Based on checking the website, Landlordmetering.com presents a service designed to simplify electricity management for landlords with multi-tenant properties.

Their core offering revolves around smart electric sub-meters that create “virtual MPANs” for individual units, aiming to eliminate the need for multiple, costly network connections.

The company handles meter management, payment collection from tenants, and then refunds the aggregated cost of electricity to the landlord monthly.

This system intends to reduce the administrative burden on landlords, mitigate the risk of tenant arrears by using a prepayment model, and provide a 24/7 tenant helpline.

For landlords grappling with the complexities of utility billing in HMOs, flat conversions, or commercial units, this service appears to offer a streamlined approach.

However, from an ethical and Islamic perspective, certain aspects of this model, particularly the concept of a “modest profit” added to the electricity cost and the structure of fees, warrant careful consideration. While the service aims to alleviate landlord burdens, any system that adds an arbitrary margin to essential services like electricity, even if termed “modest,” can be viewed as an increase without a tangible, value-added service equivalent to the additional charge, potentially bordering on riba interest/usury or an exploitative practice if not structured meticulously. True Islamic finance emphasizes fair exchange and avoids unearned increments. A better alternative for landlords would be to ensure complete transparency with utility costs, perhaps by directly passing through the exact utility bill or by including a clearly defined, fixed utility charge within the rent, ensuring it covers actual costs without any hidden profit margins that could be deemed unfair. Additionally, for tenants who are already facing “energy poverty,” any additional charge on top of their actual consumption could exacerbate their financial strain.

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IMPORTANT: We have not personally tested this company’s services. This review is based solely on information provided by the company on their website. For independent, verified user experiences, please refer to trusted sources such as Trustpilot, Reddit, and BBB.org.

Table of Contents

Landlordmetering.com Review & First Look

Landlordmetering.com positions itself as a modern solution for landlords facing the challenge of managing electricity payments across multiple tenants in a single property.

The website immediately highlights the significant cost savings associated with avoiding multiple network connections MPANs, stating that each new connection can cost “£000s.” Their proposed alternative is a smart sub-metering system that creates “virtual MPANs,” aiming to streamline utility management and financial collection.

Core Proposition: Virtual MPANs and Cost Savings

The central appeal of Landlordmetering.com is its ability to create “virtual MPANs” using smart electric sub-meters.

This concept is designed to bypass the traditional, often expensive, process of installing individual electricity network connections for each unit in a multi-tenant property.

The company claims this approach can save landlords “thousands on electricity network connections,” making it an attractive option for property developers and landlords converting properties into multiple dwellings.

Financial Benefit: The primary benefit emphasized is the reduction in upfront capital expenditure for utility infrastructure.
Administrative Efficiency: By centralizing billing and payment collection, landlords are reportedly freed from the burden of chasing tenants for utility payments.
Risk Mitigation: The prepayment model aims to significantly reduce the risk of tenants accumulating large arrears.

Target Audience and Property Types

The service is explicitly marketed towards a diverse range of property types and landlords, indicating a broad applicability. This includes:

HMOs Houses in Multiple Occupation: A common scenario where managing individual utility bills can be complex.
Flat Conversions: Properties undergoing conversion into multiple residential units.
Permitted Development Conversions: Specifically, offices converted into residential units, highlighting a niche market.
Industrial Parks and Office Blocks: Demonstrating their capacity to handle commercial sites as well.
Existing Properties with Old Sub-Meters: The service can also be used to upgrade or replace outdated sub-metering systems.

The website mentions successful installations on “over 500 sites,” suggesting a proven track record.

This scale of operation could imply a robust system, but landlords should still perform due diligence.

Landlordmetering.com Pros & Cons

Based on the information presented on Landlordmetering.com, there are several stated advantages for landlords, primarily focused on convenience and financial efficiency.

