Is it fair to split bills with my lodgers?

Is it fair to split bills with my lodgers?

0:01 AM, 9th September 2024, About a month ago 6

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Hi, I am a homeowner, and recently, I had surgery that has made it difficult for me to keep up with my payments. On someone’s advice, I decided to take in two lodgers. They are now living with me, and I’ve been advised to ask them to sign a fair usage policy.

My plan is to set a fixed amount of £700 for gas, electricity, and water. If the total bills exceed this amount, I propose that we split the excess equally among the three of us (myself and the two lodgers).

Is this arrangement legal and fair?

Any advice would be appreciated.

Thanks,

Taz


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Tessa Shepperson

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10:37 AM, 9th September 2024, About a month ago

It's really what you agree with your lodgers. As you are not a trader your agreement will not be subject to the Unfair Terms rules.

Make sure all arrangements are set out in a proper written agreement.

You may want to take a look at my free Lodger Landlord site which has guidance and links to where you can purchase forms: http://www.lodgerlandlord.co.uk/

DPT

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10:50 AM, 9th September 2024, About a month ago

The Tenant Fees Act applies to lodger lets as well as tenancies, so you need to take some care over what you charge, although utilities are allowed, (not Council Tax though).

I would suggest that your fair usage policy should be based on units of gas and electricity for an average household of 3 adults if you really want it to be fair. Prices are still in a state of flux and the lodgers could exceed the cap inadvertently after the costs rise in October.

DAMIEN RAFFERTY

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11:14 AM, 9th September 2024, About a month ago

You can earn upto £7500.tax free each year from having a Lodger.
Depending on where you live and local rents plus the bedrooms/ bathrooms/ensuite you have available you should decide what to charge as rent.
Council Tax will be 100% and not the 75% your paying now.
Have a look on spareroom to get an idea of local rents
Put in your contract No portable heaters or fridges
Charge a Rent that covers the bills
Join NRLA and use there contract and other documents.
You need to do Right to Rent checks

Karl

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17:53 PM, 9th September 2024, About a month ago

In order to save themselves money, be prepared for your tenants asking you to;

1) turn the heating off
2) have shorter showers

etc..etc

This could back fire to mean you cant do in your own house what you want without being accused of being excesive & wasting their money.

Jim K

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13:24 PM, 10th September 2024, About a month ago

If you are exceeding the 'Room to Rent' scheme allowance then possibly.
If below it you would be in breach of the scheme rules and therefore liable to tax.
20% on circa £7000.
You need yo do the sums.

Lisa008

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10:48 AM, 14th September 2024, About 4 weeks ago

If I was a lodger out at work all day and you’re at home recovering, I wouldn’t be happy to split the bills. I would have the heating on twice a day - morning and night and I’d walk around in layers of clothes. Some people want to wear a t shirt and have the heating on, full blast. As a lodger, I’d prefer one bill, all in. As a landlady - I’d prefer 1 bill as I’ve not got time to be splitting bills and penny pinching. You can get a smart meter that shows you how you’re racking up costs. It’ll make you think twice about even boiling the kettle. Change suppliers to a cheaper provider (paylessforyourbills.co.uk) but remember everything - including energy has gone up. I’m not sure how long you’ve had the lodgers but review their rent. And you can get a tado (control heating remotely) or a timeostat that only lets you put the heating on for max 2 hours at a time then it automatically shuts off so you have to put it on again. This can save you a lot of money because people will put on the heating and go to bed and can’t be bothered to go downstairs to switch it off. No all night heating on. It saved me and I have something like this in every house I’m paying the bills for. It’s a noticeable saving.

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