Private landlords expected to react to higher utility bills
LANDLORDS who provide all-inclusive rentals for their tenants are likely to have to start charging for utilities as the cost of living rises.
The Guernsey Private Residential Landlords Association discussed this month's 9% increase in electricity costs, plus higher TRP, parish rates and other charges, at its annual general meeting. This has led to an unprecedented situation, said chairman Jeff Guilbert.
‘A landlord whose business model was to include all bills is now struggling somewhat,’ he said. ‘Electricity is the one that has caused everyone to reassess where they are.’
While some tenants pay their utility bills separately, he said, there were still arrangements whereby these were included in the rent, particularly where there is just one meter in a property under multiple occupancy, such as lodging houses, of which Mr Guilbert said there were about 185.
Landlords with such properties are considering what to do about the increases and Mr Guilbert said some could bring in a separate charge for energy bills.
‘A few landlords are saying they’ll leave the rent as it is and pay 50% of the energy bills and tenants will pay 50%. Or they could put the rent up by £10 a week.
‘So far the landlords have been absorbing all these increases. Everyone is going to review it.’
He said that rent in a lodging house is about £110-£120 a week at the moment.
Mr Guilbert has between 80 and 100 tenants at any one time.
‘I’ll be waiting for the next bill to arrive to compare it to the last one, then have a meeting with my tenants,’ he said.
He thought the majority of landlords would do something similar and that none would look to profiteer from the increases.
‘I’d hope that all the responsible landlords wouldn’t do that.’
. The GPRLA has 342 members representing 2,286 units of accommodation.
