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!

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