It’s easy to see why more students want landlords to offer rent inclusive of bills. In the last 8 years water bills have gone up by 50 per cent and energy bills have gone up by 151 per cent, making it impossible to predict monthly outgoings. With all-inclusive rents students can accurately plan their finances for the duration of their tenancy.
But are there any incentives for landlords to offer all-inclusive rent packages? Will managing the bills across multiple properties be time consuming? How can a landlord budget for tenants’ energy usage? Will they have to chase tenants for money towards the bills?
Not knowing what to expect can be a big deterrent for landlords not already familiar with all-inclusive lets.
Landlords who decide to let inclusive of bills will find the main benefit is the advantage it gives them over other landlords letting similar properties. Tenants want all-inclusive bills so going down this route will make vacant properties easier to let.
Adding the cost of utilities onto tenants’ rent means the landlord won’t have any extra chasing to do if a payment is missed, it can all be rolled into one fee.
It also means that the bills will definitely be paid. If a tenant has outstanding bills it could result in a pre-payment meter being fitted, which would in turn deter future tenants.
With energy prices continuing to rise, smart landlords are fixing their energy prices for up to three years to protect themselves from spiralling costs.
There is one big variable for landlords doing all-inclusive lets and that’s tenants’ usage. How can a landlord be sure tenants won’t just leave the heating on constant all winter if they know it won’t cost them any extra?
One tactic used by landlords to avoid this is to offer tenants a refund if they use less energy than they have been charged for over the course of the year. The possibility of getting some money back gives tenants a reason to be economical with their usage.
Another option is to include a ‘fair usage’ clause in tenants’ contracts, which would make paying for higher than average energy consumption the responsibility of the tenant. Although the landlord would still need to outlay the initial cash, they would be able to claim it back if the tenants’ usage has been excessive.
Landlords can also minimise the time they’ll need to spend on admin by using Glide. Glide offers multi-site landlords the option to manage bills across all of their properties in one place by using an online portal.
Landlords considering including bills should speak to local letting agents to find out what is the most popular option in their area.