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Get all the account and payment information for every utility provider that provides services to the rental property, along with verification that all payments are current. These utilities may include electricity, natural gas, water/sewer service, trash collection, telephone, cable TV, and Internet access. Before the close of escrow, contact each utility company, and arrange for the transfer of utilities or change in billing responsibility as of the estimated escrow closing date. If you give them sufficient notice, many utility companies can arrange for the final meter reading and/or billing cutoff to coincide with the close of escrow, preventing the need to prorate any utility bills between owners.

Also find out whether the seller has any deposits on hand with the utility company and whether you need to place a deposit for service. You may be able to handle the transfer of the deposit through escrow with a written deposit-transfer acknowledgment from the utility.

If a review of the property expenses indicates that utility costs are unusually high, you may want to insist on reviewing copies of the historical bills to determine whether a one-time variance occurred or \the property might benefit from conservation efforts.

Let me reiterate: Verifying the accuracy of all utility bills is extremely important. One of my expert-witness cases involved a water utility improperly charging a property owner for sewer charges related to a water meter used only for irrigation. (Some water utilities exempt irrigation-only meters from sewer charges because the water never enters the sewer system.) In this case, the water company had collected sewer fees for many years until the discrepancy was brought to its attention. The property owner did receive lower bills in the future, but state law protected the company from refunding any overcharges beyond the previous 12 months. The owner paid thousands of dollars in overpayments — a very expensive management lesson.