VIC $2,200 leaking gas bill.

Discussion in 'Property Management' started by GoneFishing, 8th Dec, 2021.

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  1. GoneFishing

    GoneFishing Well-Known Member

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    Hi all,

    My tenants copped a $2,200 gas bill(normally about $180 for 60 days) due to a gas leak. The leak was discovered after the gas meter going into the property, so the tenant has coughed up the money and now I have to pay them back.

    My question is shouldn't the gas provider known that there was an issue and emailed \ called my tenant to let them know of the high usage? Especially given the low usage over the 3 years that they have been in there. Seems like negligence on the gas's companies part.

    What are my options? I've called my insurance company, but even then, I have a $1,000 excess. Anybody ever had this happen and how did you go about it?

    Best scenario would be for gas company to accept responsibility of not notifying customer and they refund the tenant accordingly. Worst case, I have to cough up the $1k excess and insurance company pay the rest(If they pay it that is!).

    Thoughts?

    Thanks.
     
  2. The Y-man

    The Y-man Moderator Staff Member

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    Did you talk to the gas company?

    We've had water leaks, but not gas....

    The Y-man
     
  3. Mark F

    Mark F Well-Known Member

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    You may have got off lightly. Imagine if somebody was searching for the source of that annoying hiss with a candle :eek:
     
  4. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    Welcome to property ownership. Its your gas plumbing. Surely the occupants smelled the gas leak!! $2k is a LOT of gas. The gas company wont notice as the leak was after the meter. Thats why they add the odour. Lucky its wasnt more damage from a fire.

    It wont be insured unelss a event damaged the meter / pipe eg a car hit it. A tree hit it. Its a maintenance issue.

    You can deduct the repair and the tenant reimbursement.
     
  5. Joynz

    Joynz Well-Known Member

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    The gas company might reduce the price a bit - if you ask nicely.

    But it’s not their fault and it’s not negligence (they’re not your or the tenant’s Mum!).

    The $1,000 excess hurts. But it’s swings and roundabouts - you’ve saved in the past by not having such a high excess - you can always reduce it next time you renew your insurance.

    A leak in the open air may very well not be noticed at all.
     
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  6. thatbum

    thatbum Well-Known Member

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    While I probably would have also reimbursed the tenants myself, the law is actually somewhat grey on this issue of who foots the bill for a 'leak' where there hasn't been any negligence or failure to maintain the premises by the lessor.

    It's possible that the tenants would legally have to bear the costs of extra 'consumption' and the lessor's obligation is to simply fix the issue once it comes to light.
     
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  7. Scott No Mates

    Scott No Mates Well-Known Member

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    It could be a faulty meter or the tenants have been running a still/meth kitchen 24/7.

    I have the tiniest of leaks on my service (barely raises a bubble in soapy water) and can smell it 6m away. The tenant should have notified.

    Was a repair done to the service or is it still leaking?
     
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  8. datto

    datto Well-Known Member

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    I thought the gas has an odour so you know when it leaks. Lucky no smokers near by.
     
  9. GoneFishing

    GoneFishing Well-Known Member

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    I had two plumbers go out who verified there was a leak, but both couldn't locate it. Had to replace the whole bloody gas line which cost me $1,100.
     
  10. Michael Mitchell

    Michael Mitchell Well-Known Member

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    Had a similar situation but with a water leak, it had probably been leaking for a long time, this is the approach I took:

    upload_2021-12-8_21-57-16.png
     
  11. willair

    willair Well-Known Member Premium Member

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    With that sort of volume of gas leaking ,I think the tenants and you are very lucky that the property as if that were to explode the outcome would be very different.
     
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  12. Tom Rivera

    Tom Rivera Property Manager Business Member

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    ^ THIS ^

    I'd recommend coming to some sort of compromise with them, I don't feel like you're 100% responsible for the excessive usage and many Landlords would refuse to pay any of it.

    Also, ask the Tradesperson where the leak was and if they felt like it would be reasonable for the tenants to have smelled the leak? It might have been somewhere where it just wafted away outside immediately (i.e. unreasonable for tenants to have identified the issue), but it could have had an apparent odour that you could expect the tenants to have identified and reported.
     
  13. Joynz

    Joynz Well-Known Member

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    The OP said (#9) that the plumber couldn’t identify where the leak was and so had to dig up the whole pipe!
     
  14. Tom Rivera

    Tom Rivera Property Manager Business Member

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    Ah! Thanks for that, missed it. That changes things.

    Well in that case maybe contact the utility supplier and ask if they have offer any compensation for hidden leaks- I know you can do that with water bills?