Bills – Landlord vs Tenant Obligations

As a tenant or landlord, it’s essential to understand your obligations when it comes to bills and costs. This blog post will explore the responsibilities of both parties and offer tips for clear communication and conflict resolution.

Assured Shorthold Tenancy (AST) standard Tenant obligations 

A standard AST defines tenant bill obligations as follows:

  • Council tax
  • Water and sewerage
  • Gas 
  • Electricity 
  • Any telecommunications 
  • Television licence 

This obligation covers the period of the tenancy as well as any renewals. 

Can these obligations change? 

Before the contract is agreed and signed, special conditions can be placed in the contract to redefine the ownership of any particular bill. For example, a landlord may want to include electricity as part of the agreement.

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Landlord Obligations

There are plenty of other bills and costs you need to be aware of as a landlord and these are rarely passed on to the tenant. Things you should consider:

  • Home insurance: Home insurance covers the cost of damage or loss to the property, including contents. While landlords are typically responsible for insuring the building, renters are responsible for insuring their personal belongings.
  • Service charges and ground rent: If you own a leasehold property, you may need to pay service charges for the maintenance of communal areas, and ground rent to the freeholder. These charges are typically the responsibility of the landlord.
  • Mortgage payments: If the property has a mortgage, the landlord is responsible for making regular payments to the lender. It’s worth noting that landlords should try and avoid being hand to mouth between their rental income and mortgage payments as this means that any unexpected maintenance or rental arrears could leave them at risk of breaching terms with their lender.
  • Maintenance and repairs: The landlord is typically responsible for maintaining and repairing the property, including fixing leaky roofs or repairing broken appliances. However, if the damage is caused by the renter’s actions, they may be responsible for the cost of repairs.

Communication and Conflict Resolution

Clear communication is essential between landlords and tenants. It’s important to discuss each party’s obligations regarding bills before signing a rental agreement. This can help avoid misunderstandings and conflicts later on. If a conflict does arise, it’s best to approach the situation calmly and professionally. It may be helpful to set expectations early on surrounding communication, how to report issues, response times and contactable hours. If a resolution can’t be reached, there are options for seeking mediation or legal assistance.

Conclusion

Understanding landlord and tenant obligations is critical for maintaining a healthy and productive rental relationship. As a landlord, it’s a legal requirement to provide a habitable living space, pay for certain bills and perform upkeep tasks. As a tenant, it’s essential to keep the rental unit clean and well-maintained, pay certain bills and report any maintenance issues in a timely manner. Clear communication and conflict resolution can help ensure a positive and productive rental experience for both parties.

Free Landlord Resources

Free Instant Valuation

See how much your property could get in rent.

Fee Saving Calculator

See how much you could save on property fees.

Yield calculator

Calculate your rental yield with our simple tool

Compliance checklist

Make sure your buy-to-let property remains legal.

Compliance Guide

Download your complete landlord compliance guide 

Meet Sam your local Expert

Sam has a wealth of experience across the private landlord and Build to Rent sectors. He has advised a wide range of clients across the whole of London on how to find great tenants, improve their assets and effectively market their properties for the best returns.

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