Electric meters for landlords
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3
min read
Electric meters can do more than measure electricity use in a building. They can help you manage costs, maintain transparency with tenants, and ensure compliance with rental regulations.
Whether you own one rental property or several, let tenants organise their bills or charge for utilities included; understanding electric meters can help you save time and money.
Whether you own one rental property or several, let tenants organise their bills or charge for utilities included; understanding electric meters can help you save time and money.
Disclaimer:
Managing rental properties is a complex business. At Hiscox, we want to see your investments thrive. Our articles offer insights into property management and landlord best practices. But these articles aren't professional advice. To find out more about a subject we cover here, please seek professional advice.
Types of electric meters
Explore the various electric meter types to find the right options for your needs.
Standard meters
Standard meters show electricity usage in kilowatt hours (kWh) and require manual monthly readings. They have a mechanical display featuring dials or a spinning disc that rotates in line with energy use.
Since they do not rely on a network connection to function, standard meters work even during internet or signal issues. As a result, they can be more reliable and easier to maintain.
Prepaid meters
Prepayment, or ‘pay-as-you-go’, meters let you pay for electricity in advance using a key or card. You can buy credit for your key or card at various top-up points, such as local shops and Post Offices.
Prepaid meters can help to simplify bills and reduce the risk of missed payments.
Previously, households using prepayment meters paid more on average for their energy than those paying by direct debit. However, the prepayment premium (external link) was scrapped in 2023.
Smart meters
Smart meter readings are automatically sent directly to your supplier. Smart meters typically come with a digital display that shows how much energy you’re using and what your usage will cost. This can mean more accurate billing and can help tenants manage their energy consumption more effectively.
There can also be various benefits to smart meters for landlords managing utilities-included properties.
For example, you:
- won’t need to access properties or rely on tenants for accurate meter readings
- can track consumption patterns across your properties, helping you budget
- can easily monitor if any utilities are being used during void periods, helping you cut costs and eliminate waste.
Are landlords responsible for electric meters?
Landlords are responsible for ensuring that electric meters in their rental properties are properly installed and maintained, meet safety standards and are approved under GB national legislation (external link) or the Measuring Instruments Directive (external link) (MID).1 (external link)
For all meter types, you may need to:
- Include the meter type and location in the property inventory
- Take meter readings and photos at the start and end of tenancies for your records
- Ensure any meter cupboards or access points are safe and well-maintained.
In terms of payment, your tenancy agreement should outline who’s responsible for utilities – including electric bills.
The tenant is typically responsible for paying utility bills like electricity, gas, water, and internet during their tenancy. This means they will set up accounts with utility providers in their name and pay their bills directly.
However, in some rental agreements, the landlord might include utility bills in the rent. This is more common in shared accommodations where the landlord manages the utility accounts and the tenants pay a higher rent – which includes a service charge – to cover utility costs.
You might want to check the tenancy agreement terms to understand who is responsible for utility bills in your rental property.
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