Hands on HMOs – Don’t Shoot the Messenger #2

Yet another good point, Ben and one I was discussing just a few hours ago with a new HMO landlord. He was shocked when I recommended putting boilers and controls in lockable cupboards thinking that his new tenants would all be fair when using the utilities. If you're not the bill payer, you abuse it. Do you remember that, as teenagers, we'd spend hours on the phone to our mates (girls did anyway) and your parents would scream when the phone bill arrived 3 months later? It's the same with gas, electric and tenants.

In my experience people from colder climes like to keep the house at a reasonable temperature, whereas those from the southern hemisphere like to keep the house at a toasty 30 degrees 24 hours a day. And if it gets too hot? They don't turn down the thermostat, they just open all the windows. It's also for the tenants' own safety that they don't mess around with boilers and their controls. The only people who look at boilers should be the plumber and landlord so locking in a cupboard is the best policy.

Boilers are timed just as mine are at home and in line with the Environmental Health guideline. If anyone's feeling chilly outside these hours they can (a) go to the library or other community facility (b) put on an exercise DVD until the heating comes on or (c) talk to me and we'll find a compromise. Heating goes on 6am-9am, 12-1pm and 4pm-11pm - not unreasonable methinks. If you're worried about HMO electricity usage read this: http://hmolandlady.wordpress.com/2011/09/23/hmo-tenants-really-are-greener-heres-the-proof/

Yeah I've known landlords, housemates and tenants come to blows over the heat issue. And you are right about southern climes. My missus Frazzy, being from Barbados, nearly kills me with the heat and I love cold snowy days. Norway would be my preferred clime.

Not sure about your library solution though haha. But you see individual room meters would take all the arguments out of it and teach the tenants a bit about budgeting and reposnibility

Thank you Ben I will pass on this very helpful information to all the HMO landlords that I know.

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Just a small matter but worth mentioning - Energy Performance Certificates are not legally required for HMOs. Save your money.
EPC Choice

I refuse to use key meters because I think they are a rip-off and it's unfair to tenants: we are not living in the dark ages of coins in meters. However I've always resisted offering "bills inclusive" rents because of the fear that the tenants then run the heating full blast and I'll be left covering the cost. However I recognise tenants like bills inclusive because they are often relatively young and inexperienced and it helps them to budget: they know exactly how much is going out each month on their housing costs, so they can spend and save the remainder with confidence.

In my view the way round the excessive-useage issue is to set a stop-loss on the bills. Tell the tenants the rent level, so they can see it's a market rent, then add a fixed sum per month to cover council tax, gas, water, electricity and TV license, again showing them your figures so they agree they are fair. Crucially, you need then to include a clause in the contract that says if the utility billls work out more than the amount you've budgeted for in your fixed sum, they must pay their share of the difference, deducted from their deposit if necessary. Also, if you run a houseshare, they have to agree to settle up the bills to date if someone moves out and is replaced, so the bills are set to zero.

For the sake of fairness I also say that if the bills come in under the amount budgeted, the tenants get a refund. This provides some incentive to keep costs down.

I don't think you'll ever solve the issue of disputes over heating. Mobiles have largely solved the problem of disputes over phone bills, but if it's not heating, people will always find something to fall out about, especially cleaning.

My solution does involve more work for the landlord, in that you have to administer the bills, but I think it's a price worth paying to support tenant happiness.

Good to hear Tony. You are right that is some ways it takes more effort but it does save other effort elswhere.

I love your idea about transparency over charges too. One of the most common things I hear said about landlords is that they are greedy and money grabbing. You and I know that often landlords are struggling and are only 1 missing tenant's payments away from mortgage arrears. In showing where their money goes it can go some way towards challenging that commonly held misperception.

I think that is a good idea that I will recommend to others, a rent book with an itemised bill.

My preferred tactic in a complaint of harassment or threats to illegaly evict is to get the landlord and tenant together, either in the property or my office and just getting them chatting to each other. Break down the imposed walls that both parties end up hiding behind, lobbing grenades over the wall at each other. I find both sides often soften up a bit when they have another human in front of them, and I often encourage the landlrod to talk to the tenant about what they have to shell out for.

It didnt work the other day though when the landlord arrived at the property for one of my mediation session in a black Bentley and a personalised number plate haha. Tip....if this is you, borrow another car when visiting tenants!

We have found that by giving groups key meters they let them go into the red and run out of energy when they are skint, especially over Christmas or holidays. Then the boilers need firing up (often a call out) and you end up with condensation / black mould during cold and wet winters. This becomes a redecorating cost and a possible issue in the last month when the tenant wants to exit early and blames the environment on their 'breathing problems' ... pay the bills, it's easier and may be cheaper in the long run!