Lodger Licence Fee Increase - Your Opinion Requested

Ryan_Holden

Hi All

I took onboard a lodger in August 2022 for my spare room with a £500 pcm licence fee. He is 23, worked as a truck driver and was out typically 05:00 - 15:00 each day.

He had his contract terminated in February because of his conduct (HGV driver caught using phone while driving) and has been in the house almost all day every day since.

He is applying for various new jobs, albeit outside of his trade, including train driving and prison guarding. 

He is a big video gamer and tech fan with a lot of electrical kit in his room including a very high end gaming PC that produces a lot of heat and on which he spends his life, multiple monitors and smart devices. 

In the period he has been home the electricity usage has risen by approximately 100 kWh (a cost of approximately £45). There has also been a marked increase in water usage (I am trying not to actively monitor usage because it feels over the top but it is impossible to not notice the toilet flushing upwards of 8-10 times per day) leading to Anglian to adjust the DD from £28 to £44. 

We have lost the EBSS of £67 pcm (as everyone), £16 pcm water, £9 pcm council tax, the cost of household supplies (to which he doesn't contribute but aren't included in his agreement).

And on top of that he has a portable air conditioning unit stored in my other spare room that is likely to be put to use soon with his PCs heat and the warmer weather.

I am considering putting his licence fee up but would like to get opinions from other people as to whether or not people think it is reasonable. He has not had an increase since he arrived and signed for 6 months.

If I raised his rent to £535 it would still be below similar accommodation in my area and represent a rise of 7%.

Your opinions are much welcomed.

dimbo61

So how is he paying you each week/month ?
He is now unemployed ? 
On benefits ?
Check on " spareroom " how much a room costs in your area.
Sit him down and explain why your Going to increase the Rent due to his change in circumstances 
If your not happy maybe time to ask him to leave 

Murphybear

I think that asking for an extra £35 is very generous on your part.  It sounds like he is using a lot more extra power/water than that.  I will probably regret mentioning  this but flushing the loo 8/10 times a day seems a lot.    I have a slight waterworks issue but don’t flush half that amount 

HGV drivers are in short supply in many parts of the country but if he needs a reference from his recent firm that could be a problem.  

FreeBear

Murphybear said: I think that asking for an extra £35 is very generous on your part.  It sounds like he is using a lot more extra power/water than that.

100KWh per month is about £32 extra on the electricity bill - When he starts to use the air conditioner, that will increase a lot, and I doubt that £35 will cover it.

Neighbour runs an aircon unit during the summer months - Their electricity consumption is in the order of 10,000KWh for the year.

Edit to add - One of the terms in my lodger's agreement is a clause about excessive use of energy & water - This allows me to charge for anything above what I consider reasonable usage. Not that I have had reason to invoke that clause..

Ryan_Holden

Thanks for all your replies. The perspectives are meaningful and helping me form an opinion.

dimbo, he pays me a flat fee monthly that includes his bills. I use his money to cover bills and the rest contributes to my mortgage. I checked Spareroom regularly as that's how I get my lodgers and £535 would still actually be mid to low for the area.

Murphybear, thank you. What I don't want him to feel like is my bills have gone up so I expect him to just foot them entirely. I'm trying to find a middle ground so if it seems a bit generous, that only makes me actually feel better.

Freebear, we are an E7 house and he doesn't generally game in the E7 night tariff meaning he uses that 100 kWh in the 44p/kWh time. But the AC is a serious worry for me. 10,000 kWh for the year is terrifying, I mean, that is vast. I wouldnt be able to accept that at all.

To be clear, the AC hasn't been used yet. This additional 100 kWh just comes from him being home and gaming all the time with this gaming rig.

He has a lodger agreement in place but that makes no reference to "fair use" of energy or water, so I think I will write a new clause in that's similar. Though I'm not sure how to write that or what "fair use" would be. Freebear, could I ask to see your clause? That said, his energy use in that one double room appears to be 50% of the entire household (American fridge freezer, additional freezer, oven, lizard with basking lamps) so surely he's a bit over whatever fair would be.

