G'day,
I am a freeholder for a block of flats that was being managed by a company that went bust. They were paying the utility bills, but obviously that stopped and by the time I found out the extent of the problem the flats were close to having their electricity cut off.
To resolve the situation I put the utility contracts in my name and pay the bills, with the understanding that the leaseholders pay their share of the bills and, supposedly, getting the money from their tenants. With some tenants by-passing the card meters, this has posed its own challenges!
While some of the leaseholders abide by this arrangement and pay a regular amount, others have not and this is causing me a problem.
Their argument is, and I can quite understand this, that it is the tenants who should pay utility costs. My position is that I'm simply the middleman between the suppliers and users, and how the leaseholders recover their money is down to them and the management company they use to secure tenants.
I had agreed to receive a peppercorn rent from this block at best, although haven't charged anything until the problems with the whole block are sorted and each flat can wash its face. Costs such as refurbishment are being collectively agreed upon and shared among the leaseholders.
Meanwhile I am seeking quotes to provide each of the flats - there are 13 in all - with their own meters and supply that will place the emphasis to pay the utilities in the hands of the tenants. I suspect this might be quite expensive though.
I am happy to keep on paying the bills as it's the most cost-effective solution, providing the leaseholders/tenants reimburse me for the costs. I do show each leaseholder copies of the actual bills.
Does anyone have any suggestions how to move this forward? Where would I stand if I lumped all costs into a service charge?
Many thanks.
I am a freeholder for a block of flats that was being managed by a company that went bust. They were paying the utility bills, but obviously that stopped and by the time I found out the extent of the problem the flats were close to having their electricity cut off.
To resolve the situation I put the utility contracts in my name and pay the bills, with the understanding that the leaseholders pay their share of the bills and, supposedly, getting the money from their tenants. With some tenants by-passing the card meters, this has posed its own challenges!
While some of the leaseholders abide by this arrangement and pay a regular amount, others have not and this is causing me a problem.
Their argument is, and I can quite understand this, that it is the tenants who should pay utility costs. My position is that I'm simply the middleman between the suppliers and users, and how the leaseholders recover their money is down to them and the management company they use to secure tenants.
I had agreed to receive a peppercorn rent from this block at best, although haven't charged anything until the problems with the whole block are sorted and each flat can wash its face. Costs such as refurbishment are being collectively agreed upon and shared among the leaseholders.
Meanwhile I am seeking quotes to provide each of the flats - there are 13 in all - with their own meters and supply that will place the emphasis to pay the utilities in the hands of the tenants. I suspect this might be quite expensive though.
I am happy to keep on paying the bills as it's the most cost-effective solution, providing the leaseholders/tenants reimburse me for the costs. I do show each leaseholder copies of the actual bills.
Does anyone have any suggestions how to move this forward? Where would I stand if I lumped all costs into a service charge?
Many thanks.
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