How to manage end of tenancy utility bills

As a tenancy draws to an end, there are various details that you, as a landlord, should manage, from inspecting the property to settling final bills. One crucial aspect often overlooked is managing end of tenancy utility bills. 

Ensuring that all utilities are handled correctly not only protects you financially but also helps maintain a positive relationship with tenants who are leaving. Here, we will walk you through best practices for handling end-of-tenancy utility bills so that you have the confidence to manage your the ending of tenancy agreements effectively. 

Are landlords responsible for unpaid utility bills?

The main rule of thumb is that if a utility bill has the tenant’s name on it, it is their responsibility to make sure it’s paid. It is particularly their responsibility when it comes to gas, electricity, water, and council tax. 

When tenants move in, it’s standard to establish them as billpayers, which includes transferring accounts for all utilities into their names. However, at the end of a tenancy, ensuring that the final bills are properly managed can save time, prevent disputes, and avoid unexpected charges.

There are, however, some cases where the responsibility falls to you as the landlord to make sure the end of tenancy utility bills are paid for. 

Conducting a final metre reading

A final metre reading is one of the most important steps when a tenancy ends. This reading allows for accurate billing based on usage up to the tenant’s departure date, avoiding any charges beyond the tenancy term.

Steps for final metre readings

Let’s take a look at the different steps to take when you need final metre readings to be taken once your tenancy agreement has ended. 

• Coordinate with tenants: The first step to take is to inform tenants of their responsibility to take final readings. Ideally, do this on the day they vacate the property so that you get an accurate reading to avoid having to pay extra.  
• Record metre readings yourself: It’s also an option for you to take a metre reading to ensure accuracy and prevent disputes with your tenants. 
• Photographic evidence: Take a photo of each metre reading as evidence, particularly for gas and electricity, to support the accuracy of the final bill if there are any discrepancies between the two readings. 

Encourage your tenants to share their final readings with the utility providers and confirm the account closure with them. 

Transferring accounts or closing accounts

It’s best that your tenants close their accounts with the utility providers after they settle the final bills. But, as a landlord, you’ll need to plan for the period between tenancies to keep utilities active without acquiring unnecessary costs.

There are also options for tenants to switch their accounts to landlord accounts which automatically activate when tenants close their accounts. This is useful for covering smaller gaps between tenancies because you’ll be charged only for the periods when the property is vacant. 

If a landlord account isn’t an option, notify the utility providers of the gap in tenancy, and set up temporary accounts in your name to avoid disconnection. Switching utilities to a landlord account ensures minimal hassle and keeps the property ready for new tenants.

Council tax management

Council tax is another important consideration at the end of a tenancy. Council tax responsibilities will automatically shift to you, as the landlord, during any vacant periods. Let’s take a look at the steps to take at the end of a tenancy agreement to sort out the council tax: 

• Inform the council: Notify the local council of the end of the tenancy, providing them with the move-out date and tenant details.
• Temporary exemptions: Some councils offer exemptions or discounts for vacant properties, so check if you’re eligible to reduce costs while the property is unoccupied.
• New tenancy notification: When new tenants move in, promptly inform the council to transfer the council tax responsibility back to them.

Ensuring that you properly sort out your council tax will prevent any future problems or miscommunications. 

Encouraging tenants to settle end of tenancy utility bills

An essential part of closing out a tenancy is ensuring the tenant settles all end of tenancy utility bills before moving out. Unpaid bills can sometimes end up affecting the property or the landlord, so it’s best to be proactive when it comes to this. 

Ways to encourage final payments

You may find that you struggle to get any end of tenancy utility bills paid by your tenants, so we have put together a few points on how to encourage these to be paid as soon as possible. 

• Reminder in the move-out checklist: Include a reminder about utility bill settlement in the final checklist or letter you send to tenants before they leave.
• Proof of payment: Request proof that bills have been settled. Some landlords ask for proof of payment or a final bill receipt before returning the security deposit.
• Communicate consequences: Politely remind tenants that unpaid bills could lead to delays in returning their deposit.

By being proactive, you’ll reduce the likelihood of having end of tenancy utility bills missed by your tenants.

Preparing utilities for new tenants

Once the property is ready for new tenants, it’s time to transfer utilities again. Having a clear process in place will make this transition smooth for both you and your new tenants. Here’s how you can do this: 

• Initial metre readings: Take metre readings again before new tenants move in, setting a clear starting point for their billing.
• Account transfers: Provide incoming tenants with contact details for each utility provider and encourage them to set up accounts promptly.
• Welcome information pack: A welcome pack that includes instructions on how to set up utilities is a helpful touch. It can include details on providers, account numbers, and helpful tips.

Ensuring a seamless utility handover enhances the tenant experience and provides clarity on their responsibilities from day one.

Managing end-of-tenancy utility bills might seem like a small task, but it’s an important one that can protect both landlords and tenants from unexpected expenses or disputes. By conducting final metre readings, transferring accounts appropriately, and encouraging tenants to settle outstanding bills, landlords can ensure a smooth transition between tenants.

If you’re on the lookout for the best landlord insurance quotes, make sure that you contact CIA Landlords to speak to one of our experts on 01788 818 670. With us, you’ll find the best landlord insurance quotes for your needs.