Is a Subtenant Responsible for the Master Tenant's Unpaid Utility Bill
My question involves landlord-tenant law in the State of: Ohio
Hi,
I have an unique situation now. I signed a sublease on 20th May, 2015 through the apartment management for an apartment which was previously being rented by a Chinese guy. He left the apartment without paying his utility bills, which none of us (me and the apartment management) was unaware of until I received the bill from the energy company yesterday. The bill shows that he didn't pay the last month bill of $82.88 and so the utility company added that previous balance plus $10 late fee to my new bill of this month.
Now, during the lease signing I asked the management to stop the service under the previous tenant's name and start the new service under my name on 20th May onward. But, I was told that they just need to switch the name and nothing needs to be stopped or started.
No, when I received this bill I contacted the utility company and told them that I was not responsible for the previous balance as I only had the keys from 20th May onward. So, they need to contact the previous tenant regarding his dues. But the utility company told me that as the apartment management did not stop and start a new service under my name they would consider that I'm liable of the previous outstanding bill.
So, then I contacted the apartment management and asked them to fix this. At this point, the management first told me that they actually tried to save my money as the utility company would have charged me $150 as deposit, so that's why they just switched the name instead of stopping and starting new service. Then I replied them that I would have preferred to pay $150 as deposit because that's refundable and I'll have it back from the utility company when I'm no longer a customer (in fact that happened to me before). Then, after a while the management replied me that there is nothing they can do as I "released" the previous guy from lease by signing the sublease and so any previous balance would be my responsibility. They advised me to contact the previous tenant to pay for his dues. However, I was told that he left the country as sometime ago when we tried to contact him for some reason there was no response and he told one of the apartment person that he was leaving the country.
Then I went through the lease documents and I see that there are sections where it's stated that resident has to pay the utility bills.
Now, here are my questions:
1. How come I was a "resident" when I was NOT on the lease prior to 20th May? If I was NOT a resident for the time period, the disputed bill is concerned, why should I even bother?
2. Both utility company and the apartment management are asking me to try to get a hold of the previous tenant. So, if I have an account (say, for cable) and I don't pay the bills, then is it not the responsibility of the company to go after me? So, why are they asking ME to do their part of work?
3. The management kept saying that the financial responsibility would be solely mine in case of any prior dues. Why? Didn't they also sign the sublease with me to "release" him from the lease?
4. Now, the apartment management accepted the fact that they "switched" the names on 20th May. That means I never signed any documents for this utility, it was the apartment management who hooked me up, right? So, if that's the case, why should I be even bothered for this bill? I'm not saying I won't pay the utility, I always have been paying and I will, but why should I be charged for somebody else's portion of bill?
Any insights would be appreciated!
Thanks in advance for reading!
Re: Is a Subtenant Responsible for the Master Tenant's Unpaid Utility Bill
What does your written contract with the master tenant say about responsibility for utilities, and transfer of utilities from the master tenant's name to your name? What, if anything, in the contract would make it the landlord's duty to stop the utility service in the name of the master tenant or to apply for utilities in your name?
Re: Is a Subtenant Responsible for the Master Tenant's Unpaid Utility Bill
Thanks for the question. I'm not sure if I understood your question very well but all I signed was an one page document called "Release of Liability". On that page it was written (which both me and the master tenant-who moved out signed) as: "The undersigned remaining occupants agree that the departing resident is no longer responsible for the lease with respect to the above premises and that the undersigned shall remain jointly and severally responsible for all obligations under the lease" And just before this statement there is a line stating: Resident released from liability: Master tenant's name.
That's all I have. To my understanding, this means I've been added to the lease on 05/20/2015 and should follow ALL the rental responsibility beyond that date. But my question still remains as this only document where I signed didn't say anything about utility transfer/switch or stop/start service and as I'm become part of the residency from the said date the apartment management was supposed to be starting a new service from 05/20, but they didn't do that.
So, should I fight for it? Or, juts take the bullet and pay the whole bill?
Re: Is a Subtenant Responsible for the Master Tenant's Unpaid Utility Bill
From what you told us, you are a subtenant. You have not told us that you were added to the lease, and the document you describe (while potentially depriving you of recourse against the master tenant, your landlord) does not add you to the lease. Even if that document ostensibly added you to the lease, it does nothing to make the landlord responsible for anything in relation to utilities for your unit. You appear to be stuck with the bill.
Re: Is a Subtenant Responsible for the Master Tenant's Unpaid Utility Bill
I am not up on CA PUC practices...but seems to me that at best you have a contract with the prior tenant to hold him as prior master tenant harmless. You do not have a contract with the energy provider to pay them. The provider looks to thier customer of record to pay.. Once you become the new customer of record you pay for new usage plus any required security essentially the date you sign up with the firm for service...and they generally make a new read of meters.
As an aide, your use of terms is confusing...are you a sub tenant or are you the new master tenant
Re: Is a Subtenant Responsible for the Master Tenant's Unpaid Utility Bill
It's not unusual for a utility company to require that an unpaid balance for a residence be paid in full before they'll open a new account for an customer, even if there is a change of owner or occupant.
Re: Is a Subtenant Responsible for the Master Tenant's Unpaid Utility Bill
I agree the utility firm may try....but the PUC regs may prohibit the denial of service to a new resident simply because the supplier has a uncollected bill with a prior resident. The supplier can seek any reasonable deposit as allowed by the regs as to the new clients usage etc. ( I worked for a large utility and am familiar with that issue ...but NOT as they may play out in CA )
Re: Is a Subtenant Responsible for the Master Tenant's Unpaid Utility Bill
Thanks for all the inputs and sorry for late response from my side.
