A Comprehensive Guide to Managing Household Bills in a Student Residence

As you embark on your university journey, the prospect of handling household bills may seem quite daunting. Fortunately, some student accommodations simplify this by including all bills in the rent. However, if your chosen residence separates these costs, you and your housemates will need to navigate the complexities of bill management. To assist you in this endeavor, we’ve compiled a set of valuable tips.

Understanding Utility Bills

Utility bills encompass expenses for essential services like electricity, gas, and water. They are recurring monthly costs that can vary depending on your usage, unless you’ve chosen an all-inclusive property where bills remain constant. Additionally, don’t forget about other expenses like broadband and TV licenses.

Getting Started

The first step is to determine how you’ll handle your bills. Opting for an all-inclusive accommodation simplifies budgeting, ensuring a fixed monthly payment and saving you from the hassle of setting up direct debits or contacting utility providers. However, if your accommodation doesn’t offer this option, you and your housemates must take the initiative.

How to Split Bills

There are several methods for dividing bills:

  1. Bill-Splitting Service: If handling bills sounds overwhelming, consider using a bill-splitting service. It automates bill distribution among housemates, making it convenient with a single monthly payment.
  2. Direct Debits: If you prefer managing bills yourself, set up direct debits. One person in the house is responsible for specific bills (e.g., electricity), and they can arrange for automatic monthly deductions.
  3. Joint Bank Account: Another option is creating a shared bank account, where each person contributes a set amount every month, and bills are paid from this account. However, this method carries some risk and should only be used if you fully trust your housemates.

Tips for Equitable Bill Sharing

To ensure fairness in splitting bills, consider these tips:

  1. Divide Equally: Divide bills equally among all housemates, the fairest and simplest approach. You can use bill-splitting apps for accurate calculations.
  2. Assign Responsibilities: Allocate specific bills to different housemates to ensure shared responsibility.
  3. Inclusive Accounts: Ensure all housemates’ names are on the accounts, so everyone is legally responsible for bill payment.
  4. Prompt Setup: Set up your bills promptly to avoid disruptions in essential services like electricity and water.
  5. Timely Payments: Pay your bills on time to avoid adverse effects on your credit rating and additional charges.

10 Simple Ways To Manage Your Money Better

Handling Individual Bills

If your accommodation doesn’t include all bills, you’ll need to set up individual accounts with the relevant suppliers. This entails researching and choosing the most cost-effective options, which is often a shared responsibility among your housemates.

However, if dealing with individual bills becomes too burdensome, consider accommodations that include all bills. This way, you’ll have a predictable monthly payment, and your accommodation provider will handle account setups and issues, leaving you free from the complexities of dealing with utility providers.

It’s essential to note that accommodations with separate bills may charge you based on your actual consumption, while all-inclusive properties offer a fixed monthly rate.

Setting Up Individual Bills

Here’s a brief guide for establishing individual accounts for various bills:

  1. Gas and Electricity: Choose an energy supplier and compare tariffs to save money. You’ll need to provide meter readings, so locate your electricity meter and record the numbers.
  2. Water and Sewerage: Contact your water provider to set up an account. They’ll inform you whether you’re on a metered or standard tariff.
  3. Internet: If you need an internet connection, select the best broadband package according to your usage.
  4. Council Tax: Full-time students in a household are usually exempt from council tax, so this is one bill you can often disregard.
  5. TV License: In the UK, you need a TV license to watch or record live TV or use BBC iPlayer. If you have a joint tenancy, one TV license covers the entire house. If your accommodation includes a TV, the landlord typically covers the TV license cost.