I had a tenant move out of a SFH at the beginning of this month. They must have had their propane set up on auto fill. There was a bill hanging on the door today made out to the tenant.

How should I handle this? Deduct from security? call gas company? Call tenant?

I called the gas company and they told me to give the bill to the new tenant. I said NO WAY.

I'm absolutely not going to sign a lease with a new tenants and then say "Oh by the way, here's a bill for gas you didn't order."

The gas company is saying they would pull the regulator or the tanks until its paid.

I told them that this is on the old tenant. He was on auto fill and didn't call to cancel.

Worse comes to worst, I'm think I will hit his deposit for it because it is an unpaid bill as a result of his tenancy. I'm just not sure how that would hold up in court.

Reason being, is because the gas is still in the tank. Old tenant isn't using it.

Condundrum of sorts.

Reminds me of my very first post here. I called it "Tough seller, heat issue."

No way am I dumping the bill on the new tenant. Although it may be right, it just looks really bad.

I changed my policy a few years ago to say the tenant had to leave with the oil tank full. It works well.

tell company to come remove tanks

Tell tenant that can arrange with any company they want for fuel. tell them what the annual usage is and to shop around for best price for either pre paid or payment plan

Here it is customary to pay the seller for the fuel (oil, gas) in the tanks when you buy. So, I would think the same applies here. The old tenant gets paid for the propane left, the new tenant pays for the propane in the tank. However, I have always found it easiest to rent with a full tank, and leave with a full tank. That way they know exactly how much they used. How much was in the tank when the old tenant came? Are you actually getting some of the propane they paid for?

With oil it is just calling a company for the oil, propane requires a tank from the company and then you are sort of bound to that company for a while. So your choices are 1. eat this cost and have the new tenant fill when they leave (or charge security for this if they don't) 2. pay bill bill and have tenant reimburse you for it at a later date 3. have company remove tank and let the tenant find a new supplier with a contract and payments they can live with (we have prebuys, ceiling prices, and even payment plans available).

How much was in the tanks when the old tenants moved in?

Pulling the tanks whether oil or propane isn't a possibility or practical for that matter. The ex tenant is at or just above his required level. No issue there. The issue is that he didn't cancel his auto fill.

Full at move in to full at move out assumes the departing res will have

-be current on the rent, not an eviction

AND

-have enough $$$ available to fill the tank

The res has to pay somebody for heat and I don't want them to run out and freeze my pipes.

I lean toward letting them shut it off. When the new res needs fuel (day one) they can pay the fuel co, perhaps with a monthly plan or credit card.

My Bible Study Fellowship teaching partner is "Hank Hill", a propane delivery man. HE gets the late night runs and makes emergency deliveries in the snow. He suggests the LL fill the tank and charge the res a monthly fee based on usage history, perhaps weighting the monthly fee based on temperature/usage like the natural gas lines. His company tracks those figures.

Our elec and gas utils will set up BUDGET BILLING - they take last year's usage and divide by 12. Any difference is made up on the 12th month.

BRAD

Wouldn't it be simpler to just pay the propane yourself and charge the tenant for it?

Heat is typically a set cost, say $3k a year. Tell the tenant you do it as a favor to them so they are not hit with massive bills from November to March.

Our local gas company does this if you want, its not my idea. Every year they just update your monthly bill based on last years usage.