However, from an ethical perspective, especially concerning Islamic principles, there are significant disadvantages or points of concern that need careful consideration. Chemswhite.com Reviews

Stated Pros from the website’s perspective

Reduced Upfront Costs for Landlords: The website emphasizes saving “£000s” by avoiding new network connections MPANs. This is a compelling proposition for property developers and landlords, as traditional utility connections can be a substantial expense.
Simplified Utility Management: Landlords are freed from the administrative burden of calculating, chasing, and collecting individual electricity payments from tenants. Landlord Metering handles the collection and refunds the aggregated amount.
Reduced Arrears Risk: The prepayment model, where tenants top up their electricity credit in advance, significantly minimizes the risk of tenants falling into debt for their utility usage. This is a major benefit for cash flow management for landlords.
24/7 Tenant Helpline: The provision of a dedicated freephone helpline for tenants means landlords are less likely to be disturbed by tenant queries or issues related to electricity. This offloads a significant support burden.
Tamper-Proof and Reliable Meters: The company claims their meters are highly tamper-proof and automatically alert them to fraud attempts, ensuring accurate billing and deterring illicit consumption. They also promise to look after and replace faulty meters for life.
Fair Pricing Philosophy: The website states they aim for a “modest profit” and recognize their social responsibility towards tenants in “energy poverty.” They claim to run meters cheaper than a landlord could manage themselves.

Significant Cons Ethical Concerns & Potential Drawbacks

While the website highlights operational efficiencies, the financial model warrants scrutiny, particularly from an ethical standpoint.

“Modest Profit” and Margin on Essential Services: The claim of adding a “margin of 2p per kWh” on top of the daily standing charge 26.5p per day for tenants raises concerns. Charging a profit on an essential utility like electricity can be viewed as an indirect form of riba interest/usury or an unjust enrichment if the profit is not directly tied to a tangible, value-added service proportional to that margin. In Islamic finance, profit should arise from legitimate trade or effort, not from merely acting as a conduit for an essential service while adding a mark-up. This practice can burden those already struggling with “energy poverty.”
- Better Alternative: Instead of adding a profit margin, a truly ethical approach would involve transparently passing on the exact cost of electricity to tenants, perhaps with a clear, fixed administrative fee that covers the actual operational costs of the sub-metering service, without an ongoing percentage-based profit on consumption.
Prepayment Model for Vulnerable Tenants: While reducing arrears risk for landlords, a strict prepayment model can be challenging for tenants facing financial hardship. Running out of credit could lead to sudden disconnections, impacting basic living conditions, especially for those in “energy poverty.”
- Better Alternative: Implement flexible payment options or grace periods, and provide robust support mechanisms for tenants who genuinely struggle to top up, rather than an immediate cut-off. Ensuring access to essential services should be prioritized.
Lack of Direct Utility Contract for Tenants: Tenants do not have a direct contract with the primary utility supplier. Their relationship is with Landlord Metering. This could limit their rights as consumers, such as the ability to switch suppliers or access energy efficiency grants directly from utility companies.
- Better Alternative: Explore models where tenants, while using sub-meters, retain some direct rights or access to information typically available to direct utility customers.
Security Deposit Requirement: Landlords are required to pay a “one off security deposit of £120 per meter” or higher for smaller orders. While refundable, this is still an upfront cost that ties up capital.
Additional Charges for Cash Top-offs and Optional Cards: The website mentions “small additional charges” for cash top-offs at Payzone/Post Office and for optional payment cards. While these might cover their costs, they add to the tenant’s overall expense, particularly for those who rely on cash payments.

In summary, while Landlordmetering.com offers practical solutions for landlords to manage utilities, the ethical implications of profiting from essential services and the potential impact on financially vulnerable tenants need to be thoroughly weighed against Islamic principles of fair dealing and avoiding riba. Landlords should seek alternatives that prioritize transparency, direct cost pass-through, and tenant welfare over profit maximization from utility consumption.

Landlordmetering.com Alternatives

Given the ethical considerations surrounding Landlordmetering.com’s business model, particularly the added margin on electricity consumption, landlords seeking to manage utilities in multi-tenant properties should explore more transparent and ethically sound alternatives.

These alternatives can still provide efficiency and cost savings without potentially burdening tenants with additional, non-cost-reflective charges on essential services.

1. Direct Utility Billing Individual MPANs

The most straightforward and transparent method, though often the most expensive in terms of initial setup, is to ensure each unit has its own dedicated electricity meter and MPAN Meter Point Administration Number.

