Like most Landlords out there, we noticed increases in our utility bills during lockdown, as tenants were forced to stay at home. It’s not rocket science; it was expected, and it wasn’t anyone’s fault (except maybe the Coronavirus!)
We also noticed that some houses struggled with their Broadband, where there had not been an issue previously. Again, not rocket science – tenants working from home, with zoom and digital meetings being the “new norm”. So, we upgraded where needed and this seemed to sort the problem.
Most recently, the cost of utilities has been forefront of everyone’s mind, as several Utility Companies have gone out of business and some experts have warned of a shortage of supply (particularly of gas) post Brexit.
So, lets talk about Fair Usage Policies for tenants. This is a subject which divides a lot of Landlords. We use them, we always have, and they form part of every contract we issue.
The reason a lot of Landlords don’t like them is because they feel that they are difficult to manage and enforce and can lead to disagreements.
Our experience is the opposite. Our policies are generous, we discuss them with our Tenants, they are in the contract (which the tenant receives a copy of pre-viewing) and we ask our households for copy meter reads every month.
In this way, the tenants know what they are, why they are there and what is expected of them. We rarely walk into a house which feels like a “hot house” and, other than during lockdown, we have not seen utility bills rise in any meaningful way. If we did, we’d communicate with the tenants to see whether we could find the source of the problem and highlight to them that this was happening, have a conversation about it and remind them of the fair usage policy that formed part of the contract that they signed.
We are big believers in treating our tenants like the adults they are and in communicating with them in a timely fashion and with respect. It helps that our tenant selection process has been honed over many years and is multi faceted. We see the viewings process as part art and part science and every member of staff is on the same page – we all take it very seriously, as if you get this part of the puzzle right, most things follow quite smoothly!
We can obviously only speak for our experience but, we have been adopting this method for a good few years now and it has been working well. The three staged process of (1) telling someone you are going to do something (in this case that the fair usage policy will form part of the contract) (2) doing it (putting it in the contract) and then (3) drawing their attention to it (“…you remember that fair usage policy we talked about? Well, here it is in the contract, like we said look…”) has worked really well for us over the years, in all aspects of tenant management (not just the fair usage policy) – based on transparency and everyone understanding where they stand, with no nasty surprises or future misunderstandings.
Take the time to get your tenant selection right and use the viewing process to get to know the tenant applicant. Explain the fair usage policy, that its not designed to “catch them out” but to be fair to everyone; ask them if they have any questions about it and discuss it openly. Advise them that it will form part of the contract that they will sign, if they are a successful applicant. This has always worked well for us and sits well with our ethos of treating people with respect and, inviting them to reciprocate.
If you have any questions about HMOs, Compliance, Regulations, Inspections or we can help in any way, then give us a call on 0117 440 6789 or email us here
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