£400 Energy Rebate to be Passed to Tenants.

[Carryon Regardless]

Is this me, am I viewing this wrong?

A landlord who pays for energy at a property and doesn't charge a tenant for energy must pass on the rebate received 'by the landlord'.

As I see it the landlord will be hit by increased energy costs, but the tenant will get the rebate for those increased costs.

Thankfully my tenants pay their own energy, in theory. But is this another ridiculous attack on landlords?

 

[Richlist]

I haven't read that anywhere. Do you have a link to the story.

[Carryon Regardless]

https://www.bbc.co.uk/news/uk-politics-62978908

I must've read it wrong, no one would expect a person to be given a rebate on costs some else had paid.

[Richlist]

Ok thanks for providing the link.

I'm surprised that as many as 13% (585,000) of all private rented properties have energy costs included in the rent .......why ? whatever is the advantage ? I dont get it ! 

I assume that the rent charged for a property that includes energy costs is higher than a property without energy costs. I assume a landlord would set the rent for this type of property not just higher but higher + a safety margin as they cannot accurately predict how much energy their tenant will use. As the tenant is paying for their energy thru increased rent I see that it is fair for the tenant to receive the benefit and not the landlord. But of course any landlord who finds him or herself out of pocket will just raise the rent at their next opportunity. This seems like an overly complicated way to let a property.

[Carryon Regardless]

A landlord being unable to know the energy used by a tenant is a point recognised. I'm sure my tenants aren't too unusual in that all light on and doors open, while heating full blast would be a norm.

Step daughter rents a 6th floor flatment on Docklands. Even in winter the place is warm w/o heating on. The last in Hammersmith had a communal heating and hot water set up. Here I can see a landlord might gain advantage if the properties are economical for energy use.

But if a landlord now inflates the rent to compensate the higher energy costs, and maybe again later, isn't this effectively charging the tenant for the energy? I thought we were prohibited from doing that?? It isn't something I have ever considered doing so may well be mistaken.

So I still see that if the landlord receives the £400 as bill payer, then must pass it to a tenant, the tenant isn't paying for the beer at the bar but is given the change.

[Richlist]

This is how it works :-

* The tenant pays an increased rent if their energy costs are inclusive.

* The landlord pays the energy bill and that expense is reimbursed by them receiving increased rent payments from the tenant.

* Therefore the Gov't £400 energy payment has to be passed to the tenant(s) who are ultimately paying the cost of their energy.

Simples.

Can anyone explain why 13% of private accommodation is arranged in this way ?

[kanrent]

On 9/21/2022 at 11:26 PM, Richlist said:

Ok thanks for providing the link.

I'm surprised that as many as 13% (585,000) of all private rented properties have energy costs included in the rent .......why ? whatever is the advantage ? I dont get it ! 

I assume that the rent charged for a property that includes energy costs is higher than a property without energy costs. I assume a landlord would set the rent for this type of property not just higher but higher + a safety margin as they cannot accurately predict how much energy their tenant will use. As the tenant is paying for their energy thru increased rent I see that it is fair for the tenant to receive the benefit and not the landlord. But of course any landlord who finds him or herself out of pocket will just raise the rent at their next opportunity. This seems like an overly complicated way to let a property.

It's absolutely ridiculous they could run up a massive bill, never heard of this before

[kanrent]

On 9/21/2022 at 11:57 PM, Richlist said:

This is how it works :-

* The tenant pays an increased rent if their energy costs are inclusive.

* The landlord pays the energy bill and that expense is reimbursed by them receiving increased rent payments from the tenant.

* Therefore the Gov't £400 energy payment has to be passed to the tenant(s) who are ultimately paying the cost of their energy.

Simples.

Can anyone explain why 13% of private accommodation is arranged in this way ?

How very complicated 

[Carryon Regardless]

I've been emailed by Bulb, and I'm in credit. No surprise we are at the colder end of summer.

But they are going to reduce my monthly payment, I haven't used the abacus yet but would expect my credit to disappear rather speedily.

They have included the Gov't assistances in their calculation. How much of this do I need pass to my tenants?

Now that diesel is coming down in price clearly my travel to properties is cheaper, until the WRA start to charge per mile on the A55 at least. Meanwhile how much of this saving should I be passing to my tenants.

Ah, but as interest rates are rising I must be able to pass on those additional costs to the tenants.

Kanrent maybe it isn't really complicated. If our overheads rise we charge more, if there is a reduction we charge less. This is to maintain a more consistent pre tax profit. By legislation I believe this will be designed to be approximately zero, so forget the tax bit.

[Richlist]

2 hours ago, Carryon Regardless said:

I've been emailed by Bulb, and I'm in credit. No surprise we are at the colder end of summer.

But they are going to reduce my monthly payment, I haven't used the abacus yet but would expect my credit to disappear rather speedily.

They have included the Gov't assistances in their calculation. 

All energy companies are doing the same. They are applying a discount of £66/67 a month for the next 6 months which equates to the £400 Gov' grant.