Whenever a new tenant moves into your rental property, there are many things to check off your to-do list. One commonly overlooked but essential step is ensuring the electric bill gets transferred into the tenant’s name at the right time. If this doesn’t happen immediately, you could be left with unexpected bills or service interruptions that create a poor move-in experience for your new tenants.
In this guide, we’ll walk you through how to transfer an electric bill to a new tenant. Whether you’re a first-time landlord or a seasoned property manager, having a reliable process will help you stay organized and set clear expectations with your tenants from day one.
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Why does transferring the electric bill matter?
Transferring the electric bill might not be the most exciting part of renting out a property, but it’s one of those things that can save you a lot of trouble. We’ve seen situations where landlords forget to make the switch, and a month later, they’re stuck paying a tenant’s electricity bill, or worse, the power gets shut off because no one took ownership. It’s a simple step, but an important one. Getting the bill into the tenant’s name immediately clarifies who is responsible and helps avoid mix-ups, missed payments, or service interruptions. In short, transferring the electric bill to a new tenant is just one of those small details that make the move-in process smoother for everybody.
Who should be responsible for the electric bill?
In most rental situations, the tenant is responsible for setting up and paying the electric bill. This is standard practice in residential property management, especially for single-family homes or units with separate meters. This arrangement can work well when it’s not feasible to separate usage between units, but it also means you’re on the hook if electricity use suddenly increases.
The lease should outline who is responsible for the electric bill and who is in charge of setting up and paying for utilities. Keep in mind that local laws can also influence this. Some cities require landlords to keep essential utilities active or include certain disclosures in the lease agreement.
Here’s a good rule: if you expect the tenant to handle the electric bill, make that clear in writing when you hand them the lease. Make sure the tenant knows which utility companies to contact and by when. Clarity upfront goes a long way in preventing issues later.
Step-by-Step: How to transfer the electric bill to a new tenant
1. Confirm the lease terms first
First, double-check the terms of your lease to confirm your responsibilities as a landlord and your tenant’s responsibilities. Did you agree on who is responsible for the electric bill? Check your deadlines. For instance, should you transfer the electric bill before, on, or after the move-in day? If the lease terms are vague, this can be a good opportunity to update them for future tenants.
2. Call or notify the utility company yourself
Reach out to your electric utility provider and inform them there’s a change in occupancy. Calling is usually fastest, but depending on your provider, you may do this through an online portal or email. Your provider may ask for:
- Address of property being serviced
- The move-out date of the previous tenant
- The name and contact information of the incoming tenant
- The date when the new account is effective
3. Schedule the switch
Ideally, you would have the new tenant schedule their account activation for their move-in date or when their lease begins. In some cases, you may have a gap between tenants. If that’s the case, we recommend you keep the account active in your name temporarily to prevent any shutoffs. Keeping the account and services up and running will be helpful for cleaners or anyone needing repairs and maintenance before the new tenants move in.
4. Get a final meter reading
On the last day of the outgoing tenant’s lease, ask the utility company to do a final reading. This ensures the old tenant isn’t charged for someone else’s usage. Likewise, getting a final reading will ensure you don’t end up with any unexpected charges. Although some providers allow tenants to self-report readings, we recommend getting a verified reading just in case.
5. Help your new tenant set up service immediately
This one is optional. Although technically it is not your responsibility, you can guide the new tenant through setting up their service. This can be as easy as providing them with the company’s name, contact information, and account setup instructions. Some landlords might include this in a welcome packet or move-in checklist. While this is not your responsibility, we highly recommend you do it. If the bill remains in your name and the tenant fails to make the switch, you might incur charges billed to you.
Common mistakes to avoid
Even though transferring the electric bill seems straightforward, small missteps can cause issues. Here are the most common mistakes that landlords and property managers make when transferring the electric bill to new tenants.
- Don’t assume the new tenant will handle the bill transfer automatically. Some tenants might delay the process without clear instructions or a set deadline. This might not be done on purpose, though. It’s very easy to forget after a big move.
- Don’t forget to coordinate the switch correctly. If there’s an overlapping or missing bill period, you could pay for electricity you didn’t use. This might even lead to a gap in service! To avoid this, make sure the utility company has a precise cutoff date for the old tenant and a start date for the new one.
- Don’t forget to document the final meter reading. This one is easily overlooked. Nonetheless, without an official reading, you could be responsible for charges that should belong to the new tenant, not you.
- Don’t fail to keep clean records. Whether it’s an email, screenshot, or written confirmation from your tenants or the utility company, always keep a record! This will help protect you in case of any disputes.
- Don’t keep the bill in your name for too long. Mark your calendar! If there is a gap between tenants, it is up to you to ensure the new tenant handles the bill transfer. Otherwise, you risk being responsible for late payments, usage, or service shutoffs.
Pro tips for landlords and property managers
Knowing how to transfer an electric bill to a new tenant is a part of effective property management. To take things a step further, here are a few tips that can save you time, reduce stress, and help you stay organized during tenant transitions.
- Create a utility transfer checklist. Include utility transfers in your move-in and move-out checklists with confirmed transfer dates and set up reminders for your tenants. For more ideas on how to make this checklist, check out our Tenant Move-In/Move-Out Checklist for Landlords!
- Include utility instructions in the lease and welcome packet for your tenants. Ensure tenants are responsible for setting up electricity in their name and by what date. In an onboarding packet or email, you can include (1) the name of the utility provider and phone number, (2) links to the online account setup, and (3) a list of all utilities the tenant is responsible for.
- If you manage multiple properties, use management software. Software tools can help you track lease dates and utility switchovers and document your communication with tenants. Some platforms even combine utility billing services so that it’s easy to automate reminders.
- Keep a utility in your name as backup. In some cases, you will want to set up a “landlord account” or “vacancy setting” with your electric provider. This will help you prevent shut-offs between tenants or if your tenants cancel their lease at the last minute. Doing this can also prevent you from having to pay reconnection fees.
How Good Life Property Management can help
We understand that small details, like how to transfer an electric bill to a new tenant, can significantly impact your rental experience. Utility transfers may seem minor, but can lead to billing issues, unhappy tenants, or even service interruptions.
Good Life Property Management takes a proactive approach during every tenant turnover. For landlords who prefer a hands-off or streamlined approach, we offer full-service property management that covers everything from marketing and leasing to maintenance and tenant support.
Frequently asked questions about transferring the electric bill to tenants
1. Are landlords responsible for transferring utilities into the tenant’s name?
Not usually. In most rental agreements, tenants are responsible for setting up and paying for their own utilities, including electricity. However, it’s up to the landlord to ensure this is clearly stated in the lease and communicated before move-in.
2. What happens if the tenant doesn’t transfer the electric bill right away?
If the tenant fails to set up service in their name, the bill may stay in the landlord’s name—and that means you could end up paying for their usage or face service interruptions. Avoid this by setting a firm deadline and confirming the transfer with the tenant or utility provider.
3. Should landlords keep electricity on between tenants?
Yes. Keeping the electric account active during vacancy periods ensures the property stays safe, clean, and ready for showings or repairs. Most utility companies offer landlord agreements or “revert to owner” programs to make this easier.
4. Can landlords charge tenants for electricity if the bill is in the landlord’s name?
Only if it’s allowed by local law and spelled out in the lease. In multi-unit properties where utilities aren’t separately metered, you may need to follow specific regulations for billing tenants (like RUBS or submetering). Always check your state and local rules first.
5. When should tenants set up electricity service before moving in?
Tenants should contact the electric company 3–5 days before their lease starts. This gives enough time for account setup and avoids move-in day delays or power outages.
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Steve Welty
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