What Can (and Can’t) Be Included in HMO All-Inclusive Rent

When managing a house in multiple occupation, or HMO, one of the most common questions landlords ask is: What exactly should be included in an all-inclusive rent? It’s a fair question, especially with the cost of living rising and tenants expecting more for their money. Here we’ll break down what HMO landlords in Liverpool can include legally and sensibly in rent, what to avoid, and how to protect your profits while keeping tenants happy.

As an experienced HMO property management company in Liverpool, Portus Lets knows that getting this balance right is key to running a successful HMO.

What tenants expect to be included

If you’re advertising an HMO as “all bills included”, there are a few basics that tenants now assume will be covered:

• Gas and electricity
• Water rates
• Council tax
• Broadband/internet

Many tenants, especially students and young professionals, are attracted to the simplicity of one monthly payment. Including these services can make your rooms more appealing and help reduce void periods.

Optional extras that add value

Some landlords also include:

• Regular communal cleaning
• TV licence (if there’s a shared TV in communal areas)
• Basic Netflix or streaming subscriptions
• Gardening services

These aren’t mandatory, but they can boost the appeal of your property and attract more responsible tenants. At Portus, we often advise landlords to weigh up the cost of these extras against the type of tenant they’re targeting.

What shouldn’t be included

It’s generally not advisable to include personal use items like:

• Weekly food deliveries
• Personal laundry services
• Contents insurance for tenants’ belongings

These go beyond the remit of fair-use shared housing and could lead to confusion, disputes or worse, legal issues.

Utility cost management tips

Including utilities in the rent means you’re carrying the risk of fluctuating costs, especially gas and electricity. Here are a few ways to manage it:

• Use smart meters to monitor usage
• Switch suppliers regularly to get better deals
• Set up monthly usage caps or fair use policies
• Encourage energy efficiency with clear signage (e.g. turn off lights, don’t leave heating on all day)

If you’re worried about bills spiralling, you can also opt for capped tariffs. These give you predictable costs, but make sure tenants know what happens if usage goes over the cap.

Dealing with rising energy prices

Recent energy price hikes have hit landlords hard. While all-inclusive rents are still attractive, the profit margins are thinner. HMO property management in Liverpool has shifted towards:

• Setting clear fair use policies
• Reviewing rents every 6 to 12 months
• Using high-efficiency appliances and LED lighting
• Improving insulation to reduce heating demand

Tenants are generally understanding if you explain things upfront. Transparency goes a long way.

Setting fair use policies to avoid disputes

Fair use clauses are a landlord’s safety net. Make sure your tenancy agreement includes:

• A clear cap on energy and water usage
• What happens if the cap is exceeded
• Guidance on reasonable usage habits

This helps prevent the classic winter heating wars and stops your profit from vanishing into a boiler running full blast all day!

Example rent breakdown

Here’s a quick example of what your breakdown might look like:

Monthly rent: £600

• £200: Room rental
• £100: Council tax
• £80: Gas and electricity (capped)
• £40: Water
• £20: Internet
• £20: Communal cleaning
• £20: Contingency/profit buffer

This kind of transparency helps when setting rents and reviewing your expenses. A good HMO property management company in Liverpool can support you with regular rent reviews and budgeting advice. Call us on 0151 329 3538.

Keep it legal and profitable

Including bills doesn’t mean absorbing every cost. Done well, it can simplify life for both you and your tenants. Just be sure to:

• Be transparent about what’s included
• Keep your costs under review
• Use fair use policies
• Avoid offering unnecessary extras that eat into your margins

Need help managing your HMO more efficiently?

At Portus, we specialise in HMO property management in Liverpool If you’d like to chat about rent structure, fair use terms, or anything else HMO-related, just give us a call on 0151 329 3538 or email us at  hello@portuslets.co.uk. We’re here to make your HMO run smoothly – and stay profitable.