Problems with Landlord

[JoDog]

It has come to my attention that my landlord of over 7 years has apparently been defrauding me for the last 30 months. I'm not sure what to do next, and could use some advice.

I live in a small town in the exburbs of Chicago. Seven years ago, I moved into the basement apartment of a building owned by a married couple. We have had a great working relationship over the years. Two-and-a-half years ago, my sister moved in with me, and we moved upstairs to a larger, 2-bedroom apartment that had become available. The rent at that time was comparable to other 2 bedrooms in the same town. However, in the old apartment I had electric heat and the water heater ran off of electricity. In the new apartment, the heat and water heater were fueled by natural gas.

Over the next 30 months, natural gas prices soared in our area, nearly tripling per BTU. My sister and I often had trouble making the bill, and have denied ourselves a lot to pay it. We froze last winter, and turned down the water heater. I haven't had a hot shower at home in months. We also lived without air conditioning and are preparing the live without cable.

But no matter what we've done, the bill never stops going up. Several times, I asked my landlord if there was anything else that was powered by gas other than my water heater and heat. He said no. Last week, we got the latest bill--$177 for 2 months of service in an apartment without the heat on! I took a closer look at the bill, and found that we were using over 3 times the natural gas units that we used at the same time last year. That is simply impossible. I'm willing to accept that the prices went up, but we cannot be using that much more. Something was up.

I assigned my sister to call the gas company and see if there was a clerical error. Meanwhile, I decided to call the landlords. We have had several new people move into the building, and I was wondering if there could be a mistake with the billing--that we had gotten the bill for more than one apartment. Perhaps they could tell me which other apartments used gas so I could talk to the tenents and figure it out.

My landlady said that I was the only apartment with a gas meter, so no such mistake could have been made. She suggested that we call the gas company and try to straighten it out with them. I told her that I couldn't understand how just using 1 water heater (turned down low) could account for such usage, especially the spike in volume. She was stumped too.

15 minutes after I got off the phone with her, she called me back. She found a note in her files about my apartment, dated 8/9/99. The note stated that she had to lower the rent for that apartment because it was discovered that the renter for that apartment was paying for the gas for the laundry room's water heater and the gas that ran the dryer. She claims that it completely slipped her mind.

There was no mention of this verbally, or in the written lease for the apartment. The laundry room is coin operated, meaning my landlords make money off of it. A few days later, a mechanically inclined friend and I managed to get into the area were all this stuff is. Sure enough, the gas lines for the dryer and washing machine water heater are patched into the same gas line as my apartment. If you didn't know what you were looking for, you never would have seen it.

Landlady said that she did not want to pay the gas company the extra installation and delivery charges it would take to get a second meter put on the building. So apparently just having the 1st floor renter pay for it on their bill was the most convenient solution for her. The reason for the jump in usage was that the building, which used to be half empty, is now full.

The landlady has offered us some solutions for evening out the situation going forward. However, my concern is the need for retroactive payment. As best as we can figure it, at least half of the bills in the summer and a third of them in the winter went toward gas for the laundry room. Our conservative estimate for how much we are owed is around $2,000.

My instinct is to offer the landlords a chance to set this right by asking them straight out for the money. However, some friends have suggested a different course. Their idea is that we first agree on what the monthly amount of renumeration and get it in writing. Then, we multiply that number by 30, and send them a letter asking for that amount of back payment, with an offer to negotiate it. If they do not agree to pay it, then we will take them to small claims court after we move out of the building (I am looking for a new place closer to where I work).

I am brushing up on rental law in Illinois, and it seems so far that the law is on my side--landlords must disclose any costs that renters are required to pay in addition to their rent in the lease. While it is mentioned that the 1st floor tenent must have gas, nothing is said about the laundry room. And I did ask them several times to confirm exactly what the gas bill was paying for--at no previous time did anyone mention the laundry room. And the landlady has all but admitted to me that this is a problem that she needs to solve.

I am beginning to lean toward my friends' way of thinking--the more I think about this, the madder I get. Does anyone else out there have an opinion?

