Why is the disconnection or transfer of utilities under my (lessee’s) name required before releasing my security deposit?

In the case of long-term leases and at the end of the lease, part of our process in clearing the security deposit of the lessee is the release of all obligations connected to the property being leased.

This includes obligations arising from utility subscriptions (like cable TV, internet, phone and electricity) entered by the lessee, even when the subscription account is solely under the lessee’s name.

Many public utility providers still hold the lessor and/or the property accountable for outstanding obligations under the address of the property. If a lessee already leaves the property but does not disconnect, transfer or otherwise end the connection between their utility subscription account and the property, the next occupant in that property may be prevented from opening their own utility subscription account at the same address.

It is not right for the obligations of the former lessee to become, in any way, a burden for the next occupant of the property or for the lessor.

For this reason, part of the provisions of our lease contract is for the lessee to settle all outstanding obligations due on his account, before we can return the security deposit or the remainder, after applicable charges.