Charged business rates, renting a domestic 2 bed flat

Sammykj1

Myself and my partner rent a 2 bed flat. Through a small local estate agent, the flat was just advertised at £525pcm. Once we signed up for the flat we were told the landlords send us the bill quarterly and we don’t organise our own energy providers. 

They also own and rent out the flat next door and commercial property below. We have just received our bills for the summer period;
the gas bill had no units ect just the dates from and to with what we feel is a very high bill for summer. 

The electric had units at 24p per unit a standing rate and CCL

when talking to the landlord he said that because the property used to be commercial we have to pay business rates. And that there isn’t any budge on this. 

Seems our bills monthly are going to be more than our rent and don’t know how we can get charged business rate as domestic tenants? 

Any advice will be welcomed. Thanks 

jbuchanangb

There may be several steps to resolving this, but I think the first question has to be, do you have access to the meters? Are you able to take readings and verify that the amounts you are being asked to pay are derived from those meters?

Sammykj1

The gas meter is in the shop downstairs, we could ask them if we can go in and have a look when they are open but we don’t have free access to the meter. The water and electric they get as one bill, and then have separate meters on the pipes that they use to split the bill for who has used what.. us, the other flat or the shop. 

Curiousgirl1

Sounds like one meter supplies the whole building & there are sub meters to tell who is using what. 

Depending on what the standing charge is, you can maybe argue that one out as the owner will only be charged 1 amount so if he divides it by 3 then fair enough but if he’s charging you all the full amount then that’s wrong. 

Might be worth having a chat with Citizens Advice to see what the landlord can or can’t charge - I think there is some sort of limit on price he can charge you compared to what he is paying. Also if there are sub meters you should check the readings on these. 

Other than that don’t think there is a great deal you can do about this unfortunately other than find somewhere else to live. 

MWT

Sammykj1 said:

the gas bill had no units ect just the dates from and to with what we feel is a very high bill for summer. 

The electric had units at 24p per unit a standing rate and CCL

Yes, the landlord can charge you at the business rate that he is paying, but he cannot charge any more than that.

No, he cannot pass on the CCL.

What rate of VAT is shown on your bill?

He will be paying VAT at 20%, but he can only charge you VAT at 5%.

He must also show the units used for both gas and electricity if there is a sub-meter installed, and he must show you the bill or other documentation to prove the costs he is being billed by his supplier.

If there is no sub-meter than he can use estimated figures, but he must explain the basis for the split of the costs.

Sadly though, if he does not comply there is often little you can do other than move elsewhere.

Take this as a learning moment though and never move into rented accommodation without ensuring that you will be able to have your own energy accounts direct with the supplier...

dbks

Sammykj1 said:

Myself and my partner rent a 2 bed flat. Through a small local estate agent, the flat was just advertised at £525pcm. Once we signed up for the flat we were told the landlords send us the bill quarterly and we don’t organise our own energy providers. 

They also own and rent out the flat next door and commercial property below. We have just received our bills for the summer period;
the gas bill had no units ect just the dates from and to with what we feel is a very high bill for summer. 

The electric had units at 24p per unit a standing rate and CCL

when talking to the landlord he said that because the property used to be commercial we have to pay business rates. And that there isn’t any budge on this. 

Seems our bills monthly are going to be more than our rent and don’t know how we can get charged business rate as domestic tenants? 

Any advice will be welcomed. Thanks 

My advice would also be to get out as soon as possible.

Unfortunately, you appear to have a rogue landlord, who has converted commercial premesis to part residential, whilst having no care for the safety of those residential tenants. If you do not have free access to the isolation value of the gas supply to your property (that is located by the meter) then you are unsafe.

You may wish to seek independant legal advice over the matter you say you entered a contract (a tenancy agreement) without being made aware of further additional charges you then become by dint reponsible for, especially when you say those additional charges will cost more than than the cost of the main contract.

What is the commercial property below these 2 residential flats currently being used for? e.g. type of industry.
What is it's usual operating hours?

macman

If the whole property is classified for business rates, then what is the situation re Council Tax? 
You may find that the LL has not registered your flat for CT. If so, and the LA find out, then, as occupier, you will be liable for all CT due backdated to the start of your tenancy. 
If it's sub-metered, then you are entitled to a proper bill that shows the unit rate, s/c, and the units used.

alsa1

I would also add apart from the advice already given on the meters that you may want to ask for a copy of the EPC, which should be in place before the property was offered for rent. But as suspected it seems you are in a property that may be unregistered with the council, therefore no EPC has ever been conducted probably.

it is illegal on the LL’s part to advertise it for rent without one. How long is your tenancy for?

QrizB

alsa1 said:

I would also add apart from the advice already given on the meters that you may want to ask for a copy of the EPC, which should be in place before the property was offered for rent.

... and the Gas Safety Certificate and Electrical Safety Certificate, for that matter.

wild666

Many shops also have a living space for the shop owner. The Shop and the living space, IMO, should have two meters one for the shop and one for the domestic use of the shop owner or whoever lives there. 
It seems like the shop owner has converted the space into residential property and hasn't told anyone that they want to do this, I believe the shop owner would need planning permission and a change of use for part of the property and have to have the permission of the council and planning authority do do this.

CIS

Sammykj1 said:

Myself and my partner rent a 2 bed flat. Through a small local estate agent, the flat was just advertised at £525pcm. Once we signed up for the flat we were told the landlords send us the bill quarterly and we don’t organise our own energy providers. 

They also own and rent out the flat next door and commercial property below. We have just received our bills for the summer period;
the gas bill had no units ect just the dates from and to with what we feel is a very high bill for summer. 

The electric had units at 24p per unit a standing rate and CCL

when talking to the landlord he said that because the property used to be commercial we have to pay business rates. And that there isn’t any budge on this. 

Seems our bills monthly are going to be more than our rent and don’t know how we can get charged business rate as domestic tenants? 

Any advice will be welcomed. Thanks 

You need to contact the local council tax team and ask that they inform the VOA that the property is now domestic in respect of the flat.