Bills, meters and who pays what in a tenancy

These are listed in the order worth acting on, which with bills in a tenancy is not the order they are usually presented in.

Establish the split before signing

The tenancy agreement should state which utilities and charges the tenant pays and which remain with the landlord, and it should be specific. Common splits leave the tenant paying energy, water and communications while the landlord pays any service charge and building insurance.

Responsibility for local property taxes differs by country and sometimes by the type of let, so check what applies rather than assuming. Where a property is a room in a shared house, the arrangement is often different again and may be all-inclusive by default. Ambiguity here is expensive, because an unpaid account in your name follows you regardless of what you believed the arrangement to be.

Meters and the record that protects you

Photograph every meter on the day you move in, with the serial number visible, and send the readings to each supplier immediately. Do exactly the same on the day you leave, because the closing reading is what stops you paying for the next occupant. Find out where the meters are during the viewing, since a meter in a locked communal cupboard is an ongoing practical problem.

Where a prepayment meter is installed, ask whether it can be changed and who bears the cost, as the rate is often less favourable. If the account has been estimated for a long period, expect a correction when a real reading is finally submitted.

Getting the account into the right name

Contact each supplier at the start of the tenancy and put the account in your name from the exact date the tenancy began. Doing this immediately prevents inheriting a debt from a previous occupant or being billed after you have left.

You are generally free to change energy supplier where the account is in your name, though the agreement may require you to restore the original arrangement at the end. For water, the arrangement depends on the local system and in some places the account cannot be switched at all. Keep confirmation of every account opening and closing, since these are the documents that resolve a dispute months later.

All-inclusive rents

An inclusive rent is convenient and shifts the risk of a cold winter or a price rise to the landlord, who prices that risk in. Many inclusive arrangements contain a fair usage cap, and exceeding it produces an unexpected charge that the tenant did not budget for.

Ask what the cap is, how usage is measured and what happens if the property turns out to be more expensive to heat than expected. Inclusive rents are common in shared houses and short lets, where splitting bills between changing occupants is genuinely difficult. Compare the inclusive figure against a realistic estimate of separate bills before assuming it is the cheaper option.

Sharing bills with other tenants

Where several tenants share an account, everybody named on it is normally liable for the whole balance rather than a share. That means one housemate leaving without paying creates a problem for the people whose names remain on the account.

On an ordinary week, agree in writing how bills are split and who holds the account, and use a shared record so the arithmetic is visible. Bill-splitting services exist and charge for the convenience, which can be worth it in a house with frequent changes of occupant. When somebody moves out, take readings that day and update the account, because a clean handover prevents most of these arguments.

Efficiency and what you can change

Tenants can rarely make structural improvements, but draught proofing, curtains, radiator management and heating schedules all reduce consumption measurably. The energy performance certificate for the property gives an indication of how expensive it is likely to be to heat. Several jurisdictions set a minimum efficiency standard for let property, so a very poor rating may indicate a compliance issue worth asking about.

The useful part is this: report heating faults, draughts and damp promptly in writing, since a failing system costs you money every week it is not fixed. Ask the landlord about improvements at renewal, because a better heated property is easier to let and the argument is not one-sided.

Everything above, in order of what to do first

1. Establish the split before signing. The tenancy agreement should state which utilities and charges the tenant pays and which remain with the landlord, and it should be specific.
2. Meters and the record that protects you. Photograph every meter on the day you move in, with the serial number visible, and send the readings to each supplier immediately.
3. Getting the account into the right name. Contact each supplier at the start of the tenancy and put the account in your name from the exact date the tenancy began.
4. All-inclusive rents. An inclusive rent is convenient and shifts the risk of a cold winter or a price rise to the landlord, who prices that risk in.
5. Sharing bills with other tenants. Where several tenants share an account, everybody named on it is normally liable for the whole balance rather than a share.
6. Efficiency and what you can change. Tenants can rarely make structural improvements, but draught proofing, curtains, radiator management and heating schedules all reduce consumption measurably.

The takeaway

Photograph the meters on both days, put the accounts in the right name immediately, and read the clause that says who pays what.

Small and repeatable beats ambitious and abandoned, almost every time.