Utility, Council tax and other bills
It is essential that Buy2LetExpert manages all bills carefully. The
bills should be assigned to the tenants the moment a contract starts.
This process forms part of the
inventory but there are some other issues:
- Council Tax. Councils vary, but there is often an
opportunity to gain an exemption from the payment of Council tax if
building works is being executed. Such an exemption would not be
applied for just painting, re carpeting, cleaning and the like. To
obtain an exemption the property must be completely unfurnished
(including beds). The Council should be invited to inspect the
property to confirm the claim and the application for this exemption
should be made in writing the moment works start which will probably
be the same moment the old tenant leaves.
Clearly regardless of the exemption, it makes sense to execute
property repairs, redecoration and improvement as quickly as
possible, reducing voids to an absolute minimum. If the works do
involve building works, apply for the exemption but keep within the
rules which are a bit complex. Buy2LetExpert can advise with more
details which may vary from council to council
- Utilities. Ensure water, gas and electricity are all
either registered with a tenant or the landlord the moment there is
a change. Metre readings should be taken as and when these changes
occur. Tenants can choose any supplier they wish (without the
landlord’s consent). Consequently, when a tenant moves on the
suppliers must be identified. Phone any of the utility companies and
they will usually help provide the existing supplier as they want
the new account! Once the existing suppliers are established give
all readings and changeover details in writing. Water is sometimes
provided and charged per volume used and sometimes on a fixed charge
regardless of usage volumes. If there is a water metre take the
reading (even if not registered).
- Other Bills. Tenants may often leave bills unpaid
(sometimes unintentionally). Buy2LetExpert always insist on
returning deposits by post and therefore having a forwarding
address. That way any unpaid bills can be dealt with. It is very
important that bills to old tenants are not ignored. They should not
be paid, but should first be forwarded by Buy2LetExpert to the old
tenant. If final demands follow, the debtor should be contacted to
avoid bailiffs visiting the property and annoying new incoming
tenants. Bailiffs tend to knock very early in the morning and can be
quite aggressive and may even attempt (illegally) to get inside the
property!
Regardless of which bill is being dealt with above, Buy2letExpert
will always, communicate in writing. This is very important. Any
telephone calls should be noted and names taken. Years of experience
have taught us of the importance of this especially when dealing
with Councils and former state owned enterprises. Such organisations
are so enormous that information is often 'lost' in a huge
'bureaucratic' machine. The client or his agent must take control of
the communication otherwise confusion will definitely follow.
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