By now, landlords and letting agents may have heard of inclusive bills options in different tenancies. With the struggle of juggling utilities and providers, bills included with rent can be a saving grace. Combined monthly payments are especially helpful to those letting properties for the first time.
That’s why we’ve created this FAQ guide to tackle the most asked questions about bills included. We’ll cover what inclusive bills packages provide, their advantages and disadvantages, and other billing questions. Here, we’ll help you decide if inclusive bills are perfect for you and your tenants.
What are inclusive bills?
Inclusive bills combine utilities and rent into one monthly payment. University accommodation usually offers bills included with their rent, but landlords and agents may also include it.
In tenancies that offer non-inclusive bills, tenants will pay for rent and utilities separately.
What utilities are offered with bills included?
Landlords can decide what utilities to provide in their inclusive bills options. They can include:
- Energy
- Water
- Gas
- Wi-Fi
- TV Licence
- Council Tax
Inclusive bills can include as many utilities as you want. For example, our service Resooma Bills can adjust what utilities you want and take out anything you don’t need. If tenants are browsing all-inclusive bills options, they can leave out what you already provide, like electricity.
Remember that students are exempt from paying council tax.
What are the advantages of having bills included?
Convenience for landlords and tenants
We know different payment dates, calculating costs, and managing payments can be a hassle. With utility bills included in your rent, bills combined into one monthly payment saves you from scrambling to pay bills. It’s also convenient for tenants to know how much they’re paying each month, so keen budgeters don’t have to worry about their bills.
Your property is likely to attract more tenants
Resooma understands students and what they’re looking for. 75% of students told us that they prefer to rent with bills included. All-inclusive bills are more attractive to students who want hassle-free ways to pay.
Quick and smooth moves
Rent with bills included cuts back time setting up utilities. Tenants experience a smooth move-in with everything already set up and ready to go. With Resooma’s all-inclusive bills service, we set up and liaise with utility providers. You won’t have to stress over organising utilities.
What are the disadvantages of having bills included?
Management may be difficult in a larger property portfolio
If you’re a landlord with multiple properties, juggling and keeping track of utility providers may be difficult. If you manage a portfolio of properties with bills included in each tenancy, be sure to keep on top of payments.
Overuse of utilities could cause fluctuating payments
Whether you have a pay-as-you-go or unlimited plan, overuse of utilities could cause fluctuating costs. It’s essential to take regular meter readings so tenants can manage and watch utility usage. Resooma’s smart meters send automatic readings to your dashboard, so you don’t have to worry about manually taking readings yourself.
You still need to pay utility bills if the tenant fails to do so
Missed payments and rent arrears can happen for many reasons. For whatever reason a tenant misses a payment, you’re still responsible for paying the bills. To find out how to deal with rent arrears, check out our advice here.
Can tenants change utility providers if they rent with bills included?
Tenants cannot change utility providers if the landlord has a bills included option and is paying the bills.
However, if students are in a non-inclusive bills agreement, they have the freedom to shop around and change utility providers. If they change providers, and install new meters in your property, they must let you know of these changes.
Who is responsible for paying utility bills?
One person, especially within HMOs (house in multiple occupation), must be responsible for paying utility bills. Whoever is registered with the utility provider, like the tenant or landlord, will pay the bills.
Who is responsible for paying utility bills during void periods?
Void periods are when a property remains unoccupied by a tenant. During these periods, it is the landlord’s responsibility to pay utility bills. If there is an issue with unpaid utilities and council tax at the end of the previous tenancy, landlords are not responsible for this.
Landlords should ensure they inform their local government about changes to tenancies. The same must be done with utility providers when a tenancy changes. When a tenancy ends, you should register your name with the utility provider to pay for bills during void periods. Remember to take meter readings at the start and end of tenancies to provide to your utility providers.
If you have an unfurnished property during void periods, you can apply for a reduced council tax for up to six months. For more information on furnishing and unfurnished properties, check out our article on it here.
What Resooma Bills can do for you
Bills management can be a nightmare for both landlords and their tenants, especially across a portfolio of properties. If you’re looking for an all-inclusive bills service, Resooma could be the answer for you.
Our all-inclusive billing options have several benefits to tenants, landlords, and agents. We include as many utilities as you like, from energy to Wi-Fi to council tax! We’ll combine these and your rent into one simple monthly payment that you can manage on our easy-to-use dashboard.
Using our bills service, you can increase your annual revenue stream by £10,200 if you want to manage bills personally. Alternatively, you can earn a commission that we’ll pay upfront for each tenant referred to us. Tenants keep in touch with us and are responsible for their bills. Moreover, you won’t have to worry about keeping up with payments.
But don’t just take our word for it. Take a look at what renters who use Resooma think.
Resooma understands managing properties and their bills aren’t easy. But with our bills service, we aim to take the pressure off landlords, agents, and tenants. If you’re interested, get in touch with us and find out how smooth we can make the move for you.