Minimize Risk from Tenants’ Unpaid Utilities
Lien rights.
Public utilities in Washington have lien rights against property for unpaid utilities. RCW 35.21.290 (water, electric), 35.67.200 (sewer), 36.36.045 (fees imposed for the withdrawal of subterranean water or on-site sewage disposal), 36.94.150 (connection charges). Private utilities do not have lien rights.
That is why escrow agents at the closing of a real property transaction pro-rate the public utilities that have lien rights, but not private utilities that lack lien rights. It is also one reason landlords often are stuck with utility bills even though they are in the tenant’s name.
Water and electric liens are limited to four months’ charges. There are no similar limits for the other liens. The statutes provide for certain late fees and interest.
Note that some private companies act as billing services for public utilities. AUM is an example. While strictly speaking, AUM may not have lien rights, the public utility for which they process billing does.
In addition, local ordinances affect landlords’ liability for utility charges. In Seattle, for instance, a landlord may escape liability for a tenant’s Seattle City Light charges by giving required notice ten days prior to both the start date and end date of the tenant’s occupancy. SMC 21.49.100B,C.
A savvy landlord will monitor utilities closely.
Request Copies of Billing.
The utility lien may be waived if the landlord requests copies of utility bills be sent to the landlord as well as the tenant and they are not provided. RCW 35.21.217.
Utility Shut-off as Code Violation.
If a landlord shuts off utilities this is self-help eviction and illegal. If the tenant is responsible for utilities under the terms of a lease and utility service is discontinued because of non-payment most courts will not hold this is a defense for the tenant in an eviction.
Nevertheless, the tenant may complain to local government for code violation. Local government will often not concern itself with the terms of the lease. The inquiry is simply whether the property is in compliance with the building codes and who owns the property.
The Seattle Municipal Code specifies that intent is not relevant. SMC 22.206.270(C). Also, in Seattle Emergency Orders may lead to the landlord being responsible for relocation expenses. SMC 22.206.265.
Care in completing the lease.
An ambiguity in a contract is construed against the party who drafted or chose the language. A landlord should be very careful in drafting a lease or completing a form lease and avoid double negatives or unclear terms.
For example:
Tenant is responsible for all utilities except
all utilities
Landlords will sometimes be left holding the bag when tenants fail to pay utilities but savvy landlords can minimize their exposure.

