Lease says we pay a utility company, but we have been instructed to make checks payable to the office. Bill is allocated, but lease does not explain method, and it was not disclosed. I want to purchase money orders, but withhold them until either the lease or the method of billing is changed.
I'm not entirely clear as to what the situation is here, but I'll try to at least lay out your options.
A residential lease agreement must provide for utility services to the dwelling, and the lease agreement itself should specify whether the tenant is responsible for paying the utility bills or the landlord is responsible. This includes, of course, electric service.
If the lease says that the tenant is responsible for electricity payments, then the tenant has the responsibility to set up an account with the utility provider and must stay current with the billing invoices to secure continued service (i.e., if the electricity gets shut off, it's the tenant's fault, not the landlord's.)
For some types of residential tenancies (such as renting a room in an owner-occupied home, for instance) it is common to have all of the utility service in the owner/landlord's name, and have the tenant then simply pay a portion. Often this is done by lumping an estimated amount of the utility bills in with the quoted rental price.
Some landlords try to take advantage of tenants, however, by including multiple dwelling units on a single electricity meter, for instance, and then over-charging each of their respective tenant residents for utility services that they did not themselves use.
I'm not sure what you mean by "bill is allocated" but you may be referencing a situation similar to the above.
When the landlord is responsible for the utility service, though, it's not uncommon for them to occasionally get a good deal on service, while the tenant likewise may occasionally get a better deal. (For instance, if the service is included in the rent, there's a flat monthly charge that's estimated and already incorporated into each total monthly rental bill. Sometimes the actual usage will be significantly lower than estimated, and thus the landlord is making money on the savings. Other times, if the usage is particularly high, the tenant might ultimately be saving money and costing the landlord. You can guess which likely happens more frequently.)
In any event, you should be able to verify the amount of usage for each utility you're responsible for. If the bills aren't coming directly to you, then you should ask your landlord for copies. Finally, if your landlord wants you to make monthly bill payments directly to their office, you should require them to modify the lease agreement.
Similar to late fees, a landlord can't evict you for non-payment of utility bills (especially if the lease specifically indicates that you're to pay the utility company directly) as they can only seek an eviction for non-payment of the rental amount. They can, however, seek to collect on the money other ways, including by sending the debts to a collections agency or proceeding to recover the amounts in court.
How you should respond to the situation depends on the circumstances of what's really going on with the bill payment, and the answer to that just isn't clear with the information in your post. Generally speaking, if you're afraid of potentially losing your home to an eviction, it's usually a good idea to play nice with your landlord. Of course, if you believe you're overpaying for a utility service and, more importantly, being asked to perform contrary to the specific provisions in your lease, you should have the landlord clarify the issues -- in writing -- and work to modify the lease to accurately reflect the situation.
I hope that helps? (Not sure if it did.) If you have any other questions, feel free to contact a local landlord/tenant attorney in your area for a consultation. Good luck!
Orion Jacob NesslyFamily Law AttorneyLake Oswego, OR ·
Mr. Parks has already provided you with an excellent and detailed answer. Why not tell your landlord you'd want to pay the utility company directly? Or, why not contact the utility company and get the service in your name? If by "allocated," you mean that you are not the only ones on the bill (for example, you're renting a room in a house and have agreed to pay your share of the bill), then it does sound like you paying the utility company directly could be difficult. In this case, why not just pay the landlord, but protect yourself by asking for a copy of the monthly bill and saving proof of your payments, such as carbon copies of checks that have been clearly labeled something along the lines of "electric bill (April)"?
Finally, your landlord may not succeed based on a 72-hour notice of termination based on non-payment of these bills like they would for nonpayment of rent, but that doesn't mean you cannot be ultimately evicted if this because a major issue.
Nicholas Patrick MerrillContracts / Agreements LawyerPortland, OR ·
Excellent answers have been provided, but I write to note that the precise language of your lease is important, as well as the details of your living situation. It does not sound like you are renting in an owner-occupied home, since you "have been instructed to make checks payable to the office." Are you in a mobile home park? I suspect you may be on a communal electricity delivery system since you mention allocation of the bill. Or is this an apartment complex with a property manager? These details will be important in determining your best course of action. It would be wise to politely ask to see the bills, ask for an explanation of the billing method, and, if necessary, reference the language in the lease which controls over any verbal modification to pay at the office.
