Utility Continuous Service Agreements Between Tenants
Use a continuous service agreement without losing track of owner billing, transfer dates, excluded shutoffs, or properties that should leave the program.
Utility Continuous Service Agreements Between Tenants
A utility continuous service agreement can automatically place electric or gas service in the owner's name when a tenant closes an account. It can protect an empty unit from losing heat, lighting, alarms, or other essential service, but it also makes the owner responsible for usage until a new tenant opens service. Enroll only after confirming the exact properties, meters, fees, exclusions, and cancellation steps.
Understand what the agreement actually triggers
These programs may be called continuous service, continuity of service, landlord reversion, or revert-to-owner agreements. The central feature is an account transfer, not free utility service. When an eligible tenant account closes, billing returns to the enrolled owner or property manager without a separate start request.
Program rules differ in important ways. Hawaiian Electric's Continuous Service Program says service automatically transfers to the owner when a tenant closes service. It also warns that the owner continues to be billed if the former tenant remains after closing the tenant account, and that the owner must notify the utility when the property is sold or removed from the program.
San Diego Gas & Electric's continuity agreement details provide another example. SDG&E charges the agreement holder until a new tenant starts service, does not automatically revert service after a tenant disconnection for nonpayment, and treats removal from the agreement and stopping active service as separate actions.
Those examples show why an owner should read the local tariff or program terms rather than copying another landlord's procedure. Ask which fuels and meters are included, whether nonpayment shutoffs are excluded, what transfer fee applies, where bills go, and whether timely payment on other owner accounts is an eligibility condition.
Enroll and audit by meter, not just street address
Make an inventory with property address, unit, utility account, meter number, service type, and the person authorized to manage it. Mixed-use buildings, accessory units, common areas, and separately metered garages can create expensive mistakes. Do not enroll “all units” until each meter has been matched to its actual space.
Set a turnover reading or photo process where the utility permits it. Record the tenant's stop date, key-return date, owner reversion date, and new tenant's start date. These dates may differ. If a departing tenant closes service early, the owner can become responsible while that person is still occupying the unit.
Require the incoming tenant to confirm that service has started in their name. A lease clause telling them to do so is not proof that the utility completed the transfer. Review the owner's account after move-in and question continuing usage promptly.
If an incoming resident encounters old-account trouble, HomeCo's guide to utility service blocked by a previous tenant's debt covers a different problem: separating the applicant from someone else's balance.
How HomeCo Helps
Use HomeCo to run a turnover checklist for each unit. Assign the stop-date check, owner-account review, meter record, and new-tenant confirmation to named people with deadlines. Put the utility's program name and official contact channel in the property note.
Keep financial details limited to people who manage the account. Other household members may need to know that service is active, but they do not need login credentials, tax information, or full bills. Add a recurring quarterly task to compare enrolled properties against the current ownership and management list.
Frequently Asked Questions
Does continuous service erase the gap between leases?
It can avoid a shutoff when an eligible tenant voluntarily closes service, but exclusions may apply. Nonpayment disconnections, unsafe equipment, emergencies, or an account eligibility problem may not trigger reversion. Check the provider's terms.
Who pays while repairs or showings are underway?
The agreement holder generally pays after service reverts and until the next customer starts service. Track contractor use and owner-authorized use internally, but the utility will bill the named account holder under its rules.
Does selling the property automatically cancel the agreement?
Do not assume so. Utilities may require a separate removal or cancellation request. Confirm every property and meter was removed, stop any active owner service as appropriate, and retain the confirmation.