Why should property managers require utilities to be put in the renter’s name before giving them the keys?
Imagine you're a property manager with a flexible approach to your move-in policies. Such as not requiring tenants to activate utilities before they move-in. It's tempting to think, "If tenants prefer to delay their utility setup and navigate their new space in the dark, that's their choice, not mine." But is this approach genuinely beneficial for both parties?
Let's explore why timely utility setup is a cornerstone of a smooth and successful tenancy.
What issues can happen if the renter does not set up utilities before the move-in?
- Discomfort and Inconvenience: The lack of basic utilities like electricity, water, and gas disrupts daily life, making it difficult for tenants to perform essential tasks, leading to a significant inconvenience.
- Potential Damage to Property: The absence of utilities, especially during extreme weather, can lead to significant property damage, such as frozen pipes or overheated appliances, resulting in costly repairs.
- Legal and Relationship Issues: Delays in utility setup can strain the tenant-property manager relationship and lead to legal challenges, as tenants expect and are entitled to habitable living conditions from day one.
- Property Owner Bill Back: When utilities are in the property owner’s name through the vacancy period, they pay the bill until the utilities are switched to the tenant's name. Calculating the pro-rated utility bills and invoicing your owner incorrectly can frustrate your investors.
- Safety Concerns: Without essential services, tenants may resort to unsafe alternatives for lighting and heating, increasing the risk of accidents and fire hazards. Imagine tenants using candlelight or a propane camping stove top before they set up utilities.
The Utility Profit tool makes utility setups so much easier for tenants that requiring proof of setup before giving the keys is a no-brainer.
What are the benefits of ensuring utilities are set up before the move-in?
- Easy to enforce the new policy: With one simple change to your welcome email template, watch utility confirmations come flowing in. Never need to search your email for confirmations.
- Spend less time on utilities: Your leasing agents have an organized and streamlined tool to track utilities. Spend less time billing back the tenants later. Our tool nudges tenants for you, so you don’t need to chase down tenants yourself.
- Found Revenue: You can monetize the move-in, as renters are more likely to purchase internet (the revenue generating utility) when they use the tool to set up their utilities.
- Better renter experience: You’re helping the renter see around corners and protect themselves from problems with their move-in.
How do I set up and enforce this policy?
- Communicate your policy right after you approve an applicant, as early and often as possible.
- Send an additional reminder to tenants to activate utilities before the move-in. Utility Profit’s product has built-in reminders. All you have to do is provide the tenant’s contact information and we’ll do the rest.
- Check your dashboard for green checkmarks. Review the Utility Profit dashboard a few days before their lease start date. Ensure the tenant has confirmed their utilities.
- What to do if renters don’t connect utilities? Do not give renters the keys to the property until the utilities are confirmed in your dashboard. Optionally, charge the tenant a fee for not setting them up in time.
- Consider adding a bullet point to your lease explaining this requirement. The text for your lease template is below.
FAQs
Isn’t this just the renter’s problem, not mine?
Answer: No, the renter’s problem quickly becomes your problem and can lead to bad reviews online and hostile renter relationships.
Will tenants actually complete utility setup before their lease starts?
Answer: Yes they will! We’ve made it easy to complete, so there should be no excuses.
Can we legally deny renters the keys? Even if they have signed the lease?
Answer: Yes, if you update your lease template.
Optional: Copy and paste the following text into your lease template:
Utility Activation Requirement: To ensure a smooth and comfortable transition into your new home, we require all tenants to activate necessary utilities, including electricity, water, gas, and services, before move-in day. This policy is designed to safeguard your comfort, health, and safety from the moment you step into your new residence. Please provide proof of utility activation at least 24 hours before your move-in date. Failure to comply with this requirement may result in a delay in your move-in process, as our goal is to ensure your home is fully prepared and habitable from day one. We appreciate your understanding and cooperation in creating a seamless and positive move-in experience.
