Detroit Rental Investments: 5 Water Department Questions That Can Save You Thousands (Copy)

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If you’re buying a rental property in Detroit, calling the Detroit Water and Sewerage Department (DWSD) before closing is not optional. Detroit handles water billing very differently than most cities, and if you don’t ask the right questions, you can end up paying someone else’s water bill—sometimes years later.

This article is part of my Detroit Due Diligence Series, where I cover the things investors don’t know to ask but absolutely should. These are real-world lessons learned from owning, managing, buying, and selling Detroit rentals since 2007.

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Why Detroit Water Bills Are Different

Detroit has a system that actually benefits landlords when it’s handled correctly.

There are typically two water accounts per property:

  • Owner Account – The owner is billed when the property is vacant.

  • Tenant Account – When a tenant moves in, they sign a water affidavit and the bill follows the tenant via their Social Security number.

This setup can protect landlords—but only if the paperwork is done properly. If it isn’t, the new buyer can get stuck with old tenant bills, stray owner bills, or surprise drainage fees.

That’s why these five questions matter.

Before You Call DWSD, Gather This Information

Before picking up the phone, have the following ready:

  • The current owner’s name (from the purchase agreement)

  • The current tenant’s name, or the prior tenant’s name if the property is vacant

DWSD will not tell you which bill belongs to which person. They’ll only confirm balances tied to specific names. This is also why title companies often get this wrong—they don’t have all the names.

Question #1: How Much Is Due on the Owner Account?

Ask specifically:

“How much is due on the owner account? Is it ________name?”

Write this down carefully. This is the bill that typically must be paid at closing if the property was vacant at any point.

Question #2: How Much Is Due on the Tenant Account?

Next, ask:

“How much is due on the tenant account? Is it _____ name?”

This is critical for turnkey properties. If a tenant has a $2,000–$3,000 water bill, that bill should follow the tenant—not the buyer.

At closing, title companies often add language clarifying that the buyer understands the tenant bill remains the tenant’s responsibility. Without clarity, sellers can accidentally overpay.

Question #3: Are There Any Other Stray or Old Bills?

This is the question most people never ask—and it can cost you thousands.

I ask it exactly like this:

“Are there any other stray bills out there that could later get attached to this property?”

This could include:

  • An old owner bill from decades ago

  • A tenant bill where a vacate was never submitted

  • A bill that hasn’t yet been attached to the property—but could be

If DWSD later decides to attach it, there’s usually no fighting it.

Question #4: Was a Tenant Vacate Submitted?

If the property is vacant now but previously had a tenant, ask:

“Was a tenant vacate submitted for [tenant’s name]?”

If no vacate was done, that tenant’s water bill can eventually land on you as the new owner. To find Vacate Form Google: DWSD Tenant Vacate Form. Fill it out and email it to landlordtenant@detroitmi.gov.

If the vacate was missed, it’s often better to start one immediately than to ignore it and hope for the best. Even if the dates you submit aren’t correct as to when the tenant moved, the chances of the tenant disputing the bill are slim, from my experience. If they dispute the bill, at least you won’t have to pay for the period the tenant was actually there. You will only have to pay off the disputed time.

Question #5: Has a Final Meter Read Been Ordered?

This question protects both buyers and sellers.

Ask:

“Has a final meter read been ordered?”

Not completed—ordered.

Why this matters:

  • Title companies often hold $300 in escrow until a final meter read is done.

  • Without a final meter read, DWSD can later issue surprise drainage fees or usage bills after closing.

  • Once the final meter read is completed, it becomes a line in the sand—new charges after that point are far harder to justify.

In my experience, you cannot successfully fight DWSD charges later, even with documentation. Prevention is everything.

After Closing: Don’t Pay Too Fast

Here’s a tip most people don’t know:

After closing, don’t immediately pay your water bill.

DWSD can take up to three months to correctly split seller and buyer bills. Paying too soon can mean paying the wrong bill.

Before your first payment, call DWSD and confirm:

  • They received funds from the title company

  • The bill is correctly assigned to you

This applies to buyers and sellers.

Final Thoughts

Detroit is still one of the best cities in the country for rental property investing—but only if you understand the systems that are unique to Detroit.

Water bills are one of the biggest hidden risks I see, and they’re completely avoidable if you ask the right questions.

Want Help Buying or Selling Detroit Rentals?

I work with:

  • Out-of-state investors

  • Turnkey rental buyers

  • Investors buying distressed properties and renovating

  • Sellers with occupied or vacant Detroit rentals

📅 Schedule a call: https://calendly.com/section8rentalmastery/investing
📧 Email: Monique@greatdaypm.com

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