DWSD Hacks to Save Money
/How I Saved My Client $12,000 on Detroit Water Bills (And What Every Investor Needs to Know)
If you own rental properties in Detroit — or you're thinking about buying some — this could be one of the most important things you read this year. I'm going to break down exactly how I saved my client $12,000 on water bills during a property sale, and more importantly, teach you how the Detroit Water and Sewerage Department (DWSD) actually works so you can protect yourself too.
A Little About Me
My name is Monique Burns. My husband Pat and I have been buying houses since 2007. I'm a real estate broker in Detroit, and I specialize in connecting buyers and sellers of rental property portfolios. I've also been a property manager, so I've seen firsthand how the water department operates — and how it can trip investors up.
What Happened With My Client
I was wrapping up the sale of a rental property portfolio when the buyer's agent made a demand: he wanted my seller to pay ALL the water bills— including the ones racked up by the tenants.
The total? About $12,000.
I pushed back immediately. Here's why.
The Key Thing Most People Don't Know: There Are TWO Water Accounts
In Detroit, the water department maintains two separate types of accounts
Owner Account, belongs to the property owner, Active when the property is vacant
Tenant Account, belongs to the tenant, Active whle a tenant is living there
My seller had zero balances on his owner accounts. He had always paid his bills during vacancy periods. Clean as a whistle.
The $12,000? That belonged to his tenants. And under Michigan law, water bills must follow the tenant— not the property owner.
So Why Do Some Owners End Up Paying Tenant Bills?
This is where it gets a little tricky — and why I woke up at 3am second-guessing myself.
There is one main reason a tenant's water bill can get transferred to the owner:
A "vacate" was not filed within 20 days of the tenant moving out.
When a tenant moves out, someone needs to notify the water department so the tenant's account gets closed out at that address. If that doesn't happen, the meter keeps running — and eventually, that bill can land on the owner.
The 3 Ways a Vacate Can Happen
After a very long phone call with DWSD (that got escalated to a supervisor), I learned there are three ways a vacate can be processed:
1. The owner files the vacate— This is the 20-day rule. The owner submits paperwork within 20 days of the tenant moving out. This is the best practice.
2. The tenant vacates themselves — A tenant can request to close their own account if they don't want to keep getting billed after they move. But don't rely on this! You can't trust that your former tenant actually did it.
3. The system force-vacates the tenant— This happens automatically in two situations. The tenant moves into another Detroit property (the tenant bill follows the tenant to their new address), or a new tenant moves into your property (the system closes the old tenant’s account and opens a new one)
What If You Don't Know When Your Tenant Left?
This is a real problem — especially for out-of-state owners or busy property managers who might not realize a tenant has moved out for weeks or even months.
Here's what I found out: If you call the water department and explain the situation, a knowledgeable rep may be able to look at the usage data — specifically, when the water stopped being used — and do a force vacate based on that date.
The catch? Not every rep knows how to do this. You might get someone who doesn't know what you're talking about. We need to specifically ask them to look at usage to determine the vacate time.
My Best Practice Takeaways
Here's exactly what I recommend based on everything I learned:
1. Always Know What's on BOTH Accounts Before Closing
Don't rely on the title company to tell you this. They typically only see the active account — they don't separate owner vs. tenant balances, and they don't have tenant names on file.
Call the water department yourself and ask specifically:
- How much does the owner owe?
- How much do the tenants owe?
-If the house is vacant, ask if a tenant Vacate has been filed (DWSD just has not processed it yet).
2. If a Tenant Moved Out and No Vacate Was Filed — Call Immediately
Call DWSD and specifically ask them to:
- Review the usage history to determine when water stopped being used
- Process a force vacate (my term!) based on that date
Make sure to explain that you're a new owner (or a buyer about to close) and it's not fair for you to inherit a tenant's unpaid bill.
3. Follow Up After You Call
The water department can be slow to process requests. Call back to confirm:
- Is the tenant account now inactive?
- What date was the vacate effective?
- What portion of the bill is yours as the owner vs. the tenant's?
4. When Submitting Owner Documents, Be Crystal Clear
When you submit any paperwork to DWSD for an owner account, specifically state that this is an owner account and that any active tenant accounts should remain separate. Don't let them accidentally roll a tenant balance onto the owner.
The Bottom Line
Detroit's water department system can feel confusing, but once you understand how owner and tenant accounts work, you have real power to protect yourself — and your clients.
My seller walked away from that closing without paying a dime of his tenants' $12,000 in water bills — because he understood the rules, followed the process, and had someone in his corner who knew how to push back.
Now you know too.
To find the Tenant Vacate form, Google “DWSD Tenant Vacate” and you will be led to the fillable form. I always email these to landlordtenant@detroitmi.gov. There is another email they tell us about on the phone, MyDWSD@detroitmi.gov, but that’s a much slower email. I feel like the people in the Landlord-Tenant department are the smarter ones.
Have questions about buying or selling Detroit rental properties? I'd love to help. Feel free to reach out or schedule a call.
Calendly: https://calendly.com/section8rentalmastery/investing
Or email me directly: Monique@greatdaypm.com
And if you found this helpful, go check out the full video on YouTube! Don't forget to subscribe for more Detroit real estate tips every Saturday.