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  • HMO & Multi-Lets

    Seeking recommended AST clause for controlling HMO electricity usage

    Hi,

    I understand that some multilet/HMO landlords control excessive use of electricity by setting a limit on the electricity portion of bills included in the rent. Does anyone have an AST contract clause they could recommend/forward for controlling electricity usage in this way? i.e. bills are included but up to a specified amount for electricity, and above that the tenants (collectively) pay. And also, how would you charge for that if the tenants go above -- invoice separately, add to direct debit, or something else?

    Many thanks

    Guy
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    Guy Brown
    Blue Infinity Property Group
    M 07791-661491 | T 0118 3360366 | E guy@blueinfinityproperty.com<script data-cfhash='f9e31' type="text/javascript">/* http://www.blueinfinityproperty.com

    * New build residential developments and flat conversions in the Home Counties
    * High end HMOs in Reading and Bracknell

    You'll find an AST for bills included on https://www.landlordlaw.co.uk. The contract allows you to set an amount for bills stating that over this then the landlord can ask for additional payment if the bills exceed it.
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    Sandra Savage-Fisher

    Thanks Sandra, I had a look on Landlordlaw and it appears I need to take out a membership to access whole ASTs on there. I have a couple of ASTs I am using already and accordingly would rather insert into/modify a suitable clause in one of those in the event other forum users have a suitable clause they use already.

    That said, the site's ‘Tips for Landlords’ page (https://www.landlordlaw.co.uk/landlords/t...greements) includes two bits of particular relevance:
    1] "The agreement should state clearly which payments (such as water rates, council tax and utilities) should be made by the tenant and which by the landlord. If any are payable by the landlord, provision should be made to increase the rent if these payments are increased, so the landlord is not out of pocket."
    2] "Do not try to amend an agreement yourself without taking legal advice. You may find that the clause you have amended has actually been invalidated becuase you have not taken into account the requirements of the regulations."

    So I think I'll also seek out regulations for any particular guidance relating to HMO bills, and how bills above an agreed figure can be recouped.

    Thanks again,

    Guy
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    Guy Brown
    Blue Infinity Property Group
    M 07791-661491 | T 0118 3360366 | E guy@blueinfinityproperty.com<script data-cfhash='f9e31' type="text/javascript">/* http://www.blueinfinityproperty.com

    * New build residential developments and flat conversions in the Home Counties
    * High end HMOs in Reading and Bracknell

    The regulations Tessa is referring to are the Unfair Terms in Consumer Contract Regulations. Her memberships are well priced. If you are trying to find such a clause for free then I think you will find it difficult as it is quite a specialist piece of drafting.
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    David Smith
    Landlord & Tenant Solicitor
    Anthony Gold Solicitors

    Find me on LinkedIn: uk.linkedin.com/in/dsnsmith

    All opinions are my own and do not reflect those of my firm. No comment made should be taken as legal advice and you should consult a solicitor or other legal professional for advice on your specific situation.
    Originally we used other AST's but when I stumbled upon Landlordlaw a few years ago I was really impressed. Yes we pay a subscription but the information and documentation available to a member is so worth the membership fee. Plus if there are changes in the regulations then Tessa updates the documents at no extra cost to the member.
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    Sandra Savage-Fisher

    Thank you Sandra and David. We have a very loyal membership.

    I have a special tenancy agreement where the landlord pays the bills which I drafted up a few years ago at the request of one of our members, and which I wrote about on the blog here: https://www.landlordlawblog.co.uk/2014/01...the-bills/

    Note also that if any members have a query about the tenancies or want a specific clause drafted up, I will answer this and (usually) draft it up for them in the members discussion forum at no extra charge - this is one of the other membership benefits. Although the agreements are pretty comprehensive.
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    Tessa Shepperon Landlord Law | Landlord Law Blog |