How it Works: Each tenant receives their own bill directly from a licensed energy supplier.
Pros:
- Full Transparency: Tenants pay exactly for what they consume, directly to a regulated supplier.
- Consumer Rights: Tenants have all consumer rights, including the ability to switch suppliers, complain to the Energy Ombudsman, and access government support schemes.
- No Landlord Involvement in Billing: Landlords are completely removed from the billing and collection process, freeing up significant administrative time.
- Ethically Sound: No intermediary profit on essential services.
Cons:
- High Setup Costs: Installing multiple new MPANs can be prohibitively expensive, as Landlord Metering rightly points out.
- Space Requirements: Each meter requires physical space for installation.
- Feasibility: May not be possible in all older conversions or HMO layouts without significant electrical work.

2. Inclusive Rent with Fair Utility Allocation

For landlords who prefer an all-inclusive rent model, a transparent and equitable approach is crucial.

This involves clearly communicating how utility costs are factored into the rent.

How it Works: Landlords incorporate an estimated or fixed utility charge into the monthly rent. This can be based on historical consumption, property size, or number of occupants.
- Simplicity for Tenants: One single payment simplifies budgeting for tenants.
- Predictable Income for Landlords: Consistent rental income, regardless of monthly utility fluctuations though landlords bear the risk of higher-than-expected usage.
- Reduced Administrative Burden: No separate utility bills to track or chase.
- Potential for Over-Consumption: Tenants may be less mindful of usage if costs are fixed, leading to higher bills for the landlord.
- Fairness Concerns: It can be challenging to ensure fairness among tenants with varying consumption habits.
- Ethical Consideration: The “fixed” portion of the rent covering utilities should be a reasonable estimate of actual costs, not a profit center.
- Better Alternative: To enhance fairness, landlords could use simple, non-smart sub-meters for internal monitoring and adjust the utility portion of the rent periodically based on actual collective usage, while explicitly stating this arrangement in the tenancy agreement. The goal should be to cover costs, not profit from consumption.

3. Third-Party Sub-Metering Services Cost-Pass-Through Model

Some companies offer sub-metering services where they handle the installation and maintenance of meters, but the billing model is strictly a pass-through of actual costs, perhaps with a transparent, fixed management fee.

How it Works: A third-party company installs and maintains sub-meters. They might collect data and provide billing information to either the landlord or the tenants directly. The key distinction from Landlordmetering.com is the absence of an added profit margin on the consumption itself.
- Efficiency: Automates meter reading and potentially billing.
- Accountability: Tenants pay for what they use.
- Reduced Landlord Involvement: Similar administrative relief as Landlordmetering.com.
- Ethically Superior: If the model only involves a fixed service fee and direct pass-through of utility costs, it aligns better with ethical principles by avoiding profiting from an essential service’s consumption.
- Finding the Right Partner: Requires thorough vetting to ensure transparency and a strict cost-pass-through model.
- Still an Intermediary: Tenants still don’t have a direct relationship with the energy supplier.
- Potential Fees: There will still be service fees for the sub-metering company, which need to be clearly communicated.

4. Smart Metering and Manual Allocation DIY or Hybrid

For landlords with a smaller number of units or those who prefer more control, smart sub-meters can be installed and managed more directly.

How it Works: Landlords purchase and install smart sub-meters often readily available online. They then either manually read the meters and bill tenants based on actual usage and the main utility bill, or use a simple software solution to assist.
- Full Control: Landlord retains direct control over the system and billing.
- Transparency: Tenants can often see their own consumption data directly from the smart meter display.
- Cost-Effective for Setup: Potentially lower initial costs than full MPAN installations.
- Ethically Sound: Direct pass-through of costs, with any administrative charge being a separate, clear fee.
- Time-Consuming: Requires ongoing landlord involvement in reading meters, calculating bills, and collecting payments.
- Technical Knowledge: Some understanding of smart meter operation may be required.
- Dispute Potential: While usage is clear, disputes over shared service charges or overall bill allocation can still arise.

When considering alternatives, the paramount concern should be transparency, fairness, and avoiding any practice that resembles riba or exploitation of tenants, particularly regarding essential services. The goal should be to facilitate fair utility management for tenants while simplifying the process for landlords, rather than generating additional profit from their consumption. Filecrush.net Reviews

How to Cancel Landlordmetering.com Subscription

Based on the information available on the Landlordmetering.com website, the process for canceling a “subscription” or ending their service isn’t explicitly detailed in an easily discoverable FAQ or terms section.

