The delay in the payment of supply receipts by tenants poses a frequent situation that owners of rental homes must face. This scenario can give rise to disagreements and tensions between the tenant and the owner. In this article, we provide you with guidance on how to proceed when a tenant defaults on their electricity or water supply, as well as exploring some of the possible circumstances that could arise.
Who is responsible for paying for supplies in the leases?
Although there are certain freedoms that may be the subject of an agreement between the landlord and the tenant, article 20 of the Urban Leasing Law (LAU) establishes that "expenses for services with specific metering devices of the leased property will always be borne by the tenant ". In other words, as a general rule, the tenant must pay for services such as electricity, water, gas, among others.
However, the law also allows the parties to agree who bears each expense, as long as it is indicated in the rental agreement. In general, it is customary for the tenant to be in charge of public services, while the landlord is in charge of other expenses such as the Real Estate Tax (IBI) and the community fee.
But, what happens if the owner of the rental apartment is the holder of the service contracts?
Electricity and water in the name of the owner
In this situation, the owner is obligated to pay the supplying company for said services, since he appears as the owner in the contract. In most cases where this occurs, the landlord passes the costs on to the tenant and the latter pays them. However, this dynamic must have been agreed in the lease to be valid.
The tenant does not pay the bills, what steps to follow?
If the tenant does not comply with the payment of the services that he has used, the owner of the property must continue assuming these costs before the supplier company, since it is his responsibility to guarantee payment.
However, the landlord has the option of filing an eviction lawsuit for nonpayment of utilities against the tenant.
In the event that the landlord chooses not to pay these expenses and, consequently, the utility company suspends the service, this could create a problematic situation for him, especially if he has already filed an eviction lawsuit for non-payment or intends to to do so in the near future.
The lessee stops paying for the services in his name
If the lessee is the holder of the supply contract, since he is the one who enjoys the service, the obligation to pay the debt falls on him. In this situation, the supplier company will require the lessee to pay the outstanding invoices, even going so far as to suspend the service and take legal measures if necessary.
At this juncture, the tenant must face all the consequences and could not attribute to the owner the responsibility of not having, for example, electricity or water, or that the house has ceased to be habitable, since this is directly his responsibility. It is he who decides whether or not he wants to have the services, and he fully assumes this decision.
The lessee stops paying for the services in his name
If the lessee is the holder of the supply contract, since he is the one who enjoys the service, the obligation to pay the debt falls on him. In this situation, the supplier company will require the lessee to pay the outstanding invoices, even going so far as to suspend the service and take legal measures if necessary.
At this juncture, the tenant must face all the consequences and could not attribute to the owner the responsibility of not having, for example, electricity or water, or that the house has ceased to be habitable, since this is directly his responsibility. It is he who decides whether or not he wants to have the services, and he fully assumes this decision.
How to act if a tenant leaves outstanding debts?
When the tenant leaves without paying the debts, the supply or service company will try to resolve the situation directly with him. However, what happens if supplies are cut off? The owner will not be able to rent the house again if the services are not restored.
In case of suspension of supplies, the homeowner has the following options:
- Pay off the debt (allowing you to rent the apartment again) and then file a legal claim against the tenant.
- Restore the electricity supply with the same company, assuming the associated costs.
- Hire the service in his name through another supplier company.
Therefore, if the tenant is leaving debts with the supply companies, the landlord has the possibility of resorting to the courts to claim the debt. To do this, he may present as evidence the lease, the unpaid invoices and any other proof that supports the existence of said debt.
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