to include bills or not?

wwp8

i am in the middle of purchasing a house in which i will rent to students (after i refurb it) i just wan to know shall i include bills in the rent for approx £6-£8 or leave it out completely, i always wonder what if the tenants have some type of disagreement when the bills arrive? and refuse to pay etc.

budget_counsellor_shaz

wwp8 wrote: »

i am in the middle of purchasing a house in which i will rent to students (after i refurb it) i just wan to know shall i include bills in the rent for approx £6-£8 or leave it out completely, i always wonder what if the tenants have some type of disagreement when the bills arrive? and refuse to pay etc.

Some landlords do and some landlords don't. We didn't in the first year but have ever since. We still pay the water rates, tv license and the telephone line rental. The rates won't need to be paid. They need to get the tax exemption certificate. I've only had problem with this once and the council were trying to make me pay:eek: and eventually I sorted it out.

To be honest it does put some students off as they worry about the bills. It does ensure that the students don't leave oven hobs on and the central heating on with all the windows open they don't have mum running after them:rotfl:

Hope that helps

Shaz

wwp8

thx for your reply,

i won't be adding phone line or tv license, as they are luxuries.:rotfl:
and students should be swotting up lol, (also most will be foreign students , so no long distance calls )

how much extra did you charge?

and is there a way i can find out the average to pay for a 4 bedroom house, for all 3 utilities , gas/elec/water

Sammy85_2

Hi,

Just remember if you're renting out a 4 bed house (presumably with 4 students in it) You're probably going to have 4 laptops, 4 sound systems, at least a telly in each bedroom and one in living room etc etc... just make sure you take into account all this electricity usage!

Personally i'd rent it out as you would a normal house, just charge rent and all other bills are for them to sort out. They can argue over bills as much as they like between themselves, but there will be no arguement over who's responisble for them at the end of the day. So dont worry about them not paying them.

I rented in Southampton when i was at college and we had to sort out our own utilities and council tax issues (free anyway).

You're probably asking for trouble keeping it all in your name, they wont care how much they're using as they wont be paying the bill at the end of the month!

Also, are you aware of the additional HMO requirements? Our landlord wasnt, and i believe it cost him alot of money in fines and remedial work to bring the house up to standard. When we registered for council tax the council realised that the house was occupied by people not related to each other and wasnt registered at a HMO! If you have less that 5 occupents you dont need a licence, but you do need to provide all the appropriate safety/fire equipment etc. It all gets very complicated (hence why i avoid student digs as my rentals)
heres a link to waverly council on this matter. (they explain it in clearer terms than most!)
http://www.waverley.gov.uk/housingconditions/hmo.asp


Good luck with the refurb!

Mrs_Thrify

Hi, I would have a meter put in for the electric. no phone as everyone has mobiles theese days. I think a tv licence has to be for each room with a locked door (upto the tennents to get one each!)

Best wishes...

morg_monster

No you just need one TV licence for each address. So as long as the house isn't split up into individual, self-contained bedsits, only one is needed.

In most halls of residence you are supposed to have a license each, because the rooms are classed as individual residences, but not in a standard student house.

I think its always a good idea to provide a landline in case of emergencies, also if they want to get themselves broadband (which they DEFINITELY will!) they'll need a landline. Just get a basic BT line put in, as you say they will pay for calls and line rental.

What you could do is include the bills to start with, because it will make life easier for the students, and then review usage, and if its ridiculous, put up the amount. Although then you'll get "But its so-and-so's fault, they have the heater on all the time..." but at least they'll have a good reason to go confront them about it!

Its a tricky one. pro's and con's on both sides...

wwp8

yeah i am still not decided on bills,
i asked a few students in the local area,
1 lad pays £42 pw on rent then his bills are about £6 per week,
the other lad pays £55 per week and his bills are £3 per week but this lad is never at home, same goes with his landlord (who lives in the same house) they are either at work or library,

so i thought maybe £48/50 pw, to include bills maybe £56.50 (odd number i know ) but on second thoughts maybe £60
but seriously not decided

Innys

I don't know why any landlord would want to pay their tenants bills and include it in the monthly rate.

The only possible reason is it would be easier for the tenants and so the house becomes more attractive to them to take up a tenancy. In an area where there's competition for tenants, this MAY make sense.

Personally, I would just drop the rent a little and do without the aggro.