Tag Archives: Utility Problems

18Oct 2012

Landlords Lose Money to Greedy Utility Companies

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By Craig Smith

A little while ago, Steve from our office blogged about some of the issues he was having with a certain utility company, namelyUtility Warehouse. Well it seems they are still trying to overcharge for energy used in rental properties!

Incorrect MeterReadings

The usual process for our office when a tenant moves in or out of a home is to inform the relevant companies, in writing, of the correct readings and forwarding address. The property in question was no different where after a brief empty period, new tenants moved in and the emails sent off to the utility companies. We would normally expect to get any final bills within a few weeks, arrange for the payment to be made and everything can be forgotten about until next time.

Well, the bill came through with estimated readings! This basically means that the energy supplier hasn’t taken any notice whatsoever of the readings we have taken and made up their own readings. Surprise, surprise! They are usually always over-estimated and this case was no different, which meant that we need to send the correct readings over… again!

Lack of Contact

This all happened in August (2 months ago) and since then we have had no contact fromUtility Warehouseregarding this account. Until today. A letter arrives through our door from a debt collection agency chasing the outstanding amount of just over £20! (Now, you might think that arguing over such a small amount is silly but you should only pay for the energy you have used!)

Needless to say that due to the lack of contact and the usually less than helpful nature of some of the debt chasing staff, we have made contact & told them what we think of the service!

Not the Only One!

It may sound like I am singling out a single supplier here but the truth is that this seems to arise with numerous companies and some are worse than others. Which begs the question, how many people (not people, not just Landlords!) are out there that have been scared by these tactics and ended up paying more than they should have done?

Deemed Rates

Another big money-earner is the type of tariff the account is put onto. When you are living in a property it is easier to research cheaper rates for your energy bills but something that a lot of Landlords forget when a property is empty. This is particularly important if a property is left unoccupied for a longer period of time. We have had instances in the past where no energy has been used at all but standing charges still apply.

The Solution

Unfortunately, there doesn’t seem to be any way of making dealing with some of these companies any easier and sometimes you just have to grit your teeth and get on with it. By always informing any changes in writing, it gives a good backup should accounts not be updated as they should be. For now, we shall carry on…

05Apr 2011

Landlord Advice: Keeping on Top of Utility Bills

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By Craig Smith

A lot of Landlords may not realise that, even if a property is unoccupied, they could still be liable for utility bills at a rental property. Usually, unless a property has been let with bills included, the Tenant would be responsible for payments. But what happens during the periods that a property is empty?

Ensuring the Accounts are set up Correctly

During an empty period, the utility accounts need to be set up in the name of the Landlord. It is important to take meter readings at the start and end of a tenancy to ensure that Tenants and Landlords don’t pay for each others energy used. A lot of companies will automatically send an estimated bill so regular meter readings should help to keep costs down. Most utility companies will be happy to send billing to another address, such as the Landlords home or letting agent address, which helps to prevent any debt letters coming through the post.

Debt Chasing and Court Action

If a bill gets missed, the utility companies usually send reminders and letters threatening court action, regardless of whether or not they intend to take you to court. (See Steve Roulstone’s Blog here for more information.) The best action is to act quickly to resolve any issues, the majority of cases are where the companies haven’t taken note of meter readings or start/end dates of a tenancy.

Choose Your Suppliers Wisely!

Landlord cannot force a Tenant to take a particular supplier for gas & electricity, although there is usually no choice for water and Council Tax! However, different suppliers charge different amounts for energy used. If a property is going to be empty for a period of time, it is always worth looking into the prices charged by different suppliers. Some suppliers will charge a standing charge, so even if no energy is used at a property a daily charge could still be payable!

Whenever a Tenant leaves a property, the Landlord should always aim to obtain the gas and electricity providers. If the Tenants don’t give the information, the suppliers can be found by contacting National Grid for gas and MPAS for electricity.

Water Supply

Some water companies will also make a standing charge even if no water is used. This is to cover costs of drainage and maintenance to the pipe supply. If the stop cock is turned off in a property, inform the supplier! Usually, if the supplier has been informed that the stop cock is turned off then the standing charges are normally cancelled (from our experience with Severn Trent).

Council Tax

A property can have an exemption from council tax payments if it unoccupied & unfurnished, usually for up to 6 months in each financial year. After this, a 50% rate is applied and will become payable, although after 6 months you would certainly hope that the property has been relet!