A guide to transferring utilities to tenants

Whether you are an experienced landlord or new to the game, having a good understanding of what’s involved when transferring utilities to tenants can help you streamline your operations and foster a more transparent and mutually beneficial rental relationship.

If you offer a bills-inclusive arrangement to your tenants, transferring utilities to tenants is not something you’ll have to think about. You remain in control of all utilities. However, if your tenants are responsible for their own utility bills, there will always be a period of transition between tenants old and new.

In this guide, we’ll explain how to navigate this transition period in the most efficient way.

Which utilities typically need to be transferred?

Firstly, let’s outline which utilities need to be on your radar when transferring between tenancies:

• Water
• Gas & electricity
• Council tax
• Telecommunication services such as broadband and a landline
• TV services and subscriptions such as Sky.

How to transfer a water bill to tenants

So, how do you transfer a water bill to a tenant, for instance? It works in the same way as transferring most utility bills. Let your local water supplier know that you intend to transfer the water bill from your name to your tenant’s name. They’ll let you know the actions that they need you or your tenant to take and provide any necessary forms or documentation.

Then you can notify your tenant and let them know the process. Provide them with details on how to set up a new account with the water provider and ensure the transfer aligns with their move-in date to prevent any billing overlap or service interruptions.

After all documents are completed and submitted, follow up with the water provider and your tenant to confirm that the transfer is complete and that the billing is now under the tenant’s name. This is a really important step – never assume that everything is in hand!

How to transfer a gas bill to tenants

In much the same way as you’d transfer a water bill to a tenant, start by reaching out to your gas provider to inform them of your intent to transfer the account to your tenant. They may require a final meter reading and additional documentation. If so, take that final meter reading before the tenant moves in, in order to establish a clear starting point for the new tenant’s gas usage, protecting both parties from billing discrepancies.

Inform your tenant about the transfer process and any steps they need to take. Provide them with any relevant forms or documentation. Coordinate the transfer to coincide with the tenant’s move-in date and remember to follow up with your tenant and the gas provider to ensure that everything is in hand.

You can follow the same process for transferring electricity bills.

Transferring council tax

The process of transferring council tax is a little different as it’s managed by your local council. It is, however, pretty straightforward.

Simply contact your local council to inform them of the change in occupancy, providing details of the previous tenant’s move-out date and the new tenant’s move-in date so that the council can update their records and issue the correct bill.

In most cases, the new tenant needs to register for council tax in their name, so direct them to the council’s website where they can complete the registration process.

Transferring telecommunication & TV services

Transferring telecommunication and TV services can be a bit tricky, due to existing contracts and equipment management. Step one is to reach out to current providers to inquire about transferring or terminating the existing contracts. Some providers may allow a direct transfer of the account to the tenant, while others might require a new contract to be set up.

Coordinate with your tenant to establish an effective date that aligns with their move-in. This helps avoid any gaps or overlaps in service. Also, check if any equipment such as routers, set-up boxes or smart TVs are included in the service. Will these remain as part of the rental property? Or does the tenant need to provide their own?

Complete any required forms or documentation as directed by the provider and ensure that both you and the tenant receive written confirmation that the transfer or new setup has been finalised.

Legal considerations when transferring utilities to tenants

So, let’s get a few things straight. Even though you may choose not to be responsible for paying utilities for your tenants, you are responsible for providing and maintaining access to the essential utility services that we have outlined in this guide. You must ensure that water, gas and electricity connections are safe and operational, even if it’s solely the tenant responsible for paying the bills associated with their usage.

Whatever your approach, make sure that your tenancy agreement explicitly outlines who is responsible for what when it comes to utility bills. You can utilise your tenancy agreement to detail the process for transferring accounts, including final meter readings and effective transfer dates. It’s also sensible to provide a clear dispute resolution process if billing disagreements should arise at any point.

For more guidance, check out our article on how to write a tenancy agreement.

What can go wrong?

In most cases, transferring utilities to tenants will be simple and straightforward. However, of course, things can go wrong that might disrupt the smooth transition of services.

Transfer delays

Delays can happen when transferring utilities that can’t be helped or controlled by you or your tenant. Delays can result in overlapping bills, confusion over who is responsible for payments and perhaps even temporary service interruptions.

If you find yourself in this position, be proactive in communicating with both your tenant and the utility service provider. It’s a good idea to keep a record of all communications, including emails and call logs, to reference in case of a dispute.

Billing discrepancies

Sometimes, errors can occur during the final meter reading or during the handover process. This can lead to inaccurate billing such as double billing or incorrect charges.

Take a final meter reading at the time of transfer and share this with both the tenant and the provider. Make sure that you cross-check bills, comparing the final bill from your account with the first bill issued to the tenant. If you do find discrepancies, contact the service provider immediately to request a review and correction of the bill.

Misunderstandings and miscommunication

When handing over responsibility for utilities to tenants, miscommunication can be common – particularly around responsibility. It’s really important to provide your tenant with a detailed outline of the process and what’s expected of them.

Remember, they’ve probably got a lot on their plate moving into your property. Transferring utilities is another item on a long to-do list. Cut them some slack and do what you can to help. Keep everyone involved informed of the progress and any changes during the transfer process and make sure that everything is clear in that all-important tenancy agreement.

Transferring utilities to tenants is truly an admin job that everyone could do without! But it’s really important to complete it properly and within the correct time frame.

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Get a quote today or give us a call on 01788 818 670 to speak to one of our friendly advisors.