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HOA Fee as a "Utility"

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ZZGAMAZZ

Elite Member
Joined
Jul 23, 2007
Professional Status
Certified Residential Appraiser
State
California
A guy I know is renting a Riverside condo. Every month he must write two checks to the owner, one for the rent and the other for utilities.

The lease does not describe "utilities," and the owner is charging about $350/month for the HOA fees in addition to typical utiliy fees, based upon his contention that a tenant who rents a residential property with an HOA is responsible to pay for the HOA fees, as a type of "utility," as a usual & customary matter.

The city Utility department says absolutely not, and I've tried unsuccessfully to obtain actual utility statements.

Im awaiting a response from County Fair Housing, and trying to obtain statements from various property managers that HOA fees are NOT a typical utility fee. He hope to file in small claims court without needing a lawyer.

Does anybody on the AF know of a source that coud be referred to support my contention that the HOA fee is NOT a utility?

Thanks.

Comments/Disclosure: Yea, I'm the tenant; and the owner is my former tax preparer who I recently termed, who also promised me "favorable tax treatment" for the rental as my home office, but that, too, is another story, one that will be told in Superior Court where I've been subpoended to testify in a similar case. Nuff said.
 
The lease should state what you suppose to pay. Sometimes the HOA includes garbage and water into the fee. Your Lease should be much clearer on this issue.
With my properties, I know of cities that chase after property owners for utilities tenants don't pay.
 
The lease should state what you suppose to pay. Sometimes the HOA includes garbage and water into the fee. Your Lease should be much clearer on this issue.
With my properties, I know of cities that chase after property owners for utilities tenants don't pay.
BINGO. Dude is using the fact that the HOA includs garbage & water to justify charging me the entire $300++ monthly fee. That's the missing part of the puzzle. Thanks very much!
 
Um... a dictionary?
 
A guy I know is renting a Riverside condo. Every month he must write two checks to the owner, one for the rent and the other for utilities.

The lease does not describe "utilities," and the owner is charging about $350/month for the HOA fees in addition to typical utiliy fees, based upon his contention that a tenant who rents a residential property with an HOA is responsible to pay for the HOA fees, as a type of "utility," as a usual & customary matter.

The city Utility department says absolutely not, and I've tried unsuccessfully to obtain actual utility statements.

Im awaiting a response from County Fair Housing, and trying to obtain statements from various property managers that HOA fees are NOT a typical utility fee. He hope to file in small claims court without needing a lawyer.

Does anybody on the AF know of a source that coud be referred to support my contention that the HOA fee is NOT a utility?

Thanks.

Comments/Disclosure: Yea, I'm the tenant; and the owner is my former tax preparer who I recently termed, who also promised me "favorable tax treatment" for the rental as my home office, but that, too, is another story, one that will be told in Superior Court where I've been subpoended to testify in a similar case. Nuff said.
Comments/Disclosure: Yea, I'm the tenant; and the owner is my former tax preparer
Comments/Disclosure: Yea, I'm the tenant; and the owner is my former tax preparer
Sounds like he was doing it that way so you could write off utilities on your home office which you agreed to - SO WHATS your problem ? Many HOA include water & sewer in their Condo HOA - So yes it could be considered a utility.
 
BINGO. Dude is using the fact that the HOA includs garbage & water to justify charging me the entire $300++ monthly fee. That's the missing part of the puzzle. Thanks very much!
So move out but $300 in CALI wont cover much :) LOL
 
We rent out an SFR and not a condo. But I would imagine it's all about the lease agreement. Whatever the tenant signed to, that's the agreement within the lease. If that separate "utility" fee is not in the lease agreement.....then that's an issue.
 
With the current arrangement that you pay the "HOA"/Utility fee, it works for the owner. He gets to deduct HOA fees in his taxes and you get to pay the utility fees to him.
My HOA fee is very high over $450/month but it includes earthquake insurance and other reserves. When my HOA fee increases, I let tenant know and increase rent at least over that HOA fee increase. Blame it on HO Association.
 
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