Quick links:

• What a tenancy agreement says about utilities
  
  • Tenant’s responsibility
  • Landlord’s responsibility ‘bills included’
• End-of-tenancy utility checklist for tenants
• End of tenancy utility checklist for landlords
• Unpaid bills and previous tenant debts
• Settling bills the easier way

As the end of your tenancy approaches, you need to settle outstanding utility bills with your landlord or letting agent. 

Moving is stressful and utilities can cause a lot of confusion. Your tenancy agreement outlines responsibilities for both landlord and tenant, which makes things easier and more clear. 

Avoid potentially expensive disputes over end-of-tenancy utility bills with this handy checklist   It’ll clarify responsibilities and outline the actions landlords and tenants need to take to make sure gas, water, electricity, and council tax charges are covered. 

A tenancy agreement plays a key role and determines who is responsible for utilities. It’s a legally binding document that specifically outlines which bills a tenant or landlord is responsible for, including gas, electricity, water, council tax, landline, and broadband. 

The tenancy agreement should also outline how much notice the landlord needs if a tenant switches supplier, or the reconnection fee the tenant has to pay if a supplier cuts off the supply at the property. 

These are the two most common scenarios for utilities in tenancy agreements in the UK:

Tenant’s responsibility:

• Standard tenancy agreements clearly state that the tenant is responsible for registering with suppliers, paying bills, and closing accounts when required.
• Under this type of agreement, tenants should give suppliers notice before the end of a tenancy and must pay any final bills incurred until the day they move out. 

Landlord’s responsibility AKA ‘bills included’:

• If you have a  ‘bills included’ or ‘all-in-one’ agreement, the landlord manages utilities and the cost is included in the rent.
• The agreement must include details of any fair usage clauses, maximum usage limits, or clauses around reconciliation or final adjustments.  

When the tenancy agreement is explicit about the responsibilities of landlords and tenants, it removes room for doubt and reduces the risk of disputes later. It’s legally binding, so once both landlord and tenant have signed it, they’ve both agreed to manage utilities as outlined in the agreement.

Misunderstandings can be expensive, so it’s best to make sure it’s clear in the agreement. Always read your tenancy agreement before you sign as tenant, and as a landlord make sure your tenanacy agreement is regularly reviewed and protects both you and your tenant.

Both parties need to keep hold of their copy for future reference, too. 

Let’s look at the steps you need to take as a tenant or a landlord…

If you’re responsible for your utilities, then you’re also responsible for all costs accrued within the dates covered by your tenancy agreement. You can owe money even if you move weeks before your tenancy ends, or weeks after it starts.

Here's end-of-tenancy checklist to help you take care of your responsibilities before you move on. 

Once you’re sorted and ready to move into your next place, you can follow our complete guide to setting up utilities in your new home.

Step 1: Check your tenancy agreement

You should already know who is responsible for managing your utilities, but it’s worth checking for specific end-of-tenancy clauses, especially for ‘all-inclusive’ contracts where final charges and fair-usage policies will be mentioned. 

Step 2: Notify your suppliers

It’s your responsibility to tell your suppliers you’re moving out. Contact each supplier individually to let them know as soon as you can; preferably at least 48 hours before the day itself. 

Step 3: Take final meter readings

On your last day in the property, take readings from every meter you’re responsible for (usually gas, electricity and water). Use your phone or another device that takes time- and date-stamped photographs to avoid any doubts. The time and date information on your phone is in the metadata under the “info” on each image.

Step 4: Submit readings and forwarding address

Get back in touch with suppliers and send them your final meter readings. You should also supply a forwarding address for your final bill and in case the supplier needs to contact you to resolve any issues. See this section in our moving home guide to learn more. 

Step 5: Inform the council

Don’t forget to tell the local council that you’re moving out. Give them your move-out date as well as details of your new address. Aim to do this within 21 days of the change to avoid overpaying council tax. 

Step 6: Settle your final bills

Your supplier will use your final meter reading to generate a final bill and send it to your forwarding address. You’re fully responsible for settling this bill, even if it is mistakenly sent to your old property, so be sure to check with your old landlord and supplier if you haven’t received it after a few weeks.

Extra tip: As a tenant, you should keep a record of all letters, final bills and meter readings relating to your old suppliers for at least 6-12 months to use in case of disputes or deposit challenges. 

Landlords have their own responsibilities when a tenant leaves their property. Regardless of who is responsible for managing the bills, there are a few steps landlords can take for a smooth transition, and to reduce the possibility of disputes. 