However, the presence of a “No-Quibble 1 Year Guarantee” on the deposit suggests a potential cancellation mechanism within the first year.

For any service related to utility management, it’s crucial to understand the exit strategy to avoid disruptions or unexpected fees.

Key Considerations for Cancellation

Contractual Agreement Review: The first and most critical step for any landlord is to review the initial service agreement or contract signed with Landlordmetering.com. This document should outline:
- Notice Period: The required notice period for termination e.g., 30, 60, or 90 days.
- Termination Fees: Any penalties or fees associated with early termination, especially if the service is canceled before a minimum contract term expires.
- Meter Removal/Ownership: What happens to the installed sub-meters upon cancellation? Are they removed by Landlord Metering, or do they become the landlord’s property? Is there a cost for removal?
- Deposit Refund Policy: How and when the initial security deposit is refunded upon proper termination.
- Transition Process: How the transition of utility management back to the landlord or to a new provider will be handled to ensure uninterrupted service for tenants.
Direct Communication: Given the lack of explicit online instructions, direct communication with Landlordmetering.com is essential.
- Contact Information: Use the provided contact details:
  - Email: [email protected]
  - Phone: 01234 484 444
- Formal Written Notice: Always follow up any phone conversations with a formal written notice email or postal letter to create a paper trail. This is crucial for proving that the required notice period was given.
- Request Confirmation: Ask for written confirmation of the cancellation and details regarding the final billing cycle, deposit refund, and meter arrangements.
Tenant Communication and Transition Plan: A smooth transition is vital to avoid disrupting essential services for tenants.
- Inform Tenants: Landlords must inform tenants well in advance about the change in utility management, providing clear instructions on how they will pay for electricity moving forward e.g., direct to landlord, new sub-metering provider, or new direct utility contract.
- Credit Balance: Ensure any remaining credit balance on tenants’ Landlord Metering accounts is either refunded to them or transferred to the new system. This aspect should be clarified with Landlord Metering during the cancellation process.
Deposit Guarantee: The website mentions a “No-Quibble 1 Year Guarantee” on the deposit.
- Purpose: This guarantee implies that if a landlord is dissatisfied within the first year, they might be able to cancel and get their deposit back without significant hassle.
- Verification: Landlords should verify the exact terms of this guarantee, such as any conditions for eligibility or exclusions, by contacting the company directly.

In summary: While Landlordmetering.com simplifies initial setup for landlords, the cancellation process, like with any utility-related service, demands careful adherence to contractual terms and proactive communication to ensure a smooth transition for both landlords and tenants. Always prioritize clear, written communication and retain all documentation.

How to Cancel Landlordmetering.com Free Trial

The Landlordmetering.com website does not explicitly mention a “free trial” in the conventional sense, where a landlord would use the service for a limited period without charge before committing to a full subscription.

Their pricing model, as described on the website, involves a “one off security deposit of £120 per meter” which is presented as the initial financial commitment, rather than a trial. Unaallavolta.com Reviews

However, the “No-Quibble 1 Year Guarantee” on this deposit could function as a de facto trial period, offering a safety net for landlords to assess the service without significant long-term financial risk within the first year.

This guarantee suggests that if a landlord is not satisfied within 12 months, they can likely terminate the service and receive their deposit back.

Understanding the “No-Quibble 1 Year Guarantee”

This guarantee appears to be the closest equivalent to a risk-free trial period offered by Landlordmetering.com.

Here’s how it likely works and what to do if you wish to “cancel” within this period:

Purpose: The guarantee aims to instill confidence in landlords by assuring them that their initial deposit is protected if the service does not meet their expectations within the first year.
Eligibility: It applies to the initial security deposit paid per meter £120 per meter, with variations for smaller orders.
Action if Unsatisfied: If a landlord decides within the first year that the solution is not right for them, they would likely initiate a cancellation process, triggering the deposit refund under this guarantee.

Steps to “Cancel” During the Guarantee Period

Since there isn’t a separate “free trial” cancellation process, you would follow the general cancellation procedures, specifically referencing the 1-Year Guarantee.

