Understanding Utility Bills in HMOs: Part 2 - Practical Tips to Manage Costs

In Part 1, we discussed the many challenges of utility bills in HMOs, from rising energy prices to tenant behaviour as that can drive up costs. Although utility expenses are a constant factor, there are ways to manage them effectively and make your HMO more profitable. Here are several strategies you can use to control utility costs while also creating a comfortable, eco-friendly environment for your tenants.

1. Install Smart Heating Systems

A powerful way to control heating costs in HMOs is by installing smart systems like Inspire, Term-O-Stat, or Hive. These systems allow you to set a constant, energy-efficient temperature throughout the house. Tenants can still adjust the temperature if they need extra warmth, but only for a short time by hitting a “Boost” button, which increases the heat for just an hour. This approach helps prevent tenants from turning up the thermostat unnecessarily or leaving the heat on for extended periods, which is especially helpful during winter. By using smart systems, you’ll be able to keep the house comfortable while reducing wasteful heating practices.

2. Educate Tenants on Energy Efficiency

A small effort to educate your tenants on energy efficiency can make a big difference in your utility bills. Let your tenants know how their energy usage affects costs, both financially and environmentally, and offer tips to help them conserve energy. Encourage habits like turning off lights when leaving a room, reducing the heat when they’re not home, and avoiding opening windows while the heat is on. When tenants understand how their actions impact both the bills and the environment, they’re more likely to adopt energy-saving habits.

3. Insulate Your HMO for Better Efficiency

Improving the insulation in your HMO can have a significant impact on heating and cooling costs. Proper insulation helps keep heat in during the winter and cool air in during the summer, reducing the need for constant temperature adjustments. This not only improves your property’s EPC (Energy Performance Certificate) rating but also makes it more energy-efficient, which can result in substantial savings over time. In our experience, insulated HMOs consistently show lower utility costs, making insulation a valuable investment for any landlord looking to reduce expenses.

4. Add Eco-Friendly Upgrades like Solar Panels

If you’re ready to make a larger investment, consider eco-friendly upgrades such as solar panels. Although the initial installation costs can be high, solar panels can reduce your dependency on grid electricity and lower your energy bills in the long run. Besides offering potential savings, eco-friendly upgrades make your HMO more attractive to environmentally conscious tenants and enhance your property’s value. Over time, solar panels and other green technologies can make your property more efficient and reduce the strain of rising energy costs.

Conclusion

Reducing utility costs in HMOs may seem challenging, but with the right strategies, you can make a noticeable difference. By investing in smart heating systems, educating tenants, enhancing insulation, and considering eco-friendly upgrades like solar panels, you can take control of your bills. These steps not only save money but also make your HMO more sustainable and appealing to tenants. Taking proactive measures means a more profitable HMO and a greener, more responsible approach to property management.