In previous years it was usually easy to absorb your tenants’ electricity bill as it was a small amount and often not worth the effort to separate.

However these days with the skyrocketing price of electricity and more price increases on the horizon many landlords may rethink the previously acceptable practice of including the tenants electricity in a predetermined rental price.

It becomes a problem because you cannot increase a fixed rental amount whenever you want and even upon renewal of their lease you can usually only increase it by a relatively small amount which you previously stipulated in your original lease agreement.

You need to take into account the electricity price increases that are likely to be implemented over the course of the year and the fact that people use far more electricity during the winter months in an effort to keep warm. It would be inadvisable to unthinkingly offer new tenants a lease agreement that includes their electricity.

Your best bet is to install a prepaid electricity meter in the rental property and have the tenants pay for their own electricity consumption, there are systems that allow them to purchase vouchers either directly from you or from the supplier. Where separation of accounts is not possible be aware that your bill is going to go up in the winter and you will have to take responsibility for it.

What do you think? Are prepaid electricity meters the best thing since sliced bread?