✅ Updated March 2026
Rent to Rent Utility Bills:
How to Set Up, Manage and Control Costs
Utility bills in rent to rent are one of your biggest variable costs — and one of the most controllable. This guide covers who is responsible, how to set up accounts, and how to keep costs under control.
What This Guide Covers
Who Is Responsible for Utility Bills in Rent to Rent
In a typical rent to rent arrangement, utility bill responsibility is determined by your contract with the landlord and how you let the property to tenants.
For HMO rent to rent, the operator (you) almost always takes on responsibility for utilities — gas, electricity, water, and internet. You include these costs in the all-inclusive monthly room rent you charge tenants. This is the standard and most practical arrangement for HMOs.
For single let rent to rent (one tenant in the whole property), you can either include utilities in the rent you charge or have the tenant set up accounts in their name. Most single let operators pass utility responsibility to the tenant to simplify management.
Setting Up Utility Accounts for a New Property
When you take on a new rent to rent property, follow this process for utilities:
- Gas and electricity — contact the current supplier (find them via the Meter Point Administration Service for gas, or the Electricity Central Online Enquiry Service for electricity) and notify them you are the new responsible party. Shop around for a better tariff using comparison sites. For HMOs, consider a commercial or business energy tariff which can sometimes be more cost-effective
- Water — contact the local water supplier for the area (water is a regional monopoly). Register as the account holder. Water rates for HMOs are typically charged on a measured basis
- Internet — a reliable broadband connection is a major selling point for HMO tenants. Budget £30–£60 per month for a good-speed fibre connection. Consider a business broadband package which offers faster fault resolution
- Read meters on day one — always take meter readings on the day you take on the property and the day you hand it back. Document these with photos and timestamps. This prevents you being billed for usage before your tenancy started
How to Control Utility Costs and Protect Your Margins
Uncontrolled utility bills are one of the most common reasons rent to rent deals underperform. Here is how to keep costs under control:
- Install smart meters — smart meters allow you to monitor usage in real time. You can track consumption remotely and identify unusual spikes that may indicate equipment faults or wasteful usage
- Use energy-efficient appliances — when furnishing or refurbishing, choose A-rated appliances and LED lighting throughout. The upfront cost difference is minimal; the saving over a 3-year contract is substantial
- Thermostatic radiator valves (TRVs) — install TRVs on all radiators to allow individual room temperature control. This reduces heating waste significantly in HMOs where occupancy rates vary room to room
- Fix a fair usage cap in tenancy agreements — some operators include a fair usage clause in tenancy agreements, whereby excessive usage above a stated monthly threshold is charged back to the tenant. This is most relevant for single lets
- Switch tariffs annually — set a calendar reminder to review your energy tariff annually. Savings of £300–£800 per year per property are achievable by switching supplier
Frequently Asked Questions
Should I include bills in the rent for a rent to rent HMO?
For HMOs, yes — all-inclusive rent is the standard and most attractive offering for tenants. It simplifies management, eliminates disputes over individual usage, and allows you to price each room at a premium that more than covers the utility cost. Most HMO tenants actively prefer bills-included rooms.
What happens to utility bills during a void period in rent to rent?
During void periods you remain responsible for utilities — standing charges and minimum usage still accrue. This is one reason void periods hurt HMO cashflow. Minimise voids through good tenant management, proactive advertising when rooms become available, and competitive pricing. Always factor a void allowance into your deal analysis. For more detail, see our guide to managing tenants.
Can I claim utility costs as a business expense for tax?
Yes — utility bills for rent to rent properties are a legitimate business expense deductible against your rental income for tax purposes. Keep all invoices and account statements. Speak to an accountant who specialises in property to ensure your expenses are correctly claimed and allocated. For more detail, see how rent-to-rent tax works in the UK.
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