Tenants using huge gas (I agreed to pay in contract). What can I do???

jswill100

Hello all,

Basically I just started my first Buy To Let house with 4 tenants. They each have a *seperate* tenancy agreement (a group agreement seemed unrealistic with 4 strangers). In this agreement I have given them a single price that includes all their bills.

I set these prices based on my own house (just around the corner, again with 4 people, 3 lodgers and me) where we use gas quite sparingly and the houses frankly are modern and well insulted anyway, with highly efficient boilers.

The new lots are very good tenants in general, but they keep the house literally like an absolute sauna all the time!!! I have just submitted some meter readings and it turns out they have used a full THREE times as much gas over the last 3 months as my own house (both modern houses built at the same time by the same company - same insulation and gas system).

This is going to kill off any profit I had hoped to make almost completely - does anyone know my rights here? It seems to me since I have agreed to pay, I have no way out (I can't suddenly start charging them more rent or asking them to pay the bill, I assume, since I agreed to do this).

Do I simply have to wait for their contracts to expire and then put forward a new deal (where they pay the gas/elec themselves, ideally). This is awkward since they are all on differing lengths of tenancies (between 3-6 months) so I am unsure how it would work.

Can anyone offer any advise??? Once I know my rights I am going to write to them (first of all just to politely let them know the situation and ask them to keep their usage down, but it would be great to know where I am legally before this).

Any help MUCH appreciated.
John

Mallotum_X

Did you include anything about reasonable usage in the contract?

haras_nosirrah

I had 3 tenants in an HMO and I paid the bills as they were all coming and going at different times

I put a reasonable use clause in the contract of £95 a month for gas and electric combined. If they went over the cap they paid the difference, if they went under then I gave them money back

I took gas and electric readings every 6 months (so £570 was the allowed bill) or when someone left I took meter readings and did based on number of months since the last reading. If I owed them (e.g. they had arrived in the summer) then they could take it off the next rental payment or put it toward the winter bills. If they owed me they paid it with the next rental payment.

Bit of a faff keeping records but meant they didn't take the pee with the heating. I put it in when I caught one washing and then tumble drying a solitary shirt in summer.

I think it is only fair if imposing a cap to give money back if they don't use it all - gives them an incentive to not heat it like the tropics.

How big a bill are we talking?

PParka

Hi,

I'm not sure what you can do about it apart from ask them nicely.
However, you could always fit a room thermostat that has an upper temperature limit. Similar to those used in hotels.

Regards
Parka

Johnandabby

Lots of lockable thermostats on the market that can be easily fitted - set it at maximum of 21oC.

The key thing is including 'reasonable usage' in the contract as noted in Mallotum X post above. I haven't lived in a HMO where the heating hasn't been on 24/7. If people don't have to pay, they don't think about consumption - exactly the same with free bars and buffet lunches!

theartfullodger

jswill100 wrote: »

... ...

This is going to kill off any profit I had hoped to make almost completely - does anyone know my rights here?


....

Profit eh?? Well, in business sometimes one has a bad year and sometimes there's an opportunity to learn from your mistakes..

In future, put some limits (contractual, physical...) on usage or bump up the price...

What do you expect people to do is extra heat is free??

eschaton

Unlimited heat was silly to do in the first place.

I sometimes rent a house on Isle of Skye for holidays with inclusive bills.

Suffice to say, the house is normally like a furnace with coal fire on as well - when it gets too hot, I open the doors

kingpin1

just make a boxing in around the controls that only you have the key for then set on auto twice a day

G_M

This is an HMO yes? Licenced? Council tax aid by....?

You can't change the terms of your contract half-way through. Indeed, while suggestions of lockable thermostats etc are sensible and good lateral thinking, I suspect even that would legally contestable.

The TA says you will pay for gas. It says nothing (apparantly) about 'reasonable usage' OR about limiting the supply (of gas and/or heat). Suddenly introducing a new limit to usage, which was originally unlimited, is in effect changing the terms of the contract.

kBHX

I might rent a room at yours next winter! I could save a small fortune with the unlimited heating on offer :-)

As mentioned above only thing you can do is to have a word with the existing tenants. For future add a reasonable usage clause into your agreements and controlled thermostat as suggested. I learnt a similar lesson with a lodger who insisted on running an electric heater at full blast in his room all day even when he was at work.

olly300

kBHX wrote: »

I might rent a room at yours next winter! I could save a small fortune with the unlimited heating on offer :-)

As mentioned above only thing you can do is to have a word with the existing tenants. For future add a reasonable usage clause into your agreements and controlled thermostat as suggested. I learnt a similar lesson with a lodger who insisted on running an electric heater at full blast in his room all day even when he was at work.

Depending on the heater design that can be dangerous.

There are clauses and a law about behaving in a tenant like manner.