With the huge increases in gas and electricity prices, staying on top of the bills is becoming more and more important. In a rental property this task can become even more complicated. What happens if a tenant moves out leaving a large outstanding energy bill leading to a dispute? Or what happens if a previous tenant messes up the final meter readings and a new tenant ends up paying for that mistake? These are all things that need to be considered and, in this article, we have a look at the best ways to manage energy bills in rented properties to ensure that there is no dispute at either the start or the end of the tenancy period.
Rental Agreement
The first place to start is the rental agreement. The agreement needs to make it perfectly clear who is responsible for what bills and for ensuring that payments are up to date. Typically, unless otherwise stated, energy bills are the tenant’s responsibility. If the tenant is the person liable for the energy bills then they do have the right to change supplier, even if the landlord has a preferred supplier. Landlords should make sure that the tenant keeps them notified of supplier changes and that the current supplier is specified at the end of the tenancy. Making these points clear in the tenancy agreement can save a lot of confusion.
Meter Readings
It is vital that during both the check in and the check out process accurate meter readings are taken for gas, electricity and water. The documents should reference the meter numbers and their locations to ensure that readings are not taken from the wrong meter by mistake. Both the tenant and landlord (or their representative) should take dated photographs of all the meters and their readings at both check in and check out. Make sure to have the tenant sign the documents to state they agree to the readings. It is also advisable to do the same at the regular inspections to make sure that the landlord has regular updates on usage and the current status of the meter readings.
If there has been a period where the landlord has taken over responsibility for the utilities, in a void period for example, then at the start of the tenancy, the landlord should send the details of the new tenant to the existing supplier with the meter reading. Timely communications are key to a smooth transition and will ensure no one is left paying for someone else’s usage.
Reminders
As part of the regular property inspections and also in the period leading up to a tenant moving out, it is prudent to gently remind the tenant to keep up with payments and that they will need to pay the final balance on the existing supply contract at the end of the tenancy, just so there is no confusion in the run up to the check out. During the check out the tenant should give a forwarding address and it would be worthwhile asking for proof of that address. This way any final bills can be properly forwarded to the tenant if a postal redirect has not been set up.
Managing energy bills in a rental property is not easy and it needs to be made clear in the rental agreement who is responsible for which bills, the check in and check out process needs to be robust and photos of each meter taken with a time stamp and a signed agreement from the tenant. Taking these relatively simply administrative steps will avoid awkward and unnecessary deposit disputes.
