Bills inclusive private rented student accommodation question

MWT

swimbikerun100 said:

The allowance for a 3 bed property with 3 tenants is £1490 total for all bills (water, energy, internet) for 52 weeks.

Do pay attention to the '52 weeks' part as it means they have to cover the long summer break as well even if nobody is in the property, so take care not to leave the water heating running for example and if there is a shorter letting period for any reason, that £1490 would be reduced proportionately.

Gerry1

swimbikerun100 said:

Would you say we have any case for them to increase the allowance given they state fair usage - as obviously it won't cover fair usage?

The 'generous allowance' isn't all it seems.  It's more a case of 'heads the students lose, tails the landlord wins'.  If the bills add up to less than the notional figure then the landlord trousers the difference, and if they are more then the landlord applies an unspecified surcharge.  And if the allowance is increased to a more realistic level, then no doubt the rent will be increased by the same amount, so be careful for what you wish.

If finding another property is unrealistic then it might be better to propose that the students manage and pay for their own utilities.  Usually each account has to be in the name of one person, so beware the risk that one or both the other students could 'forget' to pay part of their share especially if they drop out, reach the end of their final year or are returning overseas.

Also beware of commercial organisations that offer a 'split your bills' direct debit service.  They may prevent the 'bunking off' problem, but the rates are usually stratospheric even in normal times and there are often swingeing exit fees.

Sorry for all the gloom and doom, but forewarned is forearmed...

Ant555

MWT said:

Ant555 said:

Is the allowance £1490 per student?

No, for the property as a whole, as per the first post...

swimbikerun100 said:

The allowance for a 3 bed property with 3 tenants is £1490 total for all bills (water, energy, internet) for 52 weeks.

Yes, it just seemed quite cheap at £10/week per student for Gas/Leccy/Water and broadband even though many student properties are often unoccupied for much of July and August.  

I also wonder if this hasnt been updated despite then energy costs going through the roof.

My daughter had bills included for year 2 and then they did their own utility bills with a bill management Company for years 3 and 4 and internet through a Virgin Media student deal with one of them as the account holder as they perceived it to be  'cheaper' - BUT as a parent I was happier for them to have an inclusive option in that first non-halls year even though there was no visibility of how much energy was included. 

Whatever option pops up at the end of this thread, I would definitely encourage your son to record the gas/water/electricity meter readings every month - a photo on his phone will do.

PS - even though its a private rental, is this through an agent?

swimbikerun100

FreeBear said:

One question to ask - Is the gas/electric a domestic or commercial tariff ?

If the latter, the rates can be eye-wateringly expensive and are not subject to the OFGEM price cap.

I've checked the contract and it does not stipulate. I'll double check.

swimbikerun100

Gerry1 said:

swimbikerun100 said:

Would you say we have any case for them to increase the allowance given they state fair usage - as obviously it won't cover fair usage?

The 'generous allowance' isn't all it seems.  It's more a case of 'heads the students lose, tails the landlord wins'.  If the bills add up to less than the notional figure then the landlord trousers the difference, and if they are more then the landlord applies an unspecified surcharge.  And if the allowance is increased to a more realistic level, then no doubt the rent will be increased by the same amount, so be careful for what you wish.

If finding another property is unrealistic then it might be better to propose that the students manage and pay for their own utilities.  Usually each account has to be in the name of one person, so beware the risk that one or both the other students could 'forget' to pay part of their share especially if they drop out, reach the end of their final year or are returning overseas.

Also beware of commercial organisations that offer a 'split your bills' direct debit service.  They may prevent the 'bunking off' problem, but the rates are usually stratospheric even in normal times and there are often swingeing exit fees.

Sorry for all the gloom and doom, but forewarned is forearmed...

I appreciate your comments - many thanks.

swimbikerun100

Ant555 said:

MWT said:

Ant555 said:

Is the allowance £1490 per student?

No, for the property as a whole, as per the first post...

swimbikerun100 said:

The allowance for a 3 bed property with 3 tenants is £1490 total for all bills (water, energy, internet) for 52 weeks.

Yes, it just seemed quite cheap at £10/week per student for Gas/Leccy/Water and broadband even though many student properties are often unoccupied for much of July and August.  

I also wonder if this hasnt been updated despite then energy costs going through the roof.

My daughter had bills included for year 2 and then they did their own utility bills with a bill management Company for years 3 and 4 and internet through a Virgin Media student deal with one of them as the account holder as it all worked out 'cheaper' - BUT as a parent I was happier for them to have an inclusive option in that first non-halls year even though there was no visibility of how much energy was included. 

Whatever option pops up at the end of this thread, I would definitely encourage your son to record the gas/water/electricity meter readings every month - a photo on his phone will do.

PS - even though its a private rental, is this through an agent?

The students are there for 30 weeks per year. I don't know what it was last year so have no comparison. Honestly there was such a scramble for accommodation when they came out that if we had asked these questions then, the accommodation would have gone such is the demand up there this year. The property is a private rental but through a large agent in Durham. I've emailed them to ask if they are going to review their 'not very fair usage' policy and unsurprisingly have heard nothing back. Their website states Every house is available on a variety of bills inclusive rental packages with the aim of no bills, no budgeting, no bother!

MWT

swimbikerun100 said:

I've emailed them to ask if they are going to review their 'not very fair usage' policy and unsurprisingly have heard nothing back. Their website states Every house is available on a variety of bills inclusive rental packages with the aim of no bills, no budgeting, no bother!

Not sure why you think it isn't fair?

It may be open to uncertainty, but nobody is going to give students unlimited free energy, so there has to be a limit, and as already mentioned, the only way that £1490 allowance is going up is if the rent goes up.

The alternative is take a rental package without inclusive bills and feel the real cost directly...

QrizB

swimbikerun100 said:

Their website states Every house is available on a variety of bills inclusive rental packages with the aim of no bills, no budgeting, no bother!

With the way energy prices have gone recently, they (along with every other similar-sized household) are goijg to be spending far more than £1490 on utilities this year.

I'd be more concerned with checking what the contract says about how the excess is divided up. Is each student responsible for 1/3rd of the excess, or are they collectively liable so (if his friends skip out) your son could be liable for all of it?

Nagme

Property manager for a portfolio landlord here, we rent to students.  As other posters have said, best thing is to take regular readings or photos of the meters and submit them to the landlord. We have a few houses that are bills included, and we added a fair use policy, requested use of a smart meter, and a review every 6 months. We have offered this because it helps the students budget, it means that it isn’t left to one of them ( who, more often than not ends up dealing with all the house admin) and there’s less chance of a mess with the bills when they move out. We cannot profit from this, so are careful not to overcharge, but will keep it under review. We have found that students are very careful with their energy consumption!

Mstty

3 bedroom house has and electricity fully occupied all year round will circa £2000 from April 1st presuming standard variable tariff water must be £500 if all just taking showers and on a meter. Broadband minimum £240 up to £480.

So they should budget for £3000 at the worse scenario.

It is worth asking this company the tariff and rate for energy when they take up residence and record their usage on all meters.