Review Initial Agreement: Always start by checking any signed agreements or terms and conditions provided at the outset of the service. This document should detail the specifics of the 1-year guarantee and the process for invoking it.
Initiate Contact with Landlord Metering:
- Method: It’s best to use a formal, written method of communication, such as email, so you have a record. You can also call to discuss but follow up in writing.
- Contact Information: Use [email protected] or call 01234 484 444.
- State Intent Clearly: Explicitly state that you wish to terminate the service and invoke your “No-Quibble 1 Year Guarantee” for a full refund of your deposit.
- Provide Details: Include your account number, property address, and the date the service commenced.
Discuss Meter Removal/Transition: Inquire about the process for meter de-installation or removal and who bears the cost, if any. Crucially, discuss how electricity supply for your tenants will be managed post-cancellation to ensure no disruption.
Confirm Deposit Refund: Get written confirmation of the deposit refund amount and the expected timeline for its return.
Inform Tenants: It is paramount to communicate clearly and in advance with your tenants about the impending change in their electricity payment method and provider. Provide them with instructions on how to pay for electricity moving forward and address any remaining credit balances they may have had with Landlord Metering.

Important Note: While the guarantee is “no-quibble,” ensuring a smooth exit still requires clear communication and adherence to any outlined procedures to avoid misunderstandings or delays in receiving your deposit refund.

Landlordmetering.com Pricing

Landlordmetering.com outlines its pricing structure directly on its homepage, aiming for transparency with both landlords and tenants.

The model differentiates between a one-off setup cost for landlords and ongoing running costs primarily borne by tenants.

Landlord Costs: Low Set-Up Costs

The primary upfront cost for landlords is a security deposit per meter. This is a one-off payment designed to cover the initial setup of the sub-metering system.

Standard Deposit: A £120 per meter security deposit no VAT.
Small Order Variation: For smaller installations:
- £175 for a single meter
- £150 for two or three meters

This deposit is stated to be covered by a “No-Quibble 1 Year Guarantee,” suggesting that if a landlord is dissatisfied within the first year, they can receive their deposit back. Cardcrate.co.uk Reviews

The service is essentially “cost-free to landlords except during void periods,” implying that the ongoing operational costs are passed on to tenants.

Tenant Costs: Low Running Costs

Tenants are responsible for the ongoing costs of their electricity consumption, which are structured as follows:

Daily Standing Charge: 26.5p per day per sub-meter plus VAT. The VAT rate is normally 5% for residential and small businesses. This is a fixed daily charge, irrespective of consumption, similar to standing charges from traditional utility suppliers.
Consumption Margin: An additional 2p per kWh is added to the tenant’s electricity cost. This is the “modest profit” margin that Landlordmetering.com aims to make, as they state they “only aim to make a modest profit.”
Additional Charges Passed On:
- Cash Top-off Fees: Small charges are passed on to cover the costs incurred by Landlord Metering for cash payments made at Payzone outlets and Post Offices.
- Optional Payment Card Fees: Charges for supplying optional physical payment cards to tenants.

Ethical Concerns Regarding Pricing

While Landlordmetering.com frames its pricing as “fair” and claims to be “cheaper than you would be able to do yourself,” the addition of a 2p per kWh margin on electricity consumption for tenants raises significant ethical questions.

Profit on Essential Service: Charging a profit margin on an essential utility like electricity can be problematic from an ethical standpoint. It means tenants are paying more than the actual cost of the electricity they consume, plus a daily standing charge.
Transparency vs. True Cost: While the pricing is disclosed, the practice of adding a profit margin to consumption can be seen as an indirect form of riba interest/usury or an unjust gain, especially for those in “energy poverty.” It’s not a fixed administrative fee for managing the meters, but a variable charge that increases with usage.
Impact on Vulnerable Tenants: For tenants already struggling with “energy poverty,” an additional 2p per kWh could cumulatively add up, further straining their finances, even if it seems small on a per-unit basis.

Comparison with Direct Alternatives: In a direct utility supply scenario, tenants would pay the supplier’s standing charge and kWh rate, without an intermediary adding a profit margin on consumption. While Landlord Metering provides a service, the mechanism of profiting from the volume of consumption rather than a fixed, transparent service fee for meter management should be critically evaluated.

Better Alternative: A more ethically sound pricing model would involve charging a clear, fixed monthly or annual management fee to the landlord or a transparent, fixed fee to the tenant that covers the actual cost of the service, and then passing through the exact cost of electricity consumption to the tenant without any added margin. This ensures transparency and avoids profiting from the basic consumption of an essential service.

