The Importance of Meter Readings for Property Inventories

The energy crisis is an ongoing issue for both tenants and agents. As of April this year, household billed increased by a whopping 54%. And though the promise of the government's Energy Price Guarantee should curve further increases, many were still left with a fuel bill conundrum.

That is, prices remain the highest we have seen in recent years. For instance, if we compare prices ten years ago, in 2012, the average energy bills were £1000 a year. However, this was set to nearly £2000 by the end of 2022. So while prices are capped till the new year, when the guarantee ends in April 2023, we may see a jump to nearly £3000 a year.

With tenants being increasingly pushed into a tighter position, we can see that this has a knock-on effect on delayed or missed rent payments. It also hits landlords especially hard if they have a bills-included deal on their properties. So, what can landlords and agents do to mitigate these energy demands?

Be careful of switching Providers

The first thought that might occur to many is switching energy providers. But this is easier said than done.

Ofgem reports the wholesale cost of energy has grown exponentially in the last year. As a result, we have seen the number of supplier choices dwindle. In 2017, there were at least 70 active domestic electricity and gas suppliers in the UK. However, by the summer of 2022, this had dropped to just 24. Many went bust during 2021, with 14 suppliers exiting the market in just one quarter.

Ofgem further advises not to make the switch because there’s no telling when another supplier might be taken down. However, if you switch, you’ll likely be charged exit and entry fees. So if you can’t change providers, what can you do?

How accurate Inventory Metering can Help

For landlords and real estate agents, the best advice is to forget about switching providers for now. Instead, focus on ensuring you’re getting the best readings on your property and encourage tenants to do the same. Taking accurate meter readings and recording them in your inventory will help you manage disputes over the remaining credit on your account should the supplier go bust. As well as protecting yourself against energy chaos, you may discover places to improve energy efficiency.

Check out our free inventory report software if you want guidance on how to start.

Dan, 23 December 2022
The Importance of Meter Readings for Property Inventories

Post Titles