Separate Water Meters an Ideal Solution for Tenants

Robert S. Griswold | Steven R. Kellman | Ted Smith
28-November-1999 Sunday

This column on issues confronting renters and landlords is written by Counselor of Real Estate and Certified Property Manager Robert Griswold, host of Real Estate Today! with Robert Griswold (10 a.m. Saturdays on AM1130 - KSDO radio, or on the Internet at www.retodayradio.com), and by attorneys Steven R. Kellman, director of the Tenants' Legal Center, and Ted Smith, principal in a law firm representing landlords.

Q: I own three rental houses on a lot. There is only one water meter for
all the houses. Would I have to have individual meters in order to have the
tenants pay their own water bills?

A: Griswold: As mentioned in last week's Homes section cover story, this is
a problem that's affecting more and more renters and landlords.

Ideally, it would be best to have individual meters but it is not legally
required. You do not necessarily have to have separate water meters to
recover your costs for the water from your three tenants, however it would
sure make things more straightforward and equitable.

Currently, there are no laws that prevent you from developing any
reasonable allocation of the water and sewer bill with the charge being
passed on to your tenants. However, there are some tenants groups that see
this as an area fraught with abuse by greedy or unscrupulous landlords.

Of course, asking tenants to suddenly pay for their own water usage cannot
be done during their lease and can be done only upon proper legal notice if
they are on a month-to-month rental agreement.

There are several ways to do this. For example, you could charge them a
flat fee each month for water (really just a rent increase) or if the
houses are different sizes you could send them a copy of the water bill and
have them reimburse you for their predetermined share.

I believe that no matter what formula you devise for allocating your
current water bill (based on the single meter), you will always run the
risk of improperly charging your tenants since you do not know the exact
usage of each tenant and the exact usage for common area irrigation.

To solve this problem and gain some other significant benefits, you should
consider in-line water meters, which are becoming commercially available at
a reasonable price. These small supplemental water meters are installed
where the water supply line enters each rental unit and can be read each
month to accurately record the actual usage of each individual rental unit.
Companies can either bill your tenants directly or you could still get a
single water and sewer bill but you can then accurately allocate the charge
back to each tenant.

Currently your tenants have no motivation to save water as the water is
included in their rent and some people may even feel that they "want to get
their money's worth" and not exercise due care with water usage. As water
and sewer rates continue to rise, this is one area where the direct payment
by the tenant will most likely result in water conservation and an overall
cost reduction.

While not likely to be well received by your tenants initially, they can
actually control their overall costs of renting by being charged only for
their own actual water and sewer usage directly. I would recommend that you
reduce their rent by an amount equal to what you are currently paying for
the water and sewer charges.

For example, if your current water/sewer bill for the three rental homes is
$75 per month, install the three separate in-line water meters at your
one-time expense.

Then reduce their monthly rent by the $25 per rental home and require your
three tenants to pay the "water utility billing company" directly or
reimburse you for their proportionate share of the cost. This way, you will
not be stuck with excessive water/sewer charges and they will be able to
control their costs directly.

Q: I rent an apartment on a busy street and my front door is less than 20
feet from the sidewalk. I am concerned since my entry door has a doorknob
that doesn't lock. I do have a deadbolt, but I believe that an intruder
might think that my home is an easy target.

Also, my sliding glass door does not have a very good lock and I have used
large sticks in the track to make it more secure. I have requested a
locking doorknob and a better lock on the slider, but the owner says that
it is not legally required. What are my rights?

A: Kellman: You are entitled to adequate locking systems on your doors and
windows. As of July 1, 1998, Landlords must improve certain locks on doors
and windows upon notice to them of a potential need for the modification.
You are entitled to a proper deadbolt installed on your front door which
you apparently already have.

The law, however, does not specifically mandate the installation of a
locking doorknob when you have a secure deadbolt. This makes some sense
because the deadbolt is the device meant to provide security and not the
locking doorknob. With a visible deadbolt, your door should not look like
an easy target for lack of a lock.

The new law does not require the installation of special locking devices on
sliding glass doors. Regardless of this omission, I believe that you are
still protected under general existing law for those sliding glass doors.

