant is cut off for non-payment, you won't know. If you call, you have to catch a customer service representative off guard to find out. If they realize what they're supposed to do, they won't tell you.

Now pay attention to this fine detail: the gas company is not allowed to shut off the heat in the winter. This means a tenant can skip out on the gas bill until the spring, at which time their gas will be shut off.

This protects tenants and landlords alike from mid-winter disasters, somewhat. But not telling the landlord has serious implications for vacancies that drag on into winter.

Suppose the gas or electric company does shut off the supply when legally allowed to, in the summer. Now suppose the tenant leaves and the vacancy carries into the cold winter months. You might think your thermostat would at some point kick in, but not if the heat has been shut off. You might not realize that you have no heat until the next time you enter the building.

For this reason, you should always be prompt to activate utilities in your name at the start of a vacancy. This is especially true if the outgoing tenant was at risk for not paying the utilities (e.g., eviction). You should never allow a vacancy to extend into the winter without verifying that your accounts are set up and the utilities are working.