Landlordmetering.com vs. Direct Utility Connections

When evaluating Landlordmetering.com, it’s crucial to compare its model against the traditional approach of individual direct utility connections MPANs for each unit.

While Landlordmetering.com highlights significant cost savings, understanding the broader implications for landlords and tenants is essential, especially from an ethical perspective.

Landlordmetering.com Model

How it works:

Uses smart sub-meters to create “virtual MPANs” for each unit, all connected to a single primary network connection.
Landlord Metering manages the meters, collects payments from tenants prepayment model, and refunds the aggregated electricity cost to the landlord.
Cost for Landlord: One-off security deposit per meter £120-£175. “Cost-free” thereafter, except during void periods, as tenant pays ongoing costs.
Cost for Tenant: Daily standing charge 26.5p/day + VAT + a 2p per kWh margin + additional charges for cash top-offs/cards.

Pros from Landlord Metering’s perspective:

Massive Upfront Savings: Avoids “£000s” in costs for installing individual MPANs, making property conversions financially more viable.
Administrative Ease: No need for landlords to chase tenants for utility payments.
Reduced Arrears: Prepayment model minimizes tenant debt risk.
24/7 Tenant Support: Landlord Metering handles tenant queries.
Fraud Detection: Tamper-proof meters alert to fraud.

Cons Ethical & Practical: Hnbtraining.com Reviews

Profit on Essential Service: The 2p per kWh margin charged to tenants is a significant ethical concern. It means tenants pay more than the actual cost of their electricity consumption, which can be viewed as an indirect form of riba or an unjust charge on a necessity, especially for those in “energy poverty.”
Limited Tenant Rights: Tenants do not have a direct contract with a regulated utility supplier, potentially limiting consumer rights e.g., switching suppliers, accessing specific energy efficiency grants.
Prepayment Impact: While beneficial for landlord cash flow, it can be harsh for vulnerable tenants who might face disconnections if they run out of credit.
Deposit Requirement: Landlords still pay an upfront security deposit.

Direct Utility Connections Individual MPANs

Each residential or commercial unit has its own dedicated electricity meter and unique MPAN, connected directly to the national electricity network.
Each tenant sets up their own contract directly with an energy supplier of their choice.
Cost for Landlord: High upfront cost for installing each new MPAN and meter can be “£000s” per connection.
Cost for Tenant: Pays directly to their chosen energy supplier based on their actual consumption and the supplier’s tariff standing charge + kWh rate, without any added third-party margin.

Pros:

Full Transparency & Fairness: Tenants pay exactly for their consumption directly to a regulated supplier. No intermediary profit on consumption.
Complete Consumer Rights: Tenants have the full range of consumer protections, including the ability to choose suppliers, compare tariffs, and access support from energy ombudsmen.
Zero Landlord Involvement in Billing: Once connections are set up, landlords have no administrative burden related to individual tenant utility bills.
Ethically Sound: Aligns with principles of fair exchange and avoiding riba, as profit is not generated from merely facilitating the consumption of an essential utility.

Cons:

Prohibitive Upfront Costs: The primary disadvantage is the significant capital outlay required for each new MPAN, which Landlord Metering rightly emphasizes. This often makes it financially unfeasible for many property conversions or HMOs.
Logistical Complexity: Can involve extensive coordination with network operators and electricians.
Space Requirements: Each individual meter requires physical space.

Conclusion of Comparison

For landlords, Landlordmetering.com offers undeniable convenience and upfront cost savings compared to installing multiple direct MPANs. It effectively solves the administrative headache of utility management in multi-tenant properties.

However, from an ethical standpoint, particularly concerning Islamic principles of fair transaction and avoiding exploitation, the Direct Utility Connections model is superior. While it demands higher initial investment from the landlord, it ensures that tenants pay only for their actual consumption to a regulated supplier, without any additional profit margin added by an intermediary on an essential service. The 2p per kWh margin charged by Landlordmetering.com to tenants is a crucial ethical differentiator that landlords should weigh carefully. Landlords should prioritize models that promote transparency and avoid profiting from necessities, even if it means higher initial outlays.

Ethical Considerations of Landlordmetering.com

When evaluating Landlordmetering.com, it’s crucial to apply an ethical lens, especially from an Islamic perspective which emphasizes fairness, transparency, and avoiding exploitative practices.

