House conversion

jibby888 · Posted: Tue Sep 11, 2007 5:48 pm Post Subject: House conversion

Has anyone got experience in converting a house into two self-contained flats? If so, is it possible to install two prepay electric meters?

Steve · Posted: Tue Sep 11, 2007 5:52 pm Post Subject:

Like these?

jibby888

Yes. These meters are the type im thinking of. Do you think a qualified SPARKY, could split the main feed into the house to Prepay meters upstairs & downstairs?

plugwash · Posted: Tue Sep 11, 2007 10:29 pm Post Subject:

They could, but it may be better to go to the electricity board and get them to give the properties seperate supplies, it will cost more upfront but it will mean you won't have to play electricity reseller and prospective tennants will have the confidence of a direct contract with the electricity supplier (I personally would be very dubious about taking a flat with landlord metered electricty due to the potential for overcharging).

Space cat · Posted: Wed Sep 12, 2007 9:05 am Post Subject:

Plugwash is dead right. Unless you are hell bent on selling electricity for profit, being the middle man is a mug's game. The hassle of collecting the money is something you can do without, especially if the sums do not add up. Did you set it up wrong or did you forget to reset it when your supplier put the price up - or did some clever tenant find a way to fool the meter? Let somebody else do the worrying.

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jibby888

I have no interest in selling electric for a profit. I heard from somewhere the installation of an additional meter could cost up to £800. I just wondered if the cost is justifyable, as my target rental market are from overseas and will use the accomadation only to rest while they are out working 60-70hrs per/week.

I've capped off all gas to the house and the water bill will be included in the rental income.

Do you think i am trying to cut corners, or is this a pragmatic approach to being a landlord?

ricicle · Posted: Wed Sep 12, 2007 8:34 pm Post Subject:

You cannot sell electricity for profit.The only way you can make money from it is if it is part of an 'all in' price.

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Space cat · Posted: Wed Sep 12, 2007 10:05 pm Post Subject:

Is this a short term project? If you intend to turn the two flats back into a single house in a few years time I can understand your logic but --

If you intend to be a landlord for the foreseeable future then ask yourself how many hours you will spend over the years collecting the money, checking it off against your electric bill to ensure that you are charging the right amount and making adjustments to those meters every time the price of electricity goes up or down.

Quote:

I've capped off all gas to the house

Was that to avoid the cost of a second meter too? Or was it to avoid the need to have gas appliances tested? I can see the cost advantage there; the drawback is less obvious.

1) Electric heating costs more to run than gas.
2) You are competing in a free market with landlords who have flats with lower heating costs.
3) You will have to charge a lower rent.

Quote:

Do you think i am trying to cut corners, or is this a pragmatic approach to being a landlord?

Sorry but in my personal opinion you are cutting corners.

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plugwash · Posted: Thu Sep 13, 2007 8:14 am Post Subject:

not to mention the ammount of money you could lose if your privately owned meters get bypassed to run a cannibis plantation. by spliiting the service you make that sort of thing the suppliers problem.

Also how are you planning to heat theese flats? storage heaters will greatly complicate your split metering setup and direct electric heaters are an extremely expensive way to heat so if they were the only thing a property had I wouldn't even consider it.

Also with what you propose for water if a tennant is caught wasting lots of water and you are forced onto a water meter because of it or for some other reason you will be in a real mess.

you are cutting corners big time.

bernardgreen

The comment about the tenant by-passing their meter and you having to pay for the electricity is very valid. It is not obvious as the tenant will allow the meter to count up a few units to make it look normal use. But the units that went via the by-pass will have gone through your meter and you will have to pay for them.

Even if you are targeting the lower end of the market do not forget that the tenants may be from a country where ripping of landlords is common practice and they may be skilled at it. Sometimes it is organised. If you are not resident in the building you may not know about massive bills or expense building up until too late.

While you learn the tricks you could be losing a lot of money.

jibby888 · Posted: Thu Sep 13, 2007 8:51 pm Post Subject: House conversion

Your points are noted. Thanks. "bernardgreen" I'd like to believe tennets are not that crafty in fiddling meters but we live in the real world and anything is possible.

plugwash the flats will not house a canabis plantation, the two flats will be double glazed, and drylined + insulated (floor + roof) and draftproofed. I hope to inspire the prospective tennents to be more prudent and less wastefull.

Space cat It may sound crazy, but this conversion is my first housing project and I am using it to learn different aspects of refurbisment & diy. For the forseable future, I am unsure whether to be a landlord or small time developer. But I am sure, this is the field of work which interests me.

Prior working exp. lends me the idea, I will not have the time to followup adjustments to meters on reaction to energy markets.

I capped off the gas to simplify/reduce/maintain no. of services into the property.

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Does anyone have a ballpark cost on additional meter installation, (South Yorkshire)?[/quote]