[yardwork]

1. Your landlady's behavior sounds crooked in a number of ways.

First, she patched the laundry room gas line into your apartment without the knowledge of the gas company, to save herself the installation and delivery charges. That's got to be illegal.

Second, she just kind of "forgot" to mention to you that you've been paying for the entire building's laundry gas charges? And she suddenly "remembered" all this just when you were getting ready to call the gas company and have them look into this, at which time it's reasonable to suppose that they might have discovered the shenanigans with the gas line?

I recommend talking to Legal Aid about your rights and definitely seeking a new apartment.

[idgiehkt]

12. it would be better if it was illegal patching like you say.

that's called leverage, lol

I agree, legal aid sounds like the best course, before they even talk to her again.

[JoDog]

14. I have no idea

if the hookup is illegal or not. I have taken numerous pictures of the entire set up.

[Corgigal]

2. I would personally

put this all in writing. Get as many back bills as possible from Gas company. I would ask for 3 months, or more of free rent. Since the apt building is full it might not be a problem for them. Then each Gas bill from now on must be paid, after you issue them a check for your part to her so they can pay the bill.

I would want my free stuff right up front and now. I wouldn't cut up a damn thing. Do it now, they might be feeling guilty and make sure it's all in writing. Name of the lady you talked with at the Gas company, date and time. Everything. This can be worked out but if they don't then off to court you go. Make notes anytime you talk to the landlord now, with dates and times. Get a little notebook and keep it all together for as long as you live there.

Good luck.

[lizziegrace]

3. I think the estimates of your own usage are too high

I had a gas hot water tank and a pilot running on the furnace. I never paid more than $15/month for hot water for two people in the summer. Those dryers are killing you. All but $15/month should be your responsibility. As far as the winter, I can't even guess.

I'd tell her that she has a fixed number of days to correct this (offer a solution and back compensation) or she'll hear from your attorney. I'd also ask the gas company what your usage might be during the winter, assuming the dryers are used the same amount each month maybe??

I'm so sorry this has happened to you and your sister.

[JoDog]

16. The dryer

does seem to be the energy hog. The washing machine's water heater still has the Energy Star sticker on it. With the information glean from that, it looks like each water heater costs about $23 a month to operate. I still have to try and figure out the dryer's energy usage. It's an old model with the energy input listed in BTU's, not the therms Nicor gas uses to calculate its bills.

My sister will be talking to Nicor tomorrow, to try to get average usage numbers for water heater/apartment of our size.

[lizziegrace]

19. The energy tag from the washing machine's hot water tank

is probably for normal residential use. I'd make that higher.

:)

[lizziegrace]

4. One more question

Does your hot water tank provide hot water for the washing machines??

[JoDog]

15. Apparently, there are 2

separate tanks--one for the washing machine, and one for my apartment. Both are gas powered.

[skygazer]

5. I strongly suggest getting some legal advice

Legal Aid or a local housing assistance would probably be able to answer your questions better and would have a clear idea of the laws in your area. But it sounds to me like you've been royally hosed and your landlord knew it.

Document as much as you can and try to get some legal help.

Edited to add - your landlord needs to have that gas line separate whether she wants to pay for the installation or not. That's very shady and I would insist on it.

[JoDog]

18. I'm trying

to get a hold of legal aid. Right now, I would be happy to settle this for 3 months rent (roughly equal to the conservative estimate of my back expenses). Right now, I'm just trying to figure out how I can talk to this woman while keeping my temper.

[lizziegrace]

6. and another thing

;)

Seriously, your situation infuriates me. I would assume $15/month for the pilot on the furnace and hot water. The difference is the laundry room. Use this same amount (the two month bill - $30 for your hot water) and back it off every gas bill and see if you come up with a reasonable number for your heat.

[grace0418]

7. We have a gas water heater and stove (in Chicago) and during the summer our

gas bill is between $10-20 for TWO MONTHS. So you are paying waaaaaaaaaaaaaaaaaaaaaaaaaaaaay more than you should. Does the gas company know this line has been illegally patched? I'm pretty sure they'd have a problem with that, if for no other reason than safety. You don't mess around with gas lines. You just don't.

