Complete Conversion - Solution?

socrates

In the early stages of converting a disused premises into 6 studio flats.

I have been quoted ridiculous money to provide 6 Electric and Water Supplies by the Utility Companies - over £20k and poor lead times.

I figure rather than spending money on that I would set up a solution where I get some kind of return for my outlay

I have thought about a solution where I include Electric and Water in the proposed rent - meaning I can install the following solution:

Solar panels on flat roof - then connected to a large water tank which feeds into unvented storage tanks which feed into - showers and sinks and separate infra red wall heaters

The property is laid out - 3 units ground floor, 2 units first floor and 1 unit second floor

It has a 3 phase supply with 2 electric meters already installed


Does anyone have any other suggestions or ideas?

spiro

I presume you are a business because you are not going to be able to pass on the higher rate of VAT or climate levy to the tenants. You are also going to be on a fixed term contract.
The other issue will be setting the rent for the first rentals as you'll have no idea what how much the tenants will. It could either put of low users or encourage high users. I would suggest you fit sub metering so you can billed on use.

socrates

spiro wrote: »

I presume you are a business because you are not going to be able to pass on the higher rate of VAT or climate levy to the tenants. You are also going to be on a fixed term contract.
The other issue will be setting the rent for the first rentals as you'll have no idea what how much the tenants will. It could either put of low users or encourage high users. I would suggest you fit sub metering so you can billed on use.

At this stage I am more concerned about the viability of set up of the equipment - and a costing

As for the billing I intend to include it in their rent - just how much electric can one person use in a Studio Flat?

spiro

socrates wrote: »

At this stage I am more concerned about the viability of set up of the equipment - and a costing

As for the billing I intend to include it in their rent - just how much electric can one person use in a Studio Flat?

Someone who likes it warm could have heating running 24/7, I used to work with a woman who set her heating to 28c, she even wore coats in the office (20c) in the summer. Cannabis farms use a lot.

socrates

spiro wrote: »

Someone who likes it warm could have heating running 24/7, I used to work with a woman who set her heating to 28c, she even wore coats in the office (20c) in the summer. Cannabis farms use a lot.

Extreme examples methinks - but I take your point

matelodave

My MIL would have the heating on full bore (thermostat to max) plus an electric fire on two bars and would regulate the temperature by opening a window.

Some people can use a stupid amount just because as far as they are concerned it's been paid for. I go caravanning and you can see how wasteful people are when you see infra-red heaters flogging away in an awning all night - it usually only happens where the electricity cost is included in the pitch fee. Those who have to pay for what they use are usually a bit more careful, even if they aren't, then it's them who have to bear the cost not the landlord.

As said above you would be better off with sub-metering and making people pay for what they use. Likewise with water, I'm sure you could fit your own meters into each of the flats. As long as you only charge what you pay for it then there shouldn't be any problems.