Re: utilities in contract? - Posted by Dave T
Posted by Dave T on March 13, 1999 at 17:51:50:
I have kept utilities in my name when renting property and it has worked reasonably well. My tenants do not have to pay extra deposits to the utility companies to establish an account in their name, and I ensure that the utilities bills are paid on time. My lease requires the tenant to reimburse the landlord for the utilities expense.
Why not set up a utilities escrow account with your buyer? Estimate the next three months of utilities expense and have your buyer put that amount into an escrow account.
At the end of each month, have your buyer reimburse the escrow account for the amount of the month’s utilities expense. You both mutually agree on how long you will maintain this arrangement. At the end of that term, the buyer establishes the utilities account in her name and you transfer the balance of the account to her. The balance should be enough to pay the next month’s utilties expense and any account setup fees/deposits that may be required.