Sharing: rent, bills and lead tenants
There may be a 'lead' tenant, whose name is on the tenancy agreement. That person is responsible, individually, for the payment of all the rent. If other people agree to share and fail to pay their part of the rent; decide at the last moment to pull out; or go off in a huff somewhere else, then the lead tenant may find that they have to pay much more than their share of the rent.
The landlord is under no obligation to seek the rent from anyone other than the person who is on the tenancy agreement and their guarantor. The same is true of the utility companies – they will seek to recover payment from whoever is the named person on the contract.
Sadly, it is very common for friends who share a house or flat to fall out over the payments. It is not only necessary for everyone to pay their share of the rent as agreed – they also need to pay their share of the electricity, gas and phone bills and for their food. Think before you share about whether you can trust your friends to pay what they owe.
If the named tenant is paying the landlord by standing order it may be sensible for the other tenants to pay their share to the named tenant also by standing order.
Where the group as a whole are all signatories to the tenancy agreement, it is helpful if they all pay the landlord directly from their bank accounts by direct debit or standing order.
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Paying by direct debit and standing order
Tenants are often encouraged to pay their bills by direct debit or standing order. These are different forms of electronic transfers from your bank account. The difference is that a direct debit is set up and controlled by the company or organisation that you are paying. A standing order is a regular payment that is set-up and controlled by the person making the payment. This can be done online if you operate an internet bank account. You need to make sure you have sufficient money in your account for the bank to process a direct debit or standing order – if you don't, you could face penalty charges from the bank and the risk that the payment is refused.
The bills
Before you move in you will need to speak to the various utility companies, notify them of the date and time you are moving in and make sure that you are not going to be billed for what the people who lived there before consumed. Check when your first bills arrive that you are only charged for what you owe and only from the date your tenancy begins.
When you move in make a careful note of the gas and electricity meter readings – and water, if this is metered. You will need to phone these through as soon as you move in, unless you are on a prepaid meter.
Gas
There are a range of companies that sell gas. However, if you move into a flat you may need to use a prepayment meter. Using a prepayment meter also protects you from one of your friends who uses vast amounts of gas and then disappears without paying. Landlords are very keen on prepayment meters as it prevents them being saddled with bills left behind by tenants. The main supplier is British Gas, but other gas suppliers will also fit prepayment meters.
Details on the gas supply companies and on prepayments is available at:
www.adviceguide.org.uk/index/your_world/gas_and_electricity/gas_supply.htm.
Your landlord has responsibility for gas installations, including all gas equipment being tested annually by a Corgi registered engineer. Failure to comply with this is extremely dangerous. Leaking gas appliances can kill.
See:
www.hse.gov.uk/gas/domestic/co.htm
Electricity
Generally speaking, the same companies that supply gas also supply electricity. You can also pay for electricity using prepayment meters.
For more information again go to:
www.adviceguide.org.uk/index/your_world/gas_and_electricity/gas_supply.htm.
Further background on energy companies and reducing your energy bills can be accessed at:
www.consumerfocus.org.uk/en/content/cms/Energy_Help___Advice/Energy_Help___Advice.aspx.
There are some simple tips for reducing energy consumption.
- • Pull the curtains in the evenings – it traps hot air in the room overnight.
- • Switch off heaters when you don't need them.
- • Put on an extra layer of clothes rather than putting the heating on.
- • Use a timer for central heating, so that it switches off after a while.
- • Fit thermostats on radiators, so they don't overheat.
- • If your home doesn't have double glazing, cover the inside of the windows with clear polythene during the winter.
- • Close doors.
- • Don't leave computers, televisions and other gadgets on when you are not using them.
- • Don't leave things on standby mode.
- • Don't overcharge mobiles and laptops.
- • Use energy saving lightbulbs.
- • If the water tank is not lagged, pad it with blankets.
- • Wash clothes at 40 degrees or less.
- • Wash full loads only.
- • Put lids on saucepans when cooking.
- • Only put as much water in a kettle as needed.
- • Don't let hot water taps drip.
Water
You will need to check with the landlord who pays the water bills. Usually water rates are included in the rent. But sometimes they are billed to the tenant. Occasionally water is metered: in which case your household will have to pay for the water used. In Scotland, water rates are included within the council tax bill, so undergraduates are exempted.
Phone
There are several companies that provide phone services, including BT, TalkTalk, Virgin Media and Sky. You may be able to arrange a joint phone, broadband internet and tv package. But you may prefer not to have a fixed line phone and instead use your mobile. Calls on mobiles are usually more expensive than those from fixed line phones – but if everyone uses their own mobile it avoids rows about who owes what for phone calls.
If your property is classed as an HMO (House in Multiple Occupation – see above) your landlord is obliged to have a phone line fitted – though it is the tenants' responsibility to pay for the calls.
More information on phone suppliers is available at:
www.adviceguide.org.uk/index/your_world/communications/phone_services.htm.
Internet
You will need to decide whether you want home internet access. If you do, suppliers include BT, TalkTalk, Virgin Media and Sky – though not all of them can provide broadband services in all areas. There are alternatives to having a broadband line fixed to your home. Mobile broadband – available using a dongle plugged into a laptop, notebook or desk top computer – is a competitive alternative and, according to location, can provide high quality internet connections. Mobile internet using a Blackberry or similar mobile device is another option.
An excellent guide to broadband is published on the Bristol University website. Some comments are specific to Bristol, but most information is generally relevant.
See:
www.bristol.ac.uk/is/computing/advice/homeusers/broadband/choose.html.
A service comparison website examining broadband options can be accessed at:
www.broadband-suppliers.co.uk/.
Council tax
You may not need to pay council tax. If you live in university halls, or in a house where everyone is classed as a full-time student, you'll be exempt from paying council tax.
If you share with someone who is not a full-time student, there will be a council tax liability – though your household may get a discount.
Further information – and details on how to get an exemption claim form if you are being billed for council tax – is available at:
www.direct.gov.uk/en/EducationAndLearning/UniversityAndHigherEducation/LifeAtUniversityOrCollege/DG_071488.
Students cease to qualify for a council tax exemption as soon as they graduate.
TV licensing
You need to buy a tv licence – even if you live a hall of residence and even if you only watch tv on a laptop computer or mobile phone. The cost is £142.50 a year. It can be spread by paying monthly using a direct debit. If you only rent a home during term time and move back with your parents for the summer, or go on a long holiday/study visit, you can get a refund for the period you are away.
Further information is at:
www.tvlicensing.co.uk/information/students.jsp.
Insurance
It is a good idea to have your property insured. This will mean that if your computer, television, books, dvd player, bike, furnishings and so on are stolen, then you will be compensated. You need to check whether the policy would pay out the current value of the stolen goods – which would be much less than the replacement cost – or whether it is 'new for old' cover.
The main specialist insurer for students is Endsleigh, which is recommended by the National Union of Students.
For further information go to:
www.endsleigh.co.uk.
Saxon Insurance also provides policies specifically for students, with cover provided by the giant Aviva group.
Further details are available from the Saxon website:
www.saxoninsurance.com/studentshieldplusInfo.asp.
If you are studying abroad, a specialist insurance policy is offered by Aon:
www.students-insurance.eu.
Mainstream insurers of domestic properties – including the supermarkets, which now offer competitive products – can be compared on one of the money comparison websites. These include:
www.moneyfacts.co.uk
www.moneysupermarket.com
www.uswitch.com
The same websites can be used to compare other financial and domestic products.