Bills included: convenient, popular and easy to draft badly
Bills-included tenancies rent faster, particularly rooms and student lets, and they concentrate a risk on the landlord: unlimited usage at a fixed price. Drafting is what keeps the arrangement fair in both directions.
What to include and how to price it
Typical bundles cover energy, water, broadband and council tax where the landlord is liable, priced on realistic consumption plus a margin for price movement. In HMOs the landlord usually holds all accounts anyway, which is why by-the-room lets are bills-included by default.
Fair usage clauses
The standard protection: a clause setting a reasonable usage allowance with excess recharged at cost, transparent and evidenced by bills. Two rules keep it lawful and workable: the allowance must be genuinely reasonable for the household, and recharges must reflect actual cost, because the resale of utilities rules cap what a landlord can charge for energy at what it cost, plus permitted standing charges. Profit margins hide in the rent, never in the meter.
Practicalities
- Keep accounts in the landlord's name where bills are included: liability follows the account.
- Smart meters and periodic statements to tenants prevent the January argument.
- State what happens on price shocks: fixed price is fixed unless the agreement says otherwise, which is exactly what a Section 13 increase at the next anniversary is for.
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Start my agreement →Frequently asked questions
Can a landlord profit on recharged bills?
Not on energy: resale rules cap recharges at cost plus permitted standing charges. Pricing for the service belongs in the rent, not a marked-up meter reading.
Can a landlord cap usage in a bills-included let?
Yes, through a clear fair usage clause with excess recharged at evidenced cost. Unreasonably low caps that make the headline price misleading invite disputes and worse.