Bills at a HMO

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  • Bills at a HMO

    I am looking at buying a house and then doing the necessary work to get a HMO license and rent out as rooms with shared kitchen and living area.

    I am unsure what to do regarding the rent and bills, please can somebody give me advice on what they do -

    should the rent exclude bills and how are these then managed by me?


    should the rent include all bills, in which case please can somebody advise approximately how much a gas/electric bill would be in a house with six bedrooms, kitchen and living room if you have a similar setup?

    Thank you


  • #2
    Hi Gordon,

    I have an HMO with six bedsits and two self-contained flats. All the bedsits have their own kitchens and the tenants share two bathrooms. Council tax is included in the rent, as well as the gas. Hot water is constant and heating is on 8 hours a day (2 hours in morning and 6 hours in evening). Outside those hours they have oil-filled electric radiators (supplied by me) which they pay for through pre-pay electricity meter. This setup of course means they cannot run up huge bills by having heating on 24 hours a day with the windows open, or filling the kettle to full capacity, etc, just because it's included! This has worked very smoothly for almost 40 years and tenants like the fact their tenancy is hassle-free with no bills to worry about.

    However, as your setup is different, in that they would have more shared areas, it may not work for you.

    Hope this helps.



    • #3
      I've got 2 multilets both with 6 tenants. You best to handle all bills as problems with none of the tenants wanting to be responsible for anything outside their own rooms will cause you a problem.
      If you have managed your money right you should get away with £90 gas, 130 electric, plus council tax and normal water bills. If your lucky you house has no water meter.
      I have no problem with any tenants leaving windows open all day long or wasting hot water etc, this is down to good management.
      My opinions are exactly what you would expect, my own!


      • #4
        Definately charge rent inc of bills you wil get into a stinkng mess otherwise (trust me iv'e got the Tshirt jumper and jacket to match!)
        Also T will no want to move in and be legally responsible for a stranger's bills ....(this will only apply if on sep ast's)
        How much to allow personally on 6 let iwould agree with above figs ...which will comfartably allow for heating on all day in the middle of summer, whilst T are all in work , know to dry one solitary T shirt on the bathroom radiator !!!!!!!!!!!LOL not !(yep ...expect this to happen ...cos it will)

        You will only need a license if 3 storey or more AND more than 5 T ...if your 6 is over 2 storeys you wont need one ...although you should look at fire safety regs ....your local coubcil website should give you all this info ...

        If you let to 6 on joint ast then all bills will be payable by T directly.

        A pessimist sees the difficulty in every opportunity; an optimist sees the opportunity in every difficulty.


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