All of my homes in the MHC are POH and have electric provided to each unit by electric company. We offer tenant to turn on power in their name with direct billing or we pay deposit, connection fee and receive bill for electric from utility company. Since each lot is direct billed by the electric company can I charge an average rate of normal billing with fee for managing the bills and deposits? Essentially we charge 150 a month towards electric. If they go over that 150 we charge the difference. If less there is no adjustment. We also charge a convenience fee per month since we have to manually sort through 60 paper bills and determine which goes to each unit and we put up the deposit on the account. Is this acceptable since it does not fall under master or sub-metering?
Why are you not making the tenants pay the electric company direct? It seems to me like you are making way to much work for yourself. Are you trying to make this a profit center for the park or a convenience for the tenants? By adding surcharges and minimum bill amounts you will get yourself in a lot of trouble with the utility commision.
It is a mess of paperwork! Our issue is that we provide a lot housing to people that cannot get utilities in their name, very unique target tenant with an industrial plant nearby that brings in foreign workers. I am not trying to make utilities a profit center just make them break even. The convenience fee covers pay for staff involved in keeping utility billing correct and reduces the MHC liability of tenant walk outs when we put out deposit and get stuck with unpaid bill from tenant that we cannot locate to collect outstanding due. It has just come to our attention on all the legislature. Never realized so much law and rule behind the hole we dug. So trying to get compliant with regulations but not incur loss.
You’d be better off uplifting your rent to cover the overhead of the electric and charging actuals only. The Texas PUC does not allow for making a profit when sub metering,
Thank you for the responses. I think I will just set a flat rent with utilities and without utilities. Maybe I can push tenants towards just turning on electric themselves. Very much appreciate your time to answer!
There are 2 solutions to your issue that we can help with.
- Simply put all the meters in the Company name account and receive one itemized billing per month showing each meters usage and cost. Any cost over $150 you bill the tenant.
- And/or, In addition to #1 above, add a Continuing Service Agreement (CSA) this allows all the meters to be in the company name, BUT, when a new tenant moves in, they get power from whatever provider they choose. When a tenant moves out the power remains on and reverts to the Companies name. This allows for power to always remain on in the unit.
An added bonus we can also provide is called a Marketing Agreement. When a tenant moves in, if they choose the electric provider we put your company with ( you convince them), then you receive a referral fee of $50.
Hope this helps.
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855-taxempt
There are very specific laws regarding electric and water sub-metering in Texas. You need to go online and do some research and follow them exactly or just get your residents to pay directly to utility company…which is the best way in my opinion because I was told by my utility company that the meter owner is responsible no matter who does the tampering.