Smart Meters for Landlords

As a landlord, you might be considering switching to a smart meter in your rental property. There are plenty of benefits to installing a smart meter, but it’s important that you understand how they work and your legal obligations to your tenants before taking action.

In this landlord smart meter guide, we’ll cover:

• What smart meters are
• The benefits of smart meters for landlords
• Things to consider before installing a smart meter
• Smart meter FAQs

Smart meters are part of the effort to create a smart grid; one part of the UK government’s plan to provide low-carbon, efficient, and reliable energy to Britain's households.

They provide real-time updates to energy suppliers and users about their energy usage, eliminating the need for estimated bills and meter readings and, in theory, changing the consumption habits of users.

There are plenty of advantages to installing smart meters for landlords, especially if you pay the energy bill on behalf of your tenants.

• Prevent disputes: Smart meters eliminate the need for manual readings, reducing the risk of disputes occurring over end of tenancy bills.
• Easier energy management: The data from your smart meter can be used to monitor energy consumption, identify any potential energy waste, and encourage your tenants to be more energy efficient.
• Prepayment systems: Most smart meters have a prepayment system that will allow you to manage energy costs and ensure tenants pay what they’ve actually used.
• Monitor during void periods: Smart meters help you keep an eye on your energy usage during void periods, ensuring you can spot anything that’s running your bill up at a time when costs should be low.
• Data for prospective tenants: Smart meters enable you to share accurate energy usage data with potential tenants, letting them know exactly how much their bill is likely to be.

Even if your tenants pay the energy bill themselves, it still might be worth switching to a smart meter. It might make your property more desirable to potential tenants who want accurate energy usage data or to adopt more energy-efficient practices.

Although there are lots of benefits to installing a smart meter, there are a few things you should take into consideration before doing so.

• Tenancy agreements: You may wish to make changes to your tenancy agreements that outline how energy costs will be managed, i.e. through prepayment or other methods.
• Tenant notice: If entry to the property is required to install the smart meter, you will need to make sure you’ve given the tenant at least 24 hours notice as required by UK law.
• Smart meter rollout: The government is aiming for 80% of homes in Britain to have smart meters by the end of 2025. However, it’s not compulsory to opt in.

Yes, if the energy bills are in the tenant’s name, they can choose to install a smart meter if they want to. However, you may wish to include a clause in your contracts that requires the tenant to ask permission before changing the meter on your property.

Where these clauses are present, you should not unreasonably withhold permission for switching meters. It’s usually in your best interest to grant permission anyway, as smart meters grant access to the best energy deals.