OK. I'm a subtenant. I signed a 2-page sublease document, where cosigners were the prior tenant, and apartment staff.
It is an 1-bedroom apartment, previously rented by 1 person, and now solely by me.
My questions in my first post here still remain as of now. So, I am posting here our email exchanges for you to read and hope from these emails you'd have the clear idea about the situation.
My email to the Energy Company
Hi,
I received a wrong bill which I'm disputing. The bill has a "Previous Balance" carry over, which is $82.88 and a $10 late fee. I would like to inform you that I am a new tenant and I received the keys from the apartment management on 20th May, 2015. Any charges before 20th May was NOT under my name as I moved i on 20th May. The new lease started from 20th May, 2015. So, I'm NOT responsible for any previous charges and associated fees. You have to contact the person who had account with you until 19th May, 2015 for any previous balances. You cannot charge me for the balances which I was NOT responsible. So, please correct and adjust the whole bill starting from 20th May, 2015 until the current billing cycle. Thanks in advance!
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Energy Company’s response
Good morning,
Thank you for your website contact. We received communication from your Leasing Office that a Lease Take Over/Name Change should be performed on
XXX Utility Account #XXX. This action removed the previous tenants name from the account and placed your name on the account, holding you
responsible for utilities at this location. There was no stop in the lease or utility account at this location throughout the process of this name
change.
We would recommend reaching out to the previous tenant or your Leasing Office at XXXXX regarding this information. As we are
contracted to provide services by your property, we are contractually obligated to maintain account records based on the information that is
provided and confirmed by their representatives.
As a courtesy to you, we have removed the $10.00 penalty fee applied towards this account. Once this charge was removed, your current balance
reduced to $211.48. This balance includes charges that were applied on the account from 04/15/15-05/15/15 totaling $81.88 as well as new charges for
the billing period of 05/15/15-06/15/15 that amounted to $129.60. This amount is due on 07/03/15.
Should you have any additional questions, or if we may be of further assistance, please do not hesitate to reach back out.
We are available to assist you via telephone or email Monday through Friday from 8:00 a.m. through 6:00 p.m.
(See attached file: XXXXX Account Ledger.pdf)
Thank you,
Customer Support Group
My email to the Apartment Management
Hi XXX,
I received a bill from XXX which indicates that there was a previous balance from the previous tenant, which I'm not responsible for as I was added to the lease and only have the keys from you from 5/20/2015. I asked you to stop the XXX service and restart it from 5/20/2015 but they said that the name on the account was only changed and so they sent me the whole bill starting from 5/15/2015 with the previous balance of $82.88. I'm not legally responsible for these charges as my name was NOT on the lease until 5/20/2015 and so please contact XXX and/or the previous resident on this matter to adjust the bill accordingly.
Thanks in advance!
Apartment management’s response to my email
We did switch the XXX into your name as of 5/20/2015. If we would have moved the other person out of the system and then you right back in to the system, you would have been charged a $150 deposit from XXX. By changing it to your name, we saved you the $150 deposit charge. Taking that into consideration, you still are ahead $67.12.
If you are still unhappy, I would suggest reaching out to XXXXX to pay his portion of the bill.
When you are added on to a lease, you take the unit as is, charges as is, etc.. When you agreed to release XXXXX of liability, you released him of all financial responsibility to the unit.
Per the lease you are required to keep utilities on and in your name during the duration of the lease.
As I said, the best route would be to try to get a hold of XXXXX to pay his portion of the bill, but if we would have moved him out of XXX's system and you into XXX's system, you would have been charged a $150 deposit from XXX.
Let me know if you have any other questions.
Best Regards!
Senior Community Manager
My response to the Manager’s email
Hi XXX,
I would have been okay with an initial deposit, if required by XXX because I would get it back when I am no longer an XXX customer. This is what happened with me for YYY as they refunded me the deposit in due time. So, even if it's more I prefer that. But, the carried over charges are not my responsibility, as you understand. I'm willing to have the adjusted bill from XXX starting from 5/20/2015 and if they wanna have a deposit with their new customer policy I'm fine with that.
Thanks!
Manager’s response to my email
Again,
Unfortunately with the add/release process, when you signed on to the lease, you agreed to financial responsibility of the lease. When you signed XXXXX off, you took over sole financial responsibility of the lease.
For example, if you took over the lease while XXXXX still owed us $300 in rent, that debt would now become yours. Same goes for utilities.
The best advice I can give is to try to contact XXXXX to do right thing and pay his portion. Unfortunately there isn't a whole lot either XXX or we can do to change your bill, as typically in an add/release situation, those being added/released have worked these details out prior to.
I hope that helps!
Best Regards!
Senior Community Manager
Re: Is a Subtenant Responsible for the Master Tenant's Unpaid Utility Bill
Advice to international organizations and private entities on all aspects of the Energy Charter process and the ECT
Re: Is a Subtenant Responsible for the Master Tenant's Unpaid Utility Bill
It is unclear if you took over an existing lease or entered a new lease.
There is a whole lot of finger pointing that does not necessarily add up to a contract or a legal duty for you to pay..
I'm not in CA or reading your lease ...but my suggestion to myself would be to submit the required deposit to the utility with a very short clear written letter that it was the deposit as required for your account for all matters of consumption AFTER XX date., your account # ZZ and NO comments more.
I can suggest to you from experience with a large utility that matters get very expensive for the utility if it gets kicked up " to legal"' and even more so if it results in a complaint to public utility commission.
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You may have sign something with Mgt .....but utility was not party to same .
Terribly sloppy change over to a new tenant .