Commission for utilities

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  • Commission for utilities

    Some time ago, on another forum I think I saw something about landlords being offered commission when their tenants were signed up to certain utility companies.
    Has anyone ever heard of this and which utility companies offer the commission?

  • #2
    The company is Utility Warehouse

    Their rates are usually comparatively high and preventing your tenants from changing to a lower (commission free) provider might prove difficult.

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    • #3
      Originally posted by Snorkerz View Post
      T
      Their rates are usually comparatively high and preventing your tenants from changing to a lower (commission free) provider might prove difficult.
      1. their rates have been competitive with other suppliers for normal credit meters, but are definitely higher for PAYG users.
      2. the mobile/phone/broadband package is probably the best part of the deal.
      3. not difficult to change to another provider, customer calls or signs up with new provider, and switch takes place in usual fashion.

      some people like the cashback card that comes with the package -useable in sainsbury/bq/homebase.

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      • #4
        Originally posted by havensRus View Post
        3. not difficult to change to another provider, customer calls or signs up with new provider, and switch takes place in usual fashion.
        Sorry, what I meant was that some LL have a clause in their AST that says the utility suppliers can't be changed (to protect their commission) - I suspect that short of evicting on s21 or s8g12 there is little a LL could do to enforce that.

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        • #5
          Originally posted by Snorkerz View Post
          What I meant was that some LL have a clause in their AST that says the utility suppliers can't be changed (to protect their commission)
          The contract for supply of utilities is between supplier and tenant therefore landlord cannot direct otherwise, or enforce clause. The only time this is generally acceptable is where there is a block of flats and is incorporated within tenancies as a condition of the freeholder/head lessor.
          The advice I give should not be construed as a definitive answer, and is without prejudice or liability. You are advised to consult a specialist solicitor or other person of equal legal standing.

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          • #6
            Originally posted by Paul_f View Post
            The contract for supply of utilities is between supplier and tenant therefore landlord cannot direct otherwise, or enforce clause. The only time this is generally acceptable is where there is a block of flats and is incorporated within tenancies as a condition of the freeholder/head lessor.
            I have no doubt you are right - but OP wanted information with regard to receiving a commission payment off the supply company. My very point is that there are no guarantees that tenant would want to use the 'preferred supplier'

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            • #7
              some LL have a clause in their AST that says the utility suppliers can't be changed
              OFT have ruled (see

              http://www.oft.gov.uk/advice_and_res...onsumer/oft356
              )
              Exemplar unfair clause,,,
              Against changing the phone or utility supplier.

              OFT View..
              The tenant should have the choice of
              supplier although he may be required to
              keep the landlord informed of any change
              and to return the account to the original
              supplier at the end of the tenancy

              that such clauses are unfair & wrong ...

              As far as UW are concerned their management scheme/structure appears very like a Pyramid Scheme although they have told me it is not a Pyramid Scheme so that's all right then...they must be right

              They try to sign up LLs & agents as "distributors" (or some other title...) ho hum...

              Personally I wouldnae tryst UW further than I could throw them, and I have a bad back...


              Cheers!

              Lodger
              I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...

              Comment


              • #8
                I looked into it in the past and came to the conclusion that getting involved with the UW is not worth the hassle.

                You are expected to spend an awful lot of time over it for hardly any returns, not to mention that trying to get your tenants to use UW would be both illegal and likely to cause resentment.

                As far as I can remember all their internet packages were capped as well, so if your tenants watch movies or play games online they won't want that.

                But most importantly, if you are looking for an additional stream of income, you are better off devoting time to building a business of your own rather than UW's one. At least, that was my conclusion. We are all different, of course.

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                • #9
                  On moral grounds, I would not sign up a tenant to a higher tariff.

                  I have not studied prices, but if they were competitive, then I think it would be fine.

                  I currently have a hatred of british gas pre-payment meters. Because when the property is inbetween tenants, they still make a standing charge, even though not a single penny of has been used. This is a problem, when I get new tenant in because there will be a debt of £15 by the time they move in and they will not be able to use heating or cooking.

                  In the past British Gas have sent new gas cards to clear the debt, but it has not worked. Forcing you wither to pay off the debt or spend half a day from 8am to 1pm waiting for their engineer to come and reset the meter....

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                  • #10
                    Originally posted by theartfullodger View Post
                    OFT have ruled (see

                    http://www.oft.gov.uk/advice_and_res...onsumer/oft356
                    )



                    that such clauses are unfair & wrong ...
                    But, as we all know, OFT 'rulings' have no validity. They issue them in terrorem only.
                    JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
                    1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
                    2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
                    3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
                    4. *- Contact info: click on my name (blue-highlight link).

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                    • #11
                      Aye Jeffrey..


                      Luckily Landlord's posting here always do what is fair and right...;-)..

                      And we await the Foxton's case appeal (or not...)?

                      Cheers!

                      Lodger
                      I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...

                      Comment

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