Please Note: This Article is 10 years old. This increases the likelihood that some or all of it's content is now outdated.

The Residential Landlords Association is preparing to plug any move to make its members responsible for tenants’ bad debts to regional water companies.

The suggestion is one option said to be under consideration by the government’s ‘Walker Review’ of water charging and metering.

The suggestion has come from Ofwat as water companies face a flood of bad debts.

The companies complain that landlords rarely identify tenants to them as the people responsible for water charges – and being ultimately responsible for a defaulting tenant’s unpaid water bill would be one incentive to do so.

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But this is likely to force up rents to cover the extra liability, says Richard Jones – lawyer for the Residential Landlords Association – whose members need things more watertight at over 100,000 private rented properties throughout the UK.

“Responsibility for unpaid water bills would come at a time when money is already being held up in tenancy deposit schemes,” he says, “and landlords would be unable to just produce the cash.

“It would just be yet another requirement on top of the crippling legislative burdens that have been heaped on private sector landlords in the last few years. It is important that the tenant who is the consumer has the direct responsibility for paying the account. This helps conserve water, particularly when the supply is metered.”

RLA chairman Alan Ward is another to get that sinking feeling.

“It would make landlords look like drips if tenants realised they could stop paying their water rates and leave them to pick up the bills when they leave,” he said. “And, if the floodgates were opened, landlords could drown in a deluge of other debts from electricity and gas utilities.”

• The Residential Landlords Association is a leading national organisation with members owning over 100,000 properties in the UK’s professional private rented sector. The range of members’ services – on www.rla.org.uk – includes legal advice, insurance, financial services, credit referencing and training.

Please Note: This Article is 10 years old. This increases the likelihood that some or all of it's content is now outdated.

1 COMMENT

  1. Landlords to be Responsible for Tenant\’s Debts?
    This is a very important issue which could face landlords soon.
    A government commission is currently looking at the possibility of making landlords responsible for paying water charges when tenants don\’t pay them.
    This is as a result of a spate of bad debts faced by water companies as increasing numbers of properties are tenanted, the recession, and because landlord\’s don\’t always inform the utilities suppliers who is responsible for paying.
    Landlords or agents should always notify untilities suppliers in writing each time there is a tenancy change, so there is no doubt as to who is responsible for paying the bills.
    It\’s then the suppliers responsibility to chase the debts.
    However, if this proposal was to be implemented it could be the thin end of the wedge – electricity and gas suppliers would no doubt want the same powers.
    This would then mean that landlords would have no option but to add a premium to rents to cover these charges.
    The problem then would be, there would be no incentive to save – tenants would run up bills willy nilly. This is always the case when tenants cannot be metered separately or when they share bills.
    The landlord associations will no doubt be fighting this on behalf of their landlord members, but you should be prepared to lobby your MP if necessary.

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