Electricity inclusive rental agreements?

Discussion in 'Property Management' started by Toon, 24th Oct, 2016.

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  1. Toon

    Toon Well-Known Member

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    Just making some preliminary enquiries on a property, which has the potential for dual occupancy, with the main house upstairs & a 2bdrm self-contained area downstairs. The RE suggested offering electricity inclusive rental agreements as the areas aren't separately metered. This seems like it could be open to abuse. Has anyone else here offered such an agreement?
     
  2. Colin Rice

    Colin Rice Mortgage Broker Business Member

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    Not personally but was chatting to a mate who lives in a complex where a "flat rate" is charged per quarter for electricity usage and divided by 6 for each unit.

    He was trying to save money and reduce his use to then be reminded by the REA that he is on a shared plan and his response was to not worry about it as its virtually a free for all. He runs his portable AC (reverse cycle) all the time and cranks his gas oven up as a heater as it doesn't matter (to him) as he is charged an equal portion either way.

    I would imagine this attitude would be a typical one in such arrangements.
     
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  3. Scott No Mates

    Scott No Mates Well-Known Member

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    Gotta love socially responsible people.
     
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  4. Toon

    Toon Well-Known Member

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    :eek: Just as I feared.
     
  5. Colin Rice

    Colin Rice Mortgage Broker Business Member

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    Responsibility is definitely not his strong point and he is still operating at the same level of maturity when we shared a house together 25+ years ago. He will be 50 years old soon :eek:
     
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  6. dabbler

    dabbler Well-Known Member

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    Ask the lucky one about heaters and shared places.... :)
     
  7. Zepth

    Zepth Well-Known Member

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    Probably worth the cost of getting a sub meter installed to avoid that scenario
     
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  8. Big Will

    Big Will Well-Known Member

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    I would get a separate meter as your rent might look slightly larger to compensate for the inclusion of electricity either that or you allow the main tenant to rent the property and allow them to sublease the second dwelling and get them to pay the electricity :).
     
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