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Everything you need to know about all-inclusive tenancies

Article Posted - 21st February 2019

Is there a demand for these types of tenancies?

Demand for such tenancies has increased in recent years. According to Landlord Today, all-inclusive bills are a high priority when choosing a place to live for over half (52 percent) of millennial movers, who make up 14 percent of all tenants in the UK.

What should you include?

What you choose to include is completely personal. An all-inclusive rent agreement can include rent, bills, council tax, wireless broadband, and TV licence, as well as a cleaner and gardener should you need to hire their services on a regular basis for the upkeep of the property.

Is there a way to control heating and gas should you wish to include them in the property?

We would not recommend anyone try and control heating and gas consumption in the property. Rather we would advise you to factor in consumption cost depending on the type of tenant you are renting to prior to the move in date. You should also factor in seasonal changes as tenants will use more over the winter months.

For instance, if you are renting a property to five university students, you may need to factor in a higher gas bill in the total rent as most students only have 8-12 hours of contact time (time spent in lectures, seminars and workshops) a week, meaning they will likely spend more time inside the property than a house of young professionals.

You should only question the heating and gas consumption if the bill is excessively high or if you have reason to suspect that the gas is being used for something other than cooking, heating, and hot water. You could also provide a cost limit in the tenancy agreement, with any additional costs passed on to the tenants.

For reference, according to UK Power, the average gas bill of a 1 to 2 bedroom house or flat is £33, a 3-4 bedroom is £48, and a 5+ bedroom is £66. If your property uses a prepayment meter, the cost will be substantially higher.

What about overuse of telephone / internet bills?

Most leading internet providers include unlimited internet usage as part of the monthly payment. We would recommend taking out a contract with a provider who offers this benefit to prevent your tenants racking up any additional costs.

Likewise, many landline companies offer unlimited anytime calls as part of the monthly payment. International calls are sometimes available for calling abroad as part of the monthly payment or as an extra add-on cost.

If your tenant is overusing the landline telephone at the property, e.g. by calling abroad without your permission, we would recommend directly contacting the tenant about this. If they intend to continue this practice, the additional cost should be factored into their rent. If they are not willing to pay, you can block international calls being made from your landline through your account with the provider.

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