Energy prices are set to be lower this winter compared to the previous year, but not by much. Other utility prices also continue to increase, including council tax and the cost of an internet connection.

Against this backdrop, tenants are increasingly searching for all-inclusive rents when choosing a home. In 2022, searches for a home with “bills included” were 57% higher than the previous year.

Hombox's Head of Partnerships and Onboarding Mike Delap said the main reason for this increase is the payment certainty that combining bills can provide. Tenants know what they will pay each month and can budget accordingly.

But combining bills provides other benefits to both the tenant and the landlord. Delap spoke to Bisnow about the five challenges facing residents and landlords and how combining utility bills can tackle them.

How To Set Up A Utilities Provider

When a tenant moves into an apartment, one of their first tasks is to create an account with the right utilities providers. This isn’t always straightforward.

“Often, a resident doesn’t know who to call,” Delap said. “They might not know who a utility provider is until they start receiving notifications and postal bills, which can be several weeks into a tenancy. This creates a real sense of uncertainty and makes it hard to predict costs.”

International students or tenants may find it particularly difficult to understand how to set up utilities. Regulations differ from country to country, such as obligations for paying council tax.

Homebox acts as a hub of information, as well as a service to set up utilities billing. It provides tenants with all the information they need about which utilities a landlord has brought into the package and how to opt in. This can include visiting apartment blocks to hold a welcome session.

If a tenant goes directly to Homebox, the business has a team ready to answer questions. They can either switch the tenant to Homebox’s preferred suppliers or liaise with the supplier of their choice.

Spending Considerable Time On The Phone

In the case of an internet connection, tenants are usually keen to be up and running with a provider quickly. This is even more important now that many people work from home.

However, getting connected can lead to hours on the phone, Delap said. Often, a tenant may have to call more than once and will certainly have to speak to each provider separately. This is one of the reasons tenants give for using Homebox.

“We offer a one-stop shop from the beginning, finding the right provider and switching them to their preferred provider, if that needs to happen,” Delap said. “They don’t need to get involved.”

Time-Consuming Void Period Management

To a letting agent, managing void periods can be time-consuming. It can result in excess paperwork, not least in the area of utilities management, Delap said.

“When you want a quick switch between tenants with only a gap of two weeks, perhaps, sorting out utilities can be a thankless task,” he said. “Or if you're trying to lease an apartment, it can take energy that could be better spent put into marketing.”

Homebox provides copies of bills for electricity, heating, water and council tax to simplify the process. The team carries out checks to ensure they are accurate, using the correct legal entity and the right meter readings.

Not Knowing If Tenants Are Paying

If a tenant directly pays their utility bills, the landlord seldom has any insight into whether bills are actually being paid. If a property owner uses Homebox’s solution, they can view tenancies via the portal that gives the status of all payments.

“Although landlords are generally not liable if a tenant doesn’t pay utility bills, this can create problems,” Delap said. “If the tenant leaves without paying bills, this could be yet another thing for landlords to sort out. It could result in a utility being cut off for an apartment.”

Homebox can see whether or not a tenant is paying or has overpaid using the online portal. A dedicated account manager can then speak to the tenant.

Spending Time Handling Queries

A property manager is always looking to improve the tenant experience, Delap said. This means handling queries effectively, which can include questions about the best utilities providers or how to get the internet up and running. A property team’s time can quickly be absorbed by answering questions.

“If we handle utilities for a property manager, they can focus on the two aspects of apartment management that they need to: making the experience for residents as seamless as possible and bringing in more tenants,” Delap said. “If the team knows bills are handled, they can focus on running their business.”

This article was produced in collaboration between Homebox and Studio B. Bisnow news staff was not involved in the production of this content.

Studio B is Bisnow’s in-house content and design studio. To learn more about how Studio B can help your team, reach out to studio@bisnow.com.