Managing tenant turnover is a routine but often cumbersome aspect of owning single-family rental property. One of the most frustrating parts of this process for landlords and property owners is handling utility transitions.
Why Utilities Can’t Stay in the Management Company’s Name
One common misconception among landlords is that property management companies can simply switch utilities into their name during a tenant turnover. Unfortunately, that’s rarely possible. Most utility providers do not allow property management companies to place accounts in their names. As a result, when a tenant moves out and cancels their service, there’s often a brief gap before the new tenant moves in.
During this gap, utilities must be active for essential activities such as property inspections, cleaning, and make-ready maintenance. That’s where the owner must step in.
The Owner’s Role in Utility Management
Once a tenant gives notice to vacate, property owners will receive a heads-up from their management company. This advance notice allows owners time to contact the utility companies and activate service in their own names. While this may seem like a hassle especially if the vacancy is only for a few days it is crucial for ensuring a smooth turnover process.
Inspections, vendor work, and timely make-ready efforts all depend on having water and electricity available. Without them, these activities are delayed, potentially pushing back the next lease start date.
Transitioning Back to the Tenant
As soon as a new tenant moves in, the responsibility for utilities transfers once again. Tenants are expected to set up utility service in their name starting on their lease commencement date. This seamless transition helps avoid lapses in service and ensures that owners aren’t charged for utilities longer than necessary.
While there’s no perfect solution that eliminates this temporary inconvenience for landlords, timely communication and proactive scheduling can minimize the disruption.