Utilities upon settlement

Discussion in 'Property Management' started by tattoo, 11th Apr, 2018.

Join Australia's most dynamic and respected property investment community
Tags:
  1. tattoo

    tattoo Well-Known Member

    Joined:
    20th Sep, 2017
    Posts:
    123
    Location:
    NSW
    Some newb questions on utiltiies
    I've heard that on day of settlement, I need to make sure that all utilities are disconnected from the rental property and outstanding bills are paid by vendor.

    Is it the vendor's responsibility to do the disconnections and/or do I have to call up the utility companies to get it switched to my name from that date ?
    Is the outstanding bills paid as part of settlement (allocation of remaining purchase amount) - I assume that is the vendor's responsiblity ?

    Water bills - Can I split the bill in the future so the usage bill goes to the renter and I get the other charges (eg. sewage/drainage) ? If yes, do I just call up the water authority? Or is it standard practice water bills usually included in rent?

    Electricity/gas - do I connect new account with supplier and send the renters the bill ? Or leave to renter to arrange for themselves ?

    Council rates - with change in ownership, will this automatically be changed to my name ? Or do I need to call them up and make sure its changed ?

    Thanks
     
  2. TheRayTracer

    TheRayTracer Well-Known Member

    Joined:
    21st Jun, 2015
    Posts:
    190
    Location:
    Melbourne
    Once you own the property and if you're renting the property out, in Victoria, the tenants handle the connection of gas and electric. Also, in Victoria, you can split the water bill so that the usage component goes to the tenant and the sewage/drainage/parks component goes to you. I know the water bill setup differs from state to state.

    With the council rates, they should automatically go into your name after settlement (a few months after). The rates should be paid up to the financial year. They will mail you a letter, but I have called up in the past just to make sure. :)
     
  3. tattoo

    tattoo Well-Known Member

    Joined:
    20th Sep, 2017
    Posts:
    123
    Location:
    NSW
    Thanks RayTracer, my IP is in Victoria so this is very helpful

    for electricity/gas- is there a way I can make sure the vendor did disconnect ? I want to avoid messy situation where they didn't do it and there is a slight gap in getting renter in and then vendor's supplier sends a bill for that period... - though I guess technically there is no usage so should have no costs for that time.

    With the water bill - is it a simple case of calling up the water authority (Yarra Valley) and telling them to split and where to the respective bills (eg. one to renter, one to my PM)?
     
  4. JacM

    JacM VIC Buyer's Agent - Melbourne, Geelong, Ballarat Business Member

    Joined:
    12th Jul, 2015
    Posts:
    2,194
    Location:
    Melbourne, Australia
    Hi @tattoo

    It is not your concern if the departing tenant or vendor forget to disconnect their utilities. The utility provider will invoice the tenant/vendor but not you. They cannot extract payment from you.

    Your property manager should notify the water authority of an incoming tenant. The water authority will invoice the tenant directly for water consumption. You will receive the invoice for the service charges (for the rights to have your property connected to the town water, sewage and stormwater facilities). You should always check your water bills and if you have been invoiced for water the tenant should be paying, alert your property manager. You will only be invoiced for water consumption when there is no tenant and water was used (eg in a renovation). If the dwelling does not have its own water meter, the tenant doesn't pay the water consumption - the landlord does.

    Hope this helps.
     
    Lil Skater and Stoffo like this.
  5. tattoo

    tattoo Well-Known Member

    Joined:
    20th Sep, 2017
    Posts:
    123
    Location:
    NSW
    Thanks this makes it clearer ! Looks like I need to talk to my PM. On the management contract, they had a bit saying its my responsibility to make sure utilities and such is disconnected and the split billing in water.
     
    JacM likes this.
  6. TheRayTracer

    TheRayTracer Well-Known Member

    Joined:
    21st Jun, 2015
    Posts:
    190
    Location:
    Melbourne
    I normally give Yarra Valley Water a call and they can do it over the phone - split the usage and drainage/parks. I have always found it easier to do it myself and on time.
     
    tattoo likes this.
  7. JacM

    JacM VIC Buyer's Agent - Melbourne, Geelong, Ballarat Business Member

    Joined:
    12th Jul, 2015
    Posts:
    2,194
    Location:
    Melbourne, Australia
    You cannot disconnect electricity and power on someone else's account . It is probably a standard sentence they put in to cover cases where you were living in the house yourself and are converting it to a rental.

    Disappointing the PM won't notify the water authority of the incoming tenant - it's standard practice amongst PMs I use.
     
  8. Tom Rivera

    Tom Rivera Property Manager Business Member

    Joined:
    1st Jul, 2015
    Posts:
    2,718
    Location:
    South East Queensland
    Lil Skater likes this.
  9. Marg4000

    Marg4000 Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    6,380
    Location:
    Qld
    Always check to make sure you are receiving the correct bills after buying any property.

    Once we noticed that we had not received any rates bill after quite a few months (not sure of the billing cycle). Contacted the local council and found that they had not been notified of change of ownership. Corrected their records, told us billing was annual.

    Contacted solicitor who handled the purchase, discovered he had notified the wrong council!!
    Marg
     
  10. Lil Skater

    Lil Skater Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    1,109
    Location:
    Melbourne
    Your solicitor should notify the council, water authority and OC if relevant of your postal address as the new owner. Don’t worry about anything else.

    The agent should be notifying water authority of a new tenant moving in. YVW will want tenants details to change the billing, often you wouldn’t receive their email, contact number, date of birth etc. to enable you to do this.
     

Buy Property Interstate WITHOUT Dropping $15k On Buyers Agents Each Time! Helping People Achieve PASSIVE INCOME Using Our Unique Data-Driven System, So You Can Confidently Buy Top 5% Growth & Cashflow Property, Anywhere In Australia