Step 1: Confirm tenant actions

Contact tenants to make sure they’ve contacted all suppliers for final bills, even if the tenancy agreement makes the tenant’s responsibilities crystal clear. This quick email or call could be the difference between a drawn out, confusing final billing dispute and a quick, easy transition. 

Step 2: Take meter readings

Follow our ultimate meter reading guide to get accurate readings during the final inspection. Keep your readings for reference for any disputes or confusion from your tenant. See our guide to help letting agents avoid utility disputes with meter readings for more information. 

Step 3: Contact suppliers and the council

Contact suppliers with your own meter readings, even if your tenants were responsible for the bills, and get the accounts put into your name for the void period, or straight into the new tenants’ name if there’s no void period. 

You should also contact the council to make sure their records are up to date and council tax has been billed correctly. 

Step 4: Manage void periods

Landlords (sometimes letting agents if they offer management services) are responsible for all utilities and standing charges incurred between tenancies, also known as a void period. If a new tenant isn’t moving in straight away, you’ll need to pay any charges or bills from suppliers after the end of the last tenancy. 

Find out more about how to manage landlord utility bills between tenants in our guide to common utility challenges for letting agents.

Bonus tip for landlords: Don’t switch off everything in a bid to keep bills down. Putting the heating on a timer helps prevent damp and keeps the property in good condition. 

Step 5: Do less work

Get rid of the admin work associated with the end of a tenancy with proptech services designed to make life easier.

One Utility Bill’s Notify service handles utility notifications for landlords and letting agents, reducing admin saving up to 56 hours a month based on 20 lets. 

And as part of the service, the One Utility Bill team gives tenants a welcome call, letting them know:

• The current suppliers at their new property
• Their options for switching
• The option of a One Utility Bill package

A One Utility Bill package puts a tenant’s chosen utilities into one easy monthly payment, with the option of unlimited energy. The One Utility Bill team also handle all of the bills admin for tenants, handling setup with their chosen suppliers. 

Everything so far assumes the tenant and landlord part on good terms. In reality, issues like unpaid bills or outstanding debts happen all the time. Resolving these issues quickly reduces stress for everyone concerned.

Who is responsible for unpaid utility bills? 

The tenancy agreement should make this clear:

• If tenants are responsible, the bills are in their name and they’re legally responsible for any left unpaid.
• If the tenancy is all inclusive or has some bills included, the landlord is responsible for any bills left unpaid.

Important note: Tenants are not responsible for any previous tenants' unpaid bills (or a landlord's, if there has been a void period).  

What if a tenant leaves without paying?

If a tenant leaves an address without paying their final bill, the supplier will attempt to contact them for payment. 

If the tenancy has legally ended, the supplier can’t demand any payment from the landlord or a new tenant because they’re not the liable party and are not legally responsible for the debt.  . 

What about bills sent to new tenants or landlords?

If a tenant doesn’t give a forwarding address, the supplier could send letters and bills to the last listed address. This can be concerning for landlords or any new tenants, because it can cause confusion about who’s responsible for the debt.  These letters are sometimes addressed to ‘the occupier’, which makes it even more challenging to figure out who’s responsible.

Suppliers can only bill the personal legally responsible for the debt, i.e. the liable party. This is determined by the tenancy agreement.   This is why it’s important to contact suppliers at the end of a tenancy, or as soon as it becomes clear that a tenant has left without paying outstanding debt. 

Can a landlord use a deposit for utility bills?

This is a tricky question. A landlord can only claim from a tenancy deposit if they can prove they have suffered a financial loss. An unpaid utility bill in a tenant’s name won’t cause a financial loss. 

However, in an all-inclusive agreement where a tenant vacates early without settling their rent (which the utilities are part of), the landlord may be able to recoup the loss from the deposit.

In some rare cases, if a tenant leaves a debt on a prepayment meter, the tenancy agreement may state that the cost can be deducted from the deposit. 

Sorting out end-of-tenancy utilities can be a hassle for both landlords and tenants. In most common tenancy agreements, responsibilities boil down to: 

• Tenants notifying suppliers, recording final meter readings, and providing a forwarding address so they can pay their final bill.
• Landlords notifying suppliers and arranging for a new account to cover any void periods. 

Both tenants and landlords/letting agents can make their life easier with One Utility Bill services:

• Notify handles the utilities admin for landlords, notifying suppliers of move-ins and move-outs, taking heaps of back and forth off the to-do list.
• A One Utility Bill package handles setup and closedown of utility accounts for tenants, as well as putting their choice of utilities into one easy monthly payment.  

Tenants, get a quote for easy bills.

Letting agents and landlords - Find out more about Notify