What to do if your tenant is not paying utilities

Landlords in the United Kingdom can find it frustrating if their tenants are not paying utilities. It could be that your tenant is not paying water bills, or there could be an accumulation of unpaid utility bills to deal with. Either way, tackling the issue as quickly as possible is best so it doesn’t spiral out of control.

It can be quite a contentious subject, so dealing with it professionally is important to maintain a positive landlord-tenant relationship and protect your property investment. This article will outline who is responsible for utility bills and what happens if a tenant has unpaid utility bills. It will also provide practical steps for landlords to take when dealing with the problem.

Who is responsible for utility bills?

Understanding who is responsible for utility bills – tenant or landlord – is crucial. The landlord may decide to keep bills in their own name and include the payments in the monthly rent. This is common in HMOs [houses in multiple occupation], such as student lets. The landlord must state this clearly in the tenancy agreement.

But usually, the tenant is responsible for most bills. The landlord needs to state this in the tenancy agreement and highlight which bills are covered by whom if there is a split. So, what happens if the tenant is not paying utilities? Let’s find out.

Steps to take if the tenant is not paying utilities

If you discover a problem with utilities, such as the tenant not paying water bills, landlords should take a structured approach to fix the issue. However, landlords should remain professional and follow the guidelines set out by the UK regulations. Here are some key steps to take when the tenant is not paying utilities.

1. Have a calm discussion: Landlords should have a conversation with the tenant. The landlord should not go into the conversation with all guns blazing. Be mindful and show empathy for the tenant’s reasoning. It could be that they have simply forgotten to make the payment. Financial difficulties, which could be a sensitive issue, may also play a part. A constructive conversation ensures the problem doesn’t escalate unnecessarily and helps maintain a positive tenant-landlord relationship. 
2. Issue a formal written notice: There’s a good chance the informal conversation will solve the problem of the tenant not paying utilities immediately. However, if it doesn’t resolve the issue, then the landlord will need to take further action. They should send a formal written letter which links back to the tenancy agreement. It should detail the tenant’s unpaid utility bill(s) (for example, a tenant not paying the water bill) and give a reasonable deadline for payment. 
3. Keep detailed records: All communication about a tenant’s unpaid utility bills needs to be recorded. These records are vital if the problem goes further.
4. Seek professional legal advice: If the tenant continues to have unpaid utility bills, then landlords can consult with professionals to deal with it. They can ensure that your actions comply with UK regulations, such as the Housing Act 1988, and guide you through potential next steps, including court action if necessary.

By following these steps, landlords can address tenant unpaid utility bills systematically while minimising the risk of legal or financial complications.

Importance of documentation

It might seem like a bit of extra work at the time, but documenting everything in detail will pay off if you need to lean on it. The documents will provide evidence of your tenant not paying utilities and showcase that you have followed the correct procedures. These records can protect landlords in court. Key documents to keep include: 

• The tenancy agreement highlighting who is responsible for which bills
• Invoices showing the tenant’s unpaid utility bills
• Your letters and notes from conversations with tenants
• Formal notices and proof of delivery

Measures to prevent the tenant not paying utilities

A landlord is often spinning many plates at once, especially if they are managing multiple properties. The last thing they want is to be stressed out by a tenant not paying their water bill. It’s impossible to ensure everything is fail-safe, but there are measures you can take to reduce the chances of a tenant having unpaid utility bills.

These measures include a clear tenancy agreement, a positive landlord-tenant relationship, and a landlord who monitors these aspects closely through regular account monitoring.

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