According to our lease agreement, tenant has the responsibility to transfer all utilities in their names upon move in. Tenant pleaded that I leave the utility in my name and he would pay me monthly. He has done so for the past several months. He is consistently late on his rent (still has not paid for Jan) and I am not very pleased with the situation. Would it be legal for me to notify him by letter that he needs to follow the lease agreement and transfer the utility to his name as soon as possible and give him a cut-off date for services in my name? I am supposed to be meeting with him today to pick up January's rent. If he is late in February (couple of weeks from now) I am going to evict him and I do not want to be stuck with a huge bill.

This is always shaky ground, unfortunately. Your local judge could very easily see you turning off the power to be a self-help/illegal eviction. Even though, yes, we all know that it should be in their name.

Many LLs here will say that you HAVE to have them change it to their name before they take possession -- but, in my experience, that is often really difficult to make happen. So, I admit that it almost never goes that way for me.

Did you screen this person? Run their credit report? My guess is that they must have some big outstanding debt to the local utility company -- which is why they had to beg you to leave it in your name.

Basically, your best bet is to carry out the eviction and get them out. Then worry about trying to collect any utility bills that they owe you afterwards. Better to get someone else in there that has been properly screened and pays -- and THEN worry about the last guy, IMO.

Do they have a job? If so, then you should be able to collect whatever debt builds up in the meantime. Sue them in small claims if there is not enough to cover what they owe you after you handle move-out and security deposit. Then garnish if necessary to collect it.

- John...

You've lost control of your investment by allowing this tenant to flout your lease, pay late constantly, and talk you out of following sensible business procedures. Send notice to cure or quit and pay or quit if required by your state, or if not, file eviction today.

Someone taking a tenant knowing full well that they have shaky credit and complaining a few months later that this lack of money is causing all sorts of problems is a common theme here.