Understanding your financial responsibilities is crucial to avoid any surprises. As a tenant, there are certain bills you'll be responsible for on top of your monthly rent.
In this guide, we'll walk you through the essential bills you should be aware of and help you better prepare for your new home in the UK.
Bills include council tax, TV license, internet, gas, electricity and water.
Council Tax
Council Tax is a local tax levied by local authorities in the UK to fund essential services in your area. These services include rubbish collection, street lighting, police, fire services, schools, and more.
Full time students are exempt from paying council tax.
You can also get a 25% discount if you live alone, or it's only you and children under 18 living at your home.
Council Tax is calculated based on the valuation band of your property. Properties are divided into eight bands (A to H), with Band A being the least expensive and Band H being the most costly. Each local authority sets its Council Tax rates, so the amount you pay may differ depending on where you live. Find your local council here.
If you share a rental property with other tenants, and you all have joint tenancy, you will be jointly responsible for paying the Council Tax. This means that if one person fails to pay their share, the others may have to cover the difference.
If there are any changes in your circumstances, such as moving out, changing tenants, or qualifying for discounts/exemptions, you must inform the local council promptly. Failure to do so could result in incorrect billing or penalties.
Gas and Electricity
Before moving into your new rental home, you have the freedom to choose your energy supplier. In some cases, bills are included in your rent which would mean that the energy bills might be in your landlord’s name.
If you are not sure, check your contract. Learn how to understand your contract here.
Research and compare different providers to find the best deals and tariffs that suit your needs and budget. For this, you can use Uswitch.
Once you've made your choice, inform the selected supplier about your move-in date to ensure a seamless transition of service.
Energy bills are typically issued monthly or quarterly. Most suppliers offer various payment methods, such as direct debit, online payments, or Pay-as-You-Go meters. Setting up a direct debit can help ensure you never miss a payment and may also make you eligible for certain discounts.
Water
As a tenant, you are typically responsible for paying water bills directly to the water supplier. In some cases, the landlord might include water bills in the rental agreement or charge them as part of a service charge. Clarify this arrangement with your landlord to avoid any confusion.
Water billing can be either metered or unmetered. With a metered supply, you pay for the exact amount of water you use, usually based on meter readings taken periodically. Unmetered supply means you are charged a fixed rate, often based on the property's size or the number of occupants. If you have a metered supply, taking regular readings can help you monitor and manage your usage.
Broadband (Internet) and TV
Before moving into your rental property, research different internet service providers in your area. Compare their plans, prices, and customer reviews to find an ISP (Internet Service Provider) that offers a suitable package for your internet needs and budget.
ISPs usually offer various internet packages with different speeds and data allowances.
Internet service providers may offer fixed-term contracts, often with discounted rates for an agreed-upon period. Be aware of the contract terms, early termination fees, and any potential price increases after the initial period. Bundling internet with other services like TV and phone might also be an option to explore for potential cost savings.
When you've selected your ISP and plan, schedule the installation date with them. The ISP will send a technician to set up the internet connection at your rental property. Make sure you're present during the installation or have someone you trust to be there.
Use a service like Uswitch to learn about different plans.
Service Charges
In some cases, you may be required to pay service charges for gardening or the cleaning of communal areas.