Generally, a landlord must properly maintain the rental unit in a safe and
habitable condition. The unit must also be maintained so as to avoid
foreseeable harm or damages which may be suffered by the tenant. This means
fixing dangerous conditions like gas leaks, excessive mold and mildew,
faulty electrical wiring, etc.

The lack of an effective lock on an exterior sliding glass door can easily
result in a foreseeable harm to the tenant in the form of a robbery or an
assault. (This is especially true in neighborhoods where the risk of such
crimes is known to the landlord.)

As such, I feel that the law places responsibility on the landlord to
provide an adequate lock for that sliding door.

Smith: Let's be honest: You liked the apartment when you first moved in,
otherwise you wouldn't have rented. Now you're complaining about the fact
it's only 20 feet from the sidewalk.

I disagree with Steve Kellman. In this case, the landlord has complied with
the law. The one functioning deadbolt is all that is legally required for
the door -- and you agree it works. The bottom lock doesn't matter -- the
working deadbolt satisfies the requirement.

Sliders, my colleague, Mr. Kellman, concedes, are not within the new law.
The landlord is not required to place any lock, board, or other device on
the sliding glass door.

Let me further remind you that a landlord cannot guarantee the personal
safety or security of tenants. Generally speaking, the landlord is not
responsible when a thief breaks and enters an apartment unless there can be
a showing of specific knowledge of prior incidents.

If you feel threatened or unsafe in your rental, you are free to obtain
housing elsewhere, provided you give proper notice. In this case, the
landlord has satisfied his obligations by providing a habitable dwelling.

Q: I am about to purchase some property in a rent control area and the
property requires many repairs. I want to raise the rent more than the
amount allowed by the rent control statute law for the current tenants.
Since I am the new owner, do I have the right to raise the rents?

A: Griswold: Rent control statutes and policies vary widely from one local
jurisdiction to another, thus you need to contact your local rent control
board.

Hopefully, you have already reviewed these documents as I would strongly
caution against buying a rental property subject to rent control without
having a clear understanding of all aspects of the law and full
appreciation of the potential impact on the income, expenses and operations
of the property.

It has been my experience that the typical rent control requirements state
that the rents can only be raised to current market when the tenants
change, not upon a change of the property owner. Thus, if that is how the
rent control laws work for your proposed building, then you cannot raise
the rents beyond the amount allowed for current tenants.

However, there may be limited provisions that allow you to apply for
increases if you can meet certain requirements. Many times rent control
boards will allow a reasonable rent increase as long as the funds are
expended in upgrading the interiors or exteriors of the rental property.

Be careful not to take the advice or input of just anyone as it is critical
that you have a thorough understanding of all rent control ordinances in
writing directly from the appropriate agency before purchasing any property
in a rent control area.

IF YOU'RE A TENANT OR LANDLORD, the authors stand ready to answer your questions in this column, although letters cannot be answered individually. Write them at: Rental Roundtable, Homes Section, San Diego Union-Tribune, P.O. Box 120191, San Diego, CA, 92112-0191. Or you may e-mail them at rgriswold.sdut@retodayradio.com

Copyright Union-Tribune Publishing Co.

Back to 1999 Rental Roundtable Index

Robert Griswold and the Real Estate Today! radio show strongly support the intent and the letter of all federal and state fair housing laws. As a reminder to all owners and managers of real estate, note that all real estate advertised is subject to the Federal Fair Housing Act, which makes it illegal to advertise "any preference, limitation, discrimination because of race, color, national origin or ancestry, religion, sex, physical disability, or familial status, or intention to make any such preference, limitation or discrimination." Additional state and/or local fair housing laws may also apply. Be sure to inform all persons that all dwellings offered or advertised are on an equal opportunity basis.

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Revised and Updated - Wednesday, April 26, 2006

Robert S. Griswold, CRE, CPM, CCIM, PCAM, GRI, ARM
Griswold Corporate Center
Griswold Real Estate Management, Inc.
5703 Oberlin Drive, Suite 300
San Diego, CA 92121-1743
Phone: (858) 597-6100
Fax: (858) 597-6161
Email: rgriswold.ret@retodayradio.com