All inclusive rentals – an opportunity to charge more?

Tenants who rent properties with bills included are willing to pay more than those who manage bills themselves, data from London platform Rentd has found.

This indicates that landlords may be able to get bigger returns if they manage the likes of council tax, gas, electricity, broadband and a TV licence.

In the capital it costs 17% more to rent a property with bills included, at £2,023 per month, compared from £1,724 without bills included.

Managing bills and utilities typically costs £240 per month, meaning it costs £1,964 per month when tenants manage bills themselves.

This means that all inclusive tenancies cost tenants over £700 more a year (£59 more per month).

Ahmed Gamal, founder and chief executive of Rentd, said: “A rental property that offers the convenience of covering your household bills within one monthly rental payment has long been a draw for many tenants. It can remove the considerable headache of handling your own bills, removing the need to organise and manage multiple direct debits, split costs between housemates and adjust for any changes on an ongoing basis.

“However, with the capital already home to the highest cost of renting in the UK, the increasing cost of living will no doubt be on the mind of many London tenants. Those who are already particularly hard pressed may find that they can cut their household outgoings by quite a substantial sum, simply by spending a little time and effort taking care of their household bills themselves.”

Despite this higher cost, 26% of London rental properties listed on the market with bills included have already been snapped up. This tenant demand climbs as high as 38% or more across Brent, Harrow, Tower Hamlets and Greenwich.

However, Rentd’s research also shows that this demand coupled with a lack of stock could be contributing to this higher cost. Just 8% of all London rental homes currently listed on the market provide the draw of bills included within the top-line cost of renting.

Sutton has one of the lowest levels of available rental stock that includes the cost of bills at just 3%, along with Kingston and Wandsworth.

Comments 1

  1. I would think that you would be crazy to contemplate this, it would be wide open to abuse. It seems to me that rent arrears would mean the landlord falling into arrears for every utility bill, Council tax and internet bill that would normally fall on the tenant. In many areas around here the heating would be on permanently and so would the power for the benefit of the special “house plants” that some tenants like to cultivate. You would have to establish some sort of fair usage policy for utilities but how could it be enforced?

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