Investors,landlords and property owners are always looking for ways to decrease disputes that may occur between themselves and their tenants.Landlords should then seriously consider installing pre-paid electricity meters.
Although most properties these days do have these devices,some landlords have been a little slow to catch on.The device I am referring to is a meter installed in the home that one can purchase units for at predetermined outlets.The units are provided to the customer in voucher form and the unique sequence of numbers on the voucher are entered into the meter,the more units you buy the more electricity you will receive.The same basic principle as buying pre-paid airtime for a cellphone.
There are a couple of reasons this device is a good idea, one of which is that it almost eliminates landlord/tenant disputes over electricity bills.The tenant must in this case purchase their electricity as they use it up, instead of waiting for a bill at the end of each month.
The tenant will be able to observe how his habits directly affect his electricity consumption,because the meter allows you monitor how fast your electricity is being depleted.There can be no big bill to shock the tenant at the end of the month and no reason for a dispute with the landlord over the matter either.
Furthermore this also eliminates the possibility of the landlord being left with an unpaid bill if the tenant should default on his/her payments.This happens more often than one might think and always comes as a nasty surprise to the landlord.Making the landlord and tenant more directly involved in what he/she is responsible for according to the lease agreement will always make life easier for both parties.
I have landlord friends who have told me they believe installing a prepaid electricity meter has so positively affected landlord tenant relations that they have more tenants renewing their leases than before.
Whether or not you believe a prepaid meter will encourage tenants to renew their leases most landlords will will be happy with the knowledge that they won’t be getting irate tenants phoning them at the end of each month firmly in the belief that there has been a mistake with the bill.It is ,as always, a choice for every individual to make and what works for one may not work for everyone.
I wonder how many people do actually realise how “risky” it is to have the normal, monthly billing electricity system in your rental property.
ESKOM won’t go after your tenant, they will go after you.
any idea where people can purchase and install a prepaid meter, and what the costs are?
James
Buyers Agent
the only trouble with prepaid electricity is the nasty way it has of abruptly running out at, say, five past seven in the evening when there’s nowhere near to buy a new voucher!