All inclusive rent

All inclusive rent is where the tenant pays one combined amount that covers not just the basic rent but also some or all regular running costs. Typically this could include utilities like gas, electricity, water, as well as, Council Tax, broadband and sometimes cleaning or TV licence. It is common in HMOs, student lets and some serviced style rentals.

All inclusive rent can:

• Make marketing simpler and more attractive to renters who want predictable monthly costs.

• Shift the risk of price rises and usage onto you. If energy prices spike or tenants use far more than expected, your margin is squeezed.

Under the Tenant Fees rules carried through into the Renters’ Rights Act, you cannot add separate “admin” or handling charges for these services outside the list of permitted payments. If you choose an all inclusive model, the proper way to recover costs is to build them into the rent and describe clearly in the tenancy agreement what is included, any fair usage terms, and what happens if caps are exceeded.

You remain responsible for complying with safety and quality standards regardless of who pays the bills and where you are the bill payer, rent arrears or disconnections will be seen as a management failure, not the tenant’s fault.

Also see our landlord blog articles.