While the service offers practical solutions for landlords, certain aspects of its financial model raise significant concerns.

The Problem of “Modest Profit” on Essential Services

The most prominent ethical concern lies in Landlordmetering.com’s stated practice of adding a “margin of 2p per kWh” to the electricity charged to tenants.

Nature of Riba Interest/Usury: In Islamic finance, riba is prohibited. While typically associated with interest on loans, the broader principle extends to any unjust or unearned increase in wealth derived from a transaction, especially when it involves essential goods or services. Charging an arbitrary margin on the consumption of electricity, beyond a legitimate service fee that covers operational costs, can be seen as an unjust enrichment. The service is facilitating access to electricity, not adding value to the electricity itself that justifies an additional per-unit profit.
Exploitation of Necessity: Electricity is a fundamental necessity in modern life. Profiting from the consumption of such a necessity, particularly when tenants are already identified as potentially being in “energy poverty,” can be viewed as an exploitative practice. It places an additional financial burden on individuals for a basic need, without a proportional, tangible value-add tied to the consumption volume.
Lack of Direct Value Exchange: The profit is generated simply by being an intermediary in the flow of electricity, not by transforming or adding significant value to the electricity itself. This differs from a legitimate trade where a merchant buys a product, adds value e.g., through processing, storage, distribution, or marketing, and sells it for a profit. Here, the “product” electricity is simply passed through with an additional charge.

Impact on “Energy Poverty”

The website explicitly mentions that “many of our tenants are in energy poverty.” While claiming “social responsibility” and aiming for “modest profit,” the very act of adding a margin on consumption for such tenants contradicts the spirit of alleviating energy poverty.

Every additional pence per kWh can significantly impact vulnerable households, especially over time.

Cumulative Burden: Even a “modest” 2p per kWh can add up considerably for tenants with higher consumption e.g., larger families, those working from home, or during colder months. For someone using 2,000 kWh annually, this is an extra £40 per year, which can be significant for a low-income household.
Prepayment Disconnection Risk: While a benefit for landlords, the prepayment model can lead to sudden disconnections for tenants who run out of credit, potentially leaving them without essential heating or light. This disproportionately affects those already in financial difficulty.

Transparency vs. Full Disclosure

While Landlordmetering.com discloses its pricing structure, the ethical concern isn’t about hidden fees but about the nature of the charges themselves. Qpscapecod.com Reviews

Indirect Charges: The profit margin is embedded within the consumption charge rather than being a separate, fixed administrative fee. This blurs the line between covering service costs and generating profit from consumption.

Alternatives and Ethical Solutions

From an Islamic perspective, landlords should prioritize models that align with principles of fairness adl, good conduct ihsan, and avoiding riba.

Direct Cost Pass-Through: The most ethical approach is to pass on the exact cost of electricity to tenants, without any added margin. Any administrative costs for managing sub-meters should be covered by a transparent, fixed service fee charged to the landlord, or a clearly defined, fixed management fee charged to the tenant that covers only the operational costs of the sub-metering service, not a profit on consumption.
Inclusive Rent with True Cost Recovery: If opting for inclusive rent, the utility component should be a reasonable estimate of actual costs, reviewed periodically, and not a source of profit.
Support for Vulnerable Tenants: Implement robust support mechanisms for tenants facing energy poverty, such as flexible payment options, energy efficiency advice, or access to hardship funds, rather than a strict prepayment model that risks disconnection.

In conclusion, while Landlordmetering.com offers practical efficiencies, its business model of profiting from the consumption of an essential utility, particularly for vulnerable tenants, raises significant ethical concerns under Islamic principles.

Landlords are encouraged to seek solutions that prioritize transparency, direct cost pass-through, and tenant welfare over profit maximization from basic necessities.

Frequently Asked Questions

What is Landlordmetering.com?

Landlordmetering.com is a service that provides smart electric sub-meters and a management system for landlords with multi-tenant properties.

Their solution creates “virtual MPANs” for individual units, centralizes electricity billing, collects payments from tenants, and then refunds the aggregated cost of electricity to the landlord monthly.

How does Landlordmetering.com save landlords money?

Landlordmetering.com claims to save landlords “£000s” by eliminating the need for separate, expensive electricity network connections MPANs for each unit.