I would get yourself back into the room where the lines were patched and take lots of pictures of the lines, the laundry, your water heater, etc. Not only are you being defrauded by your "forgetful" landlord but the gas company is too. Not that I'm a fan of the gas company, but I'm guessing if you got them involved you'd have a lot easier time getting your landlord to pay up in small claims court.

[JoDog]

17. I'm no fan of Nicor myself

but it looks like they are not the villain here. We've taken tons of pictures of the lines and the set up, and I plan on printing out 2 sets--one for me, one to keep at the home of a trusted friend.

[huskerlaw]

8. Document, document, document

I'm going to echo what other people in this thread have already said.

Whatever you decide to do, get it in writing. Future rent, future gas charges, and whatever solution you come up with for the back-pay. I would talk to the gas company and ask them what you *should* have been paying per month. They should be able to guesstimate how much a hot water heater would cost to run. Then lower their estimate it a little, since you turned the heat down. Get that in writing too, if you can.

Take pictures of the gas line. Many pictures.

I also agree with involving the gas company...if your landlord balks at the number you arrive at for back-pay, threaten to sue and also threaten to involve the gas company. Find out what the penalty for tampering with a gas line is, and be armed with that knowledge so that your threat has backbone. Then be prepared to follow through with the threats.

I'm always for giving people the opportunity to correct their behavior before waiving the "I'm gonna sue you" banner. That just puts up defenses that potentially don't need to be there. Give them a chance to do the right thing, but only one chance.

[Kali]

9. maybe the gas company needs to see this for themselves?

sounds like the fear of that is what prompted the landlady's memory

[flvegan]

10. I'd get the bill put in the landlady's name, then agree upon how much you'll pay

in addition to the rent. THEN I'd go after past amounts based on that.

The bill shouldn't be in your name if it's also powering community resources. You don't need that liability.

[DS1]

11. If there's only one meter in the buiding, then yes you''re paying for all of it

[Bombero1956]

13. so the landlord patched into a gas line?

illegal as hell. In my neck of the woods only a licensed plumber or pipefitter is allowed to alter a natural gas line. If the landlord did this without the required permits to get around the installation fees the gas company would charge then they have a serious violation.

[undeterred]

20. The landlord knew you were paying for it, so you should get it all up front.

Its not like they would forget something like that.

[LeftyMom]

21. She pays you now or you go to court.

I'm pretty sure she'd be on the hook for the whole amount of the gas bill, likely fines too.

Ladies and germs, this is why it does not pay to cut corners.

Oh, and if you haven't already, get photos of the gas line setup before it's repaired.

[JoDog]

22. Found the state law

The landlady can only be held legally responsible for the amount of power used in the common areas. The law doesn't keep her on the hook for what was actually used in our apartment. So I cannot charge her the whole of the gas bill. And as near as I can tell, she is responsible for making payments retroactive to the day I signed the lease.

My sister and I went over the numbers last night, and it looks like the washer and dryer cost roughly $60 a month to operate at the current gas rates (which are probably going to jump soon). I'm going to start the negotiations with my landlady at $75, and let her take me down to $60. But not a penny less than that. If she doesn't like it, I will suggest that we put the gas bill in her name, and that she bill me for the amount I actually use for my water and heat.

I will also give her the opportunity to offer me retroactive payment ("and this arrangement will be retroactive to....?") either in cash or waiving the rent for a few months. If she doesn't take the opportunity, she will get a letter from me after I receive documentation on the new arrangement from her, listing what I think I am owed and offer her 3 choices: pay in cash, pay in free rent, or see me in court.

Since a part of me is still hoping that this was an honest oversight, I want to give her an open door to do the right thing. I believe that people can only do the right thing if someone else gives them the chance to. Maybe it's a little Pollyanna of me, but I've no idea how long I'm going to have to keep living here.

I will hopefully be speaking to her tomorrow. My sister is gathering some information about average appliance running costs from Nicor to confirm our numbers.

Thanks to everyone who offered advice and support. I'll let ya'all know how it turns out.