Utility responsibility is straightforward in a standard single-let tenancy but more complex in HMOs, bills-included arrangements, and during tenancy changeovers. Getting the changeover process right — obtaining meter readings, notifying suppliers, and registering accounts correctly — avoids landlord liability for unpaid bills and prevents billing disputes at the end of the tenancy.
Council tax during void periods is one of the most commonly overlooked landlord costs. Most councils charge full council tax on empty properties between tenancies, and some charge significant premiums for long-term empty properties. Factor void period council tax into your rental yield calculations.
Utility responsibility — the basic framework
Responsibility for utilities follows occupation:
- In most private residential tenancies, the tenant is responsible for gas, electricity, water, and council tax from the tenancy start date. The landlord's obligation is to ensure connections and installations are in place
- The tenancy agreement should specify which utilities are the tenant's responsibility and which the landlord pays. A bills-included tenancy places some or all utility bills on the landlord
- Council tax: in a standard tenancy, council tax is the tenant's responsibility. If the property is empty between tenancies, council tax becomes the landlord's liability as owner
- Water: typically the occupier's responsibility. In older properties, check the historic billing position — some older arrangements charged water rates to the landlord
- EPC requirement: the property must have an EPC rated E or above for a new tenancy. Landlords cannot let an F or G rated property without a registered exemption — check the current minimum standard at the start of any tenancy
Council tax during void periods
Empty properties between tenancies create council tax liability for the landlord:
- When a property is empty between tenancies, council tax liability transfers to the landlord as owner. Most councils charge full council tax on empty properties — check your specific council's policy on void period discounts
- Empty property premium: some councils charge a premium for long-term empty properties (50–300% of full council tax for properties empty over 1–5 years, depending on the council). Avoid extended void periods wherever possible
- Student exemption: a property entirely occupied by full-time students is exempt from council tax. Register the exemption with the council — students must provide council tax exemption certificates
- HMO council tax: in an HMO, the landlord (not the individual tenants) is typically liable for council tax. The landlord includes council tax costs in the all-inclusive rent for bills-included HMOs
- Notify the council promptly: register the change of liability when a tenancy starts and ends. A landlord who does not notify the council when the property is re-let may continue receiving bills that are now the tenant's responsibility
Bills-included HMO lettings
The landlord is the utility account holder in bills-included arrangements:
- In a bills-included HMO, the landlord includes gas, electricity, and typically broadband in the rent. The landlord is the account holder and pays utility bills directly to the supplier
- Fair usage cap: many bills-included agreements include a usage cap. If consumption exceeds the cap, the excess is charged to tenants. The cap and calculation method must be clearly stated in the tenancy agreement
- Smart meters: install smart meters in bills-included properties to monitor usage accurately and bill any excess fairly. Smart meters also allow remote monitoring and early identification of unusually high consumption
- Ofgem resale rules: where the landlord charges tenants directly for utilities (metered by the landlord), Ofgem's maximum resale price rules apply — the landlord cannot charge more than the unit rate and standing charge they pay. Overcharging constitutes a civil offence
- Broadband: choose a reliable supplier with a contract that covers the expected tenancy period. A broadband outage in a bills-included property is the landlord's problem to resolve — factor response times and service quality into your supplier selection
Utility changeovers — move-in and move-out process
Correct changeover process prevents billing disputes and landlord liability:
- Meter readings on move-in: take gas and electricity readings on the day the tenant moves in. Provide the reading to the incoming tenant and notify the utility supplier of the new occupant and reading
- Meter readings on move-out: take readings on the day of key return. Provide to the outgoing tenant and notify the supplier of the tenancy end date and final reading
- Void period billing: register as the account holder for gas and electricity with the existing supplier during any void period. This avoids the property being placed on a default (expensive) tariff or bills being attributed to a departed tenant
- Switching suppliers: landlords can switch energy suppliers during a void period. When a new tenant moves in, the tenant can switch to their preferred supplier after giving minimum notice to the current supplier (typically 28 days)
- Water: contact the water company on the day of changeover. Provide meter readings on both sides of the changeover and ensure the incoming tenant opens an account in their own name
Landlord liability for utility debts left by tenants
Correct account registration prevents landlord liability for tenant bills:
- Energy debts: if a tenant leaves unpaid energy bills, the debt is owed to the supplier by the tenant — provided the account was in the tenant's name throughout. The landlord is not liable for the tenant's personal energy debts
- However: if the energy account remained in the landlord's name during the tenancy (because the landlord failed to register the account in the tenant's name), the landlord may be personally liable for the unpaid bills
- Best practice: ensure utility accounts are registered in the tenant's name from the first day of the tenancy. Obtain meter readings and notify the supplier on move-in day
- Council tax arrears: council tax arrears from a previous tenancy are the former tenant's personal liability — unless the period of arrears overlaps with a void (when the landlord was liable). Notify the council of the tenancy start date promptly to establish the division of liability
- Protect yourself: obtain final meter readings on check-out and notify all utility suppliers of the tenancy end date immediately. This creates a clear audit trail separating tenant liability from landlord liability
Frequently asked questions
Who pays council tax if the property is empty for several months during a refurbishment?+
You, as the landlord and property owner, are liable for council tax on any empty property. For a property undergoing major refurbishment, check whether your council offers a reduced rate for properties undergoing structural repair — some councils provide an exemption or discount for this category. You may also be able to reclaim council tax costs as a deductible expense against rental income for tax purposes — seek advice from your accountant.
Can I charge tenants more than I pay for electricity in a bills-included HMO?+
No — Ofgem's maximum resale price rules prohibit charging tenants more per unit than you pay to the supplier. You can recover your actual cost (including the standing charge) but cannot add a margin or administrative surcharge. Overcharging constitutes a civil offence and Ofgem can investigate. If you are covering administrative costs of billing, factor these into the all-inclusive rent level rather than adding a per-unit surcharge.
What happens to utilities if a tenant abandons the property?+
Once the tenancy ends (whether through abandonment, formal surrender, or court order), you become responsible for utility accounts during any subsequent void period. Contact utility suppliers immediately on formally ending the tenancy to register as the account holder. Request meter readings on re-entry. This prevents bills being incorrectly attributed to the departed tenant (whose account will be closed) and avoids the property being placed on an expensive default tariff.
My tenant's energy supplier is claiming the arrears from me — what should I do?+
The energy supplier has no claim against you if the account was in the tenant's name throughout. Write to the supplier with evidence that the account was opened in the tenant's name on a specific date (your move-in notification confirmation) and that the tenancy ended on a specific date (your move-out notification). If the account was incorrectly in your name during the tenancy, you have a stronger legal position to pursue the tenant for the amounts paid — but the first step is to establish the correct account ownership in writing with the supplier.