Four lettings- how to handle Utility Bills?

[cpg]

Hi All

I'm going to be renting out a house with 4 seperate ASTs and all bills included.

I want to set a monthly limit in the AST as to what electricity and gas will be covered and anything over this amount will be deducted from the deposit. Has anybody got experience of this and what would be a suitable amount to set for a 4 person house? I just don't want to be lumbered with sky high bills and to have some sort of control.

I've searched the forum regarding utility bills and HMO's and not come across anything so apologies if I've missed something.

Thanks in advance and great site btw!

[Energise]

I cant see how it would work, as they wont have joint and several liabilities how will you know which tenant to bill for using to much?

[stan3000]

It may be a bette option if you allow the occupants to be responsible for the utilitiy bills themsleves.

They can then decide between themselves how much each tenant should pay.

[cpg]

Hi guys, thanks for the advice. I do prefer having the utility bills in the tenants names, but having looked around at other rental properties in the locality, utility bills are covered in the rent.

If I were to go down that route of adding a clause as to a limit on what is covered would I be infringing a tenant's rights through unfair terms?

[MrShed]

But....if that is the case in your region surely all the more reason to do it without the bills included, as the rent will appear lower? If you really want to do it how about you tell the tenants that the bills are in their names, they pay them, but you will contribute X amount towards each bill?

[ourlol]

I have set an all inclusive rent on my property in Merseyside. To be honest - were it not for the fact my son is one of the tenants - I would be hesitant about doing it again. I charge £58.65 pppw and this covers the rent, utility bills (gas & electric), water rates, TV License and a networked 8 meg broadband connection. The only thing I don't pay for is the cost of any phone calls. As students they are exempt from Council Tax. I have a standing order for £75 per month for the combined utility charges and I have a shortfall. All I can do is try to impress on them to turn off lights and to use the thermostats on the radiators etc. etc. TURN THEM DOWN LADS!!

By the time I pay the mortgate and allow for Landlord insurances, upkeep, annual corgi inspection etc. I am not making a profit.

In my case I will be happy with the proceeds from any future resale of the property. Were I looking at trying to get an annual yield then I suspect I would opt to charge rent only and let the tenants pay their own utility bills etc.

[cpg]

Hi guys, thanks for all the advice.


I have a similar issue - the bills come to about £100 per house per month

How many people would share one of the houses for that amount?