What is a tenant recharge?

Tenant recharge is common in property management when multiple tenants are required to pay part of the overhead costs. The landlord or property manager charges the tenant certain expenses related to the property they are renting. These expenses could include utilities (such as water, electricity, or gas), maintenance fees, or other shared costs that are incurred by the property owner or landlord and are subsequently passed on to the tenants. Separate metering, or full submetering of utility supplies, is essential to ensure a fair apportionment of cost between occupiers that reflects actual consumption.

Can a commercial landlord charge extra for electricity?

Costs should be recovered in accordance with the terms of the lease, which can allow for the payment of a reasonable administrative charge. If the lease clearly states that the tenant is responsible for electricity charges, the landlord can pass those costs on to the tenant. The recovery should state unit costs and the basis of the manager’s administration charge. Therefore, if an administration charge is levied by the manager, it should be transparent and clearly communicated to occupiers. With that exception, there should be no extra charges beyond the utility invoices billed by the supplier.

Do tenants get the £400 energy rebate?

The Energy Bills Support Scheme provided £400 off energy bills to all households over the period 1st October 2022 to 31st March 2023. For non-domestic customers, discounts were applied to the unit rates for electricity and gas for the period 1st October 2022 to 31st March 2023 and were variable based on the date the utility contract was signed. This scheme was called the Energy Bill Relief Scheme and all discounts on unit rates would have been passed on to tenants.

TENANT RECHARGING SERVICES UK | TENANT BILLING CONSULTANCY SERVICES UK

TENANT RECHARGING

Effortlessly allocate utility costs to tenants and optimise your revenue streams.

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TENANT BILLING CONSULTANCY SERVICES UK

ESTABLISH COMPREHENSIVE TENANT RECHARGING ARRANGEMENTS FOR YOUR PORTFOLIO

Work with our experienced Tenant Recharging consultants to manage the invoicing, allocation, and recovery of costs from tenants for shared utilities, maintenance, and other expenses.

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BENEFITS OF TENANT RECHARGING

Our software enables a reduction in service charge budgets by apportioning central plant operating costs in near real-time.
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Our metering and recharging methodologies conform to the
RICS code of conduct.
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The software we use ensures near real-time cost apportionment, taking
into account out of hours and asset degradation costs.
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We combine utility recharging with analytics to enhance building energy performance at the same time.
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We only install top tier open source metering and communications systems that operate regardless of our continued employment at a building.
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WHAT DO OUR CLIENTS SAY?

“Optimised really understood our requirements and showed great perseverance to source this first-of-a kind-deal.”

"The tendering of supply contracts is reliable and reporting is detailed and very useful for analysing the performance of properties and developing sustainability.”

FREQUENTLY ASKED QUESTIONS

What is a tenant recharge?

Tenant recharge is common in property management when multiple tenants are required to pay part of the overhead costs. The landlord or property manager charges the tenant certain expenses related to the property they are renting. These expenses could include utilities (such as water, electricity, or gas), maintenance fees, or other shared costs that are incurred by the property owner or landlord and are subsequently passed on to the tenants.

Separate metering, or full submetering of utility supplies, is essential to ensure a fair apportionment of cost between occupiers that reflects actual consumption.
Can a commercial landlord charge extra for electricity?

Costs should be recovered in accordance with the terms of the lease, which can allow for the payment of a reasonable administrative charge. If the lease clearly states that the tenant is responsible for electricity charges, the landlord can pass those costs on to the tenant.

The recovery should state unit costs and the basis of the manager’s administration charge. Therefore, if an administration charge is levied by the manager, it should be transparent and clearly communicated to occupiers. With that exception, there should be no extra charges beyond the utility invoices billed by the supplier.
Do tenants get the £400 energy rebate?

The Energy Bills Support Scheme provided £400 off energy bills to all households over the period 1st October 2022 to 31st March 2023.

For non-domestic customers, discounts were applied to the unit rates for electricity and gas for the period 1st October 2022 to 31st March 2023 and were variable based on the date the utility contract was signed. This scheme was called the Energy Bill Relief Scheme and all discounts on unit rates would have been passed on to tenants.

Allowing landlords and property agents to apportion utility costs accurately

Our unique combination of know-how, software and service offers a best in class utility recharging solution for managing agents and landlords. Our engineers, analysts and RICS specialists work together to ensure that you stay compliant and run the most efficient building for your occupiers.

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