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switching utilities over to tenant in Pa

Lease signed by renters' specifies that all utilities including water and sewer will be paid for by renters'.  Renters' have not switched over the water & sewer for four  months of six month lease.  Even after reminders ,verbal and written have been given.  Excuses given for all reminders.  Lease expires end of Aug. 2013.  Should I raise the rent in the new lease to cover?  Average is $80. per month for both so far.  Or just notify them  that if July's bills not paid by them I will not be renewing their lease. And they will have to vacate by 08/31.   This is the only issue with this couple.  No other complaints from neighbors  about them either.

You have a few options. I would warn them that if the utilities are not switched over and paid for, then you will not be renewing their lease. If it is a provision in the lease you can evict them. If you like the tenants, then amend the lease to you paying utilities, and increase their rent a little. It is up to you.
Make sure you get familiar with California Landlord tenant law so you are following the correct procedures.
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