Managing a rental property comes with many responsibilities, and one aspect that often gets overlooked is utility management during tenant transitions. That’s where a Utility Continuous Service Agreement (CSA) can make life easier for property owners and managers. But what exactly is a CSA, and why is it worth considering?
What Is a CSA?
A Utility Continuous Service Agreement is a contract between a utility provider and a property owner. Its purpose is simple: to ensure utilities like electricity, water, or gas remain active during the periods when tenants move out and before new tenants take over. Essentially, the utilities automatically revert to the owner’s name when the property is vacant, preventing service interruptions.
Why Having a CSA Matters for Owners
Maintaining continuous utility services is crucial for protecting your property and ensuring smooth operations. Outages during vacancies can lead to costly damages, such as frozen pipes in winter or mold growth in humid conditions. A CSA eliminates these risks by keeping essential services running.
The Potential Drawbacks of a CSA
While CSAs offer many benefits, they’re not without their downsides. As a property owner, you’ll be responsible for utility costs during vacancy periods, which can add up if the property stays unoccupied for an extended time. There’s also the risk of tenants delaying the transfer of utilities to their name, leaving you responsible for unintended usage. Finally, some agreements might lack flexibility, requiring all units on a property to be included—even if that doesn’t suit your preferences.