When it comes to managing rental properties, few things can create as much ongoing frustration as utilities. As a landlord, it may seem easier to keep utilities in your own name, but in reality, it often turns into a costly and time-consuming hassle. This article discusses why utilities should always be in the tenant’s name.
Why It Matters for Single-Unit Rentals
If utilities remain in the landlord’s name, bills fluctuate from month to month. That means you’ll constantly be adjusting rent, billing tenants for the difference, and possibly even chasing down late payments. Tenants may feel they’re being overcharged or treated unfairly, which can quickly sour the landlord-tenant relationship.
By placing Utah utilities directly in the tenant’s name, the responsibility for usage and payment falls on the tenant. This approach saves you time, eliminates monthly billing headaches, and keeps the arrangement clear and transparent.
What About Multi-Unit Properties That Don’t Have a Meter?
In some cases, especially with older multi-unit properties, there may not be a separate meter for each rental unit. Without individual meters, it’s impossible to bill each tenant for their exact utility usage. This often leads to arguments and debates about who is paying more than their fair share.
The best way to handle this situation is by charging a flat utility fee or adjusting the rent to cover average costs. This way, tenants know upfront what they’ll pay each month, and you avoid the ongoing disputes that come with trying to divide up a shared bill.
Check With your City
Each city in Utah County has different requirements when it comes to tenant utilities. For example, Orem City requires landlords to keep certain Utah utilities—such as water, sewer, and trash—listed in the property owner’s name. If you own an investment property in Utah, especially a multi-unit building or apartment complex, you usually cannot place all utilities directly in your tenants’ names.
That doesn’t mean tenants are off the hook. You can still set up access for tenants to pay their portion of the utility bill. However, it’s important to remember that if a bill goes unpaid, the responsibility falls back on the landlord. For this reason, understanding how Utah utility requirements work in each city is essential for protecting your investment and avoiding unexpected costs.
Final Thoughts
Whether you’re managing a single-family home or a multi-unit property, the key is to keep things simple and fair. For single units, always have the tenant utilities in the tenant’s name if possible. For properties without separate meters, include a flat fee or bundle utilities into the rent.
By handling utilities this way, you protect yourself from unnecessary hassle, ensure fairness for tenants, and create a smoother property management experience.
