What is included in all-inclusive rent in an HMO style accommodation?
HMO Style Accommodation
HMOs or House on Multiple Occupants are intended for use as an accommodation by 2 or more unrelated tenants in either a bungalow, flats, or converted houses.
Most HMOs are rented out by private landlords, but some councils and housing associations own and run them too.
HMO style accommodations are usually cheaper because you’re sharing the rent with a number of other tenants. In addition, you usually share the bills and maintenance charges, so this can also save you money on food and utilities. It’s a great way to improve your budgeting skills while living with others.
What is all-inclusive rent?
A common type of rental agreement, popular among students and contractual workers. An all-inclusive rent agreement includes the rent and also utilities such as gas, water, electricity, parking and internet. The tenant pays for these through a single payment each month.
All-inclusive rent agreements allow the landlord to charge above the range of normal rent.
What is non-inclusive rent?
The term “non-inclusive rent” is used to describe a rental rate that represents the rental charges of the rental unit but does not include other costs that maybe incurred in connection with the rental unit, like utilities etc. Non-inclusive rent is usually found in leases for commercial or industrial buildings, where the tenant pays for utilities, property taxes and insurance, as well as maintenance and upkeep of the building.
The Pros and cons of all-inclusive rent
Utility charges are included in the monthly rental price. This is called an “all-inclusive” rent agreement because it includes everything except for your phone bill. Some landlords even include basic cable with your monthly rent!
All-inclusive rent agreements make it easier to budget your monthly expenses. You only need to plan for one payment instead of juggling multiple payments to different vendors. This can also save you money by reducing late fees and giving you a lower overall rate on your utilities.
The primary benefit of an all-inclusive rent agreement is convenience. It’s often easier to pay one bill every month than several different bills with varying due dates throughout the month.
- Renting an apartment has never been cheaper.
- It can make budgeting much easier as you will always know exactly how much money you will need each month.
- When you move out of the property you also won’t need to get any final meter readings or worry about getting deposits back from suppliers.
- If your bills are included in your rent then there is more chance that you will be able to claim housing benefit.
- People have more time to do other things because they’re not spending that time paying bills and receiving mail.
- Charging separately for utilities is impossible in practice. It’s hard enough to figure out how much electricity each tenant uses; how do you apportion the total water bill fairly.
- Rent includes not only electricity and heating, but also internet access and cable TV.
- If the landlord goes through all the hassle of setting everything up and then automatically collects money from all tenants each month that saves time and is probably a better deal than what tenants could get on their own.
- It’s a one time monthly payment, which makes it easier to manage in the monthly budget.
- Plus no need to manage the paperwork and cheques involved in paying for utilities separately.
- Maybe you are a careful person, who turns off the lights when you leave a room and doesn’t leave the water running while you brush your teeth. But maybe your housemates aren’t.
- If you share utility payments, you’ll end up paying for their carelessness whether you like it or not.
- It can sometimes work out quite expensive for the tenant if there are many people living in the house who use lots of energy or water (e.g. lots of showers).
- There’s no guarantee you’ll recover all your costs through higher rents.
Services included in All-inclusive rent
The following is a list of services included in All-inclusive rent.
- Basic Cable TV Service
- Weekly cleaning service
- Laundry facilities on site
- 24/7 reception
- Proximity card to enter the building
- Room lock with personal code
- Free offsite Parking
- Use of all common areas within the building (lounge, kitchen, TV room);
In addition to money-saving measures, as well as time-saving practices, living in an HMO offers a variety of lifestyle benefits. It provides easy access to cleaning products and tools, comes with a weekly cleaner service, and features study areas and social opportunities. Whether you are looking for more convenience or are interested in minimizing your environmental footprint, living in an HMO can be the right solution for you. Of course, many HMOs charge more upfront costs than other types of housing options. However, this article should help you find an economical option that is best for you.