Can Landlords Lawfully Remove Tenants for High Utility Usage?

Are you considering including utilities in the rent when managing your properties as a homeowner? It’s a positive aspect for both you and your tenants. You will get higher rental revenue and reduce landlord-tenant utility disputes, although your taxes will increase.

This isn’t a drawback, even though it appears that way. When you pay the utilities yourself as a landlord, you can write it off as a tax deduction. However, there are disadvantages to it that can lead to issues between tenants and their landlords. As a landlord, you should resolve the issues without breaking the law.

Someone posted an online video of a landlord instructing his tenant to reduce water and electricity usage. The video has gone viral and caused a debate on whether the landlord is wrong. This led to the popular interpretive lawyer Ugo Lord intervening to explain who was at fault.

So What Happened in the Landlord Tenant Utility Disputes Case?

In the video, the landlord talks to his tenant over the phone about his water and electricity usage. The landlord insists the tenant address excessive utility use. Financial constraints prompted the concern. 

The tenant told the landlord that it was not his problem. According to the tenant, “This is our agreement, this is our lease so I can’t change it”. The landlord warned of a rent increase. If the tenant couldn’t pay, eviction would follow.

Is it legal for the landlord to increase rent? Can the landlord legally evict the tenant?

What Is the Legal View of the Landlord Tenant Utility Disputes Case?

According to interpretive and famous lawyer Ugo Lord, anytime a landlord includes utilities in the rent, they have already calculated the cost of those utilities and are adding them into the rental price to make it convenient for the tenant to pay one bill every month. 

If the tenant uses more utilities than anticipated when the landlord sets the rental price, the landlord has no recourse. That’s what happens when you build in a price, and so the landlord cannot increase the rent until the lease is over.

This means the landlord cannot terminate the tenant’s lease without violating their contract.

California Law on Rental Agreements

When a rental agreement includes utilities. It typically incorporates essential services at a flat rate in the monthly rent. The exact utilities covered and how this impacts rental pricing can vary significantly based on location and the discretion of individual landlords.

“Utilities included” arrangements typically include the following:

1. Electricity and gas: Often the most significant utility, powering lighting, appliances, and devices. Landlords often consider these essential utility costs and may include them in the flat fee.

2. Water: Includes hot and cold water for bathing, cooking, and cleaning.

3. Heating and air conditioning: Depending on the lease agreement, these may or may not be included, but they’re more commonly included in climates with extreme temperatures.

4. Sewer and trash removal: Sanitation services that maintain the cleanliness and hygiene of the living environment.

Less commonly, some landlords might include cable TV and WiFi, but these are not standard in all utilities-included rent arrangements. Tenants may also come across “all bills paid” arrangements, including utilities plus internet and cable services.

Before signing a rental agreement, tenants should clarify which utilities are included to assess their monthly expenses and avoid unexpected utility costs. A landlord can’t force you to move out before the lease ends unless you fail to pay the rent or violate another significant term, such as repeatedly throwing large and noisy parties. 

In these cases, landlords in California must follow specific procedures to end the tenancy. For example, your landlord must give you three days’ notice to pay the rent or leave (California Civ. Proc. Code § 1161(2)) before filing an eviction lawsuit. 

If you have engaged in any illegal activity on the premises, your landlord may give you an unconditional quit notice, giving you three days to move out. (Cal. Civ. Proc. Code §1161(4)).

Can Landlords Restrict the Flow of Water and Other Utilities From Tenants?

Landlords are typically unable to limit the amount of water or other utilities that renters use. However, in certain circumstances, landlords may be permitted to request that tenants use less water.

For example, if a severe drought affects the overall supply of water in a state, the governor may issue an official proclamation to curtail water use. In this scenario, property managers and landlords will be responsible for informing tenants of these new limitations and suggesting any necessary adjustments.

The landlord will have to check the amount of utilities each unit uses, if possible. They will also inform each resident that their usage needs to be decreased to comply with state regulations. However, in the absence of such a directive, landlords cannot impose restrictions.

Who Is Charged for Overdue Disputes?

Unpaid utility bills are legally the debt of the person whose name appears on the bills. As a landlord, you would be responsible for paying these costs if your tenants paid you the utilities directly and you handled the bill payment. 

Before you include utilities in rent, you should know that some tenants don’t care to save energy just like the tenant in the video. So you should be careful. If not, you may need to cover the additional cost out of your pocket.

If you are a tenant in a flat with utilities included in bills, your landlord is responsible for the payments no matter how you use them. Therefore, if your landlord increases your rent after you have leased it or threatens to evict you for not paying up, you can sue him or her for breach of contract.