We are 2 people in a 3 bed detached and there's no reason we should be using more energy than the typical home. According to the latest Anglian water statement we are using the same amount of water as a family of 4 in the same house.

FreeBear

Ryan_Holden said: To be clear, the AC hasn't been used yet. This additional 100 kWh just comes from him being home and gaming all the time with this gaming rig.

He has a lodger agreement in place but that makes no reference to "fair use" of energy or water, so I think I will write a new clause in that's similar. Though I'm not sure how to write that or what "fair use" would be. Freebear, could I ask to see your clause? That said, his energy use in that one double room appears to be 50% of the entire household (American fridge freezer, additional freezer, oven, lizard with basking lamps) so surely he's a bit over whatever fair would be.

An american F/F plus a second freezer and a heated vivarium will be using quite a bit of electricity before you even consider a gaming computer. My current lodger has her own (under counter) fridge/freezer and cooks her own meals in an evening when I'm not around. She is currently unemployed, so in most of the time.. Heating schedule is set to suit both our needs, and electricity consumption is about 25KWh per month above what I would use on my own. The clause in the contract is quite simple -

4.2 To pay the full cost of all telephone calls made by the Licensee during the licence along with any gas or electricity usage that is deemed excessive.

The "deemed excessive" usage is very much subject to opinion, but I can compare current usage against previous bills (with and without lodgers) and come up with a number. 25KWh is reasonable in my opinion (cooking, electric shower, etc). If it were to get north of 50KWh per month, I'd be discussing usage and looking at ways of cutting back.

Sarahspangles

It sounds like he’s reverted to ‘teenage layabout’ from ‘employed lodger’, and you’re NOT his mum.

Ryan_Holden

Thanks Freebear for sharing that clause, I appreciate it.

All those appliances I listed are mine and shared so I am already well aware of their usage. Typically on my own the house is about 200-220 kWH a month. When he moved in that increased to 240 and has steadily risen to about 270 kWh over the last year, per month. I've happily accepted that because he must be allowed to live, but this last month when he's home that's jumped to 370 kWh, which is almost double what the entire house uses including all those appliances.

And this is pre-AC.

I will give some serious thought to writing a clause like that in his agreement. Everything has gone up and I think I'm still sheltering him from the lions share of raises.

Sarahspangles, ha, yes that is very much what it feels like. Having to tell him to not leave lights on or taps running, or to take things for the bathroom upstairs that are on the stairs is very much like having a teenager. Though I would never refer to him that way out of respect.

stuhse

dimbo61 said:

Sit him down and explain why your Going to increase the Rent due to his change in circumstances 

If you say you are putting the rent up due to his change in circumstances he might want a reduction again if he subsequently gets a job.  He is looking for a job so hopefully will get one soon ? Seems likely the status quo will return ?

You say he came in August 22, one year would be the natural time for a rent review my suggestion,  Let him know if he is still in the house all day in August 23 then  his annual rent review will take into account additional use of energy , etc. As well as the normal inflationary rise.  This may help focus his mind.   In the meantime you are still making a substantial profit every month ?

propertyrental

Is the lodger agreement for a fixed term? Unusual, but if so, what are the start and end dates.

If like most such agreements it is simply a rolling agreement (ideally weekly but sounds like monthly if he pays monthly), you don't need a special clause about fair usage etc. You can increase the rent at the start of the next rolling period.

Obviously it is wise to have a conversation to explain, be it based on average rents in the area, increased electricity rates, or, as here, his increased usage.

But the bottom line is that you can increase the rent, and he can pay it or serve notice and leave. Or you can serve notice and evict.

Of course, if you've given him a fixed term agreement tlll, say, August, at £X pm, then you can't either increase the rent or evict him till the, unless there's some Break Clause or similar in the contract, but that would have ben a foolhardy contract to put in place....

steve866

The increase seems more than fair. If you are feeling uncomfortable you could suggest that the increase comes in once he finds employment