When I close my electric and water accounts do they bother cutting off the supply?

[advancebooking]

We rented out our building and the tenants asked that we dont close our electric and water accounts. They said that they want to form a company and maybe put the accounts in the company name. But they need the electric and water supply to do renovations on the site in the meantime. 

 

I was thinking that both companies do not actually stop the respective supply of electric and water. Is this correct. I think they just keep it running and assume that meter readings will be taken by both parties. 

 

Am I correct in assuming this? I prefer to close the accounts now

thanks

[Pilotman]

of course close them, its a no brainier,.  They won't normally shut off the supply, but the accounts will no longer be active. You are being way too trusting. 

[soi3eddie]

 

Definitely close the accounts. Electric will almost certainly be disconnected but water probably not. MEA in Bangkok are very strict with non payment and cut off within 14 days of non payment (PEA probably same too). I can't imagine they would keep a meter connected without there being an account holder. If you do not inform of change then you'll be liable for all bills.

 

[Catkiwi]

We own 2 shop houses and have had them rented out to several different tenants over the years. We have never closed either the water or electric accounts. The bills are sent to the physical address and the tenants pay them. If they don't pay the water bill on time the local water authority comes and takes the meter out. There is a fee of course for having a new meter installed. If they don't pay the electric the local electric authority disconnects the electric. There is a fee of course for having that reconnected. So, there is no risk of you being saddled with huge unpaid bills and there is no hassle for either yourself or your tenants changing accounts when they move in or back out again. You could also write something into the lease agreement that mentions any outstanding charges at the time they vacate the agreement will be deducted from their bond. That would cover any reconnection fees, if required. 

[Pilotman]

2 minutes ago, Catkiwi said:

We own 2 shop houses and have had them rented out to several different tenants over the years. We have never closed either the water or electric accounts. The bills are sent to the physical address and the tenants pay them. If they don't pay the water bill on time the local water authority comes and takes the meter out. There is a fee of course for having a new meter installed. If they don't pay the electric the local electric authority disconnects the electric. There is a fee of course for having that reconnected. So, there is no risk of you being saddled with huge unpaid bills and there is no hassle for either yourself or your tenants changing accounts when they move in or back out again. You could also write something into the lease agreement that mentions any outstanding charges at the time they vacate the agreement will be deducted from their bond. That would cover any reconnection fees, if required. 

your last sentence is correct, the rest is risky. The OP has stated that this is not a private tenant to owner arrangement, but a company to company deal, totally different in terms of risk profile. 

[Catkiwi]

9 minutes ago, Pilotman said:

your last sentence is correct, the rest is risky. The OP has stated that this is not a private tenant to owner arrangement, but a company to company deal, totally different in terms of risk profile. 

He is renting to someone who wants to form a company. The "both companies" that he refers to are the electric and water supply companies, if I read that correctly. If the lease agreement is water tight (pun intended) and the bond is sufficient, I still don't see a huge risk. However, each to their own.

Edited February 2, 2021 by Catkiwi
spelling

[Pilotman]

Just now, Catkiwi said:

He is renting to someone who wants to form a company. The "both companies" that he refers to are the electric and water supply companies, if I read that correctly. If the lease agreement is water tight (pun intended) and the bond is sufficient, I still don't see a huge risk. However, each to there own.

okay, misread that, but personally,  I would still close them.  It no big deal, until it is. 

[advancebooking]

1 hour ago, Catkiwi said:

He is renting to someone who wants to form a company. The "both companies" that he refers to are the electric and water supply companies, if I read that correctly. If the lease agreement is water tight (pun intended) and the bond is sufficient, I still don't see a huge risk. However, each to their own.

I appreciate all the comments but no one has actually answered my question. If I pay the final bill and close the accounts...... will the supply still be there or not for both elec and water?

[thedemon]

2 hours ago, advancebooking said:

I appreciate all the comments but no one has actually answered my question. If I pay the final bill and close the accounts...... will the supply still be there or not for both elec and water?

 

Sorry I can't answer your question either but I think the reason you're not getting an answer is because it isn't normal practice in Thailand for the utility accounts to be in a tenant's name.

 

As far as I know, to setup accounts and have water and electricity connected requires presentation of the property's Tabien Baan. So the landlord will have the ultimate responsibility for unpaid bills anyway no matter who's name the account is under. If the bills remain unpaid, power and water won't be reconnected to that property.

 

Another point, that I might be wrong about, is I think electricity is charged at a higher rate when the account is in a company name. What I am sure about is that the revenue department does accept utility bills in the landlord's name as a legitimate tax deduction for a tenant company. So it's a bit strange that your new tenants are requesting this.

[advancebooking]

1 hour ago, thedemon said:

 

Sorry I can't answer your question either but I think the reason you're not getting an answer is because it isn't normal practice in Thailand for the utility accounts to be in a tenant's name.

 

As far as I know, to setup accounts and have water and electricity connected requires presentation of the property's Tabien Baan. So the landlord will have the ultimate responsibility for unpaid bills anyway no matter who's name the account is under. If the bills remain unpaid, power and water won't be reconnected to that property.

 

Another point, that I might be wrong about, is I think electricity is charged at a higher rate when the account is in a company name. What I am sure about is that the revenue department does accept utility bills in the landlord's name as a legitimate tax deduction for a tenant company. So it's a bit strange that your new tenants are requesting this.

We rented a building a few yrs ago in another location and put it in our name. I think its normal and very common to have utility accounts in a tenants name. 

[ThaidDown]

3 hours ago, advancebooking said:

I appreciate all the comments but no one has actually answered my question. If I pay the final bill and close the accounts...... will the supply still be there or not for both elec and water?

To answer your specific point... if you close the account and pay the final bill the M/PEA and M/MWA will then remove the meters.  A new supply must then be requested and paperwork agreeing to pay the bills must be signed.

 

As said by thedemon owners tabien baan will be required together with tenants company paperwork.

Whether it is possible to transfer the account on a certain date to the tenant, all parties showing the relevant paperwork I do not know. An initial visit to your local Electric and water supply offices  to ask the procedures would be the first best step.

 

For many years wife has rented and rented out shops and houses and the utilities have always remained with the owner, as others have said. Part of the deposit being used to cover any non payment.

 

As others have also indicated the electric offices are very quick to cut off supplies in the event of non payment and the water is only a few weeks behind.

[Catkiwi]

On 2/2/2021 at 3:17 PM, advancebooking said:

I appreciate all the comments but no one has actually answered my question. If I pay the final bill and close the accounts...... will the supply still be there or not for both elec and water?

I doubt it but best get in touch with your local service providers to get their procedures.

[KKr]

On 2/2/2021 at 3:17 PM, advancebooking said:

I appreciate all the comments but no one has actually answered my question. If I pay the final bill and close the accounts...... will the supply still be there or not for both elec and water?

in my experience, PEA will take the meter out.
Water supply may be different.

[Bob12345]

They come pick up the meters, you get your deposit back, and when the new renter wants water and electricity he will need contracts to sign, pay deposits, and pay for installation. Its a lot of hassle and possible a couple of days waiting time for installation. Installation costs might be around 10K (i believe thats what they charge you extra when the meter is taken away).

[The Theory]

While Covid is around electric company will not cut the power even for months (it happened to a friend in BKK, tenant did not pay for electric and rent, 3 shops for 4 months) Be advised if your tenant does not pay for the bills, no power will be cut by electric company.
You figure. 

Edited February 5, 2021 by The Theory