Instead, they use a single primary connection and manage individual tenant usage through sub-meters.

What types of properties can use Landlordmetering.com?

Landlordmetering.com is suitable for various property types, including HMOs, flat conversions, permitted development conversions e.g., offices to residential, industrial parks, and office blocks.

They also cater to replacing old sub-metering systems.

Does Landlordmetering.com offer a free trial?

Landlordmetering.com does not explicitly mention a “free trial.” However, they offer a “No-Quibble 1 Year Guarantee” on the initial security deposit, which acts as a form of risk-free period for landlords to assess the service. Aardappelshop.nl Reviews

What are the upfront costs for landlords with Landlordmetering.com?

Landlords pay a one-off security deposit of £120 per meter.

For smaller orders, it’s £175 for a single meter or £150 for two or three meters.

This deposit is refundable under their 1-year guarantee.

How do tenants pay for electricity with Landlordmetering.com?

Tenants prepay for their electricity over the internet, via a freephone 0800 number, or with cash at Payzone outlets and Post Offices. Credits are delivered digitally to their meter.

Are there additional charges for tenants with Landlordmetering.com?

Yes, tenants incur a daily standing charge of 26.5p per day plus VAT, and Landlordmetering.com adds a margin of 2p per kWh to their electricity cost.

Small additional charges may apply for cash top-offs and optional payment cards.

Is the 2p per kWh margin ethical for tenants in energy poverty?

From an ethical standpoint, charging a profit margin on the consumption of an essential service like electricity, especially for tenants in “energy poverty,” raises significant concerns.

It means tenants pay more than the actual cost of their consumed electricity.

Does Landlordmetering.com offer 24/7 support for tenants?

Yes, Landlordmetering.com provides a 24/7 UK-based tenant helpline on their freephone number to handle tenant queries and issues.

What happens if a tenant runs out of credit with Landlordmetering.com?

As a prepayment system, tenants are expected to top up in advance. Nyavariation.se Reviews

If credit runs out, their electricity supply may be disconnected.

Landlordmetering.com offers an Auto Top Up system to help tenants avoid running out of credit.

How tamper-proof are Landlordmetering.com’s sub-meters?

Landlordmetering.com states their electric sub-meters are among the most tamper-proof on the market and automatically alert them to any fraud attempts.

They also promise to look after and replace faulty meters for life.

Can Landlordmetering.com take over responsibility for paying the electricity supplier directly?

Yes, the website mentions that on some industrial parks, they can even take over the responsibility for paying the electricity supplier directly, further simplifying management for landlords.

What is the cancellation policy for Landlordmetering.com?

The website doesn’t explicitly detail a cancellation policy beyond the 1-year guarantee.

Landlords should review their specific contract and contact Landlordmetering.com directly for termination procedures, notice periods, and deposit refunds.

What are the main benefits of using Landlordmetering.com for landlords?

The main benefits are reduced upfront costs for electricity network connections, simplified utility management, reduced risk of tenant arrears due to prepayment, and outsourced tenant support.

What are the alternatives to Landlordmetering.com for landlords?

Alternatives include installing individual direct utility connections MPANs for each unit, offering inclusive rent with a transparent utility component, or using other third-party sub-metering services that operate on a strict cost-pass-through model.

Is Landlordmetering.com suitable for existing properties with old sub-meters?

Yes, Landlordmetering.com’s solution can be used to replace old sub-meters in existing properties, offering an upgrade to their smart metering system. Toddycafe.com Reviews

How long does it take for electricity credits to be delivered to tenants?

Credits are delivered within seconds over the mobile phone network once a tenant makes a payment.

What is the “No-Quibble 1 Year Guarantee” on the deposit?

This guarantee means that if a landlord is not satisfied with the convenience and savings offered by Landlordmetering.com within the first year of service, they can receive a full refund of their security deposit.

How does Landlordmetering.com handle electricity refunds to landlords?

Landlordmetering.com collects payments from tenants and every month refunds the total cost of the electricity consumed minus their margin and charges straight into the landlord’s bank account.

Why might direct utility connections be a better ethical alternative for tenants?

Direct utility connections allow tenants to have a direct contract with a regulated energy supplier, ensuring they pay only for their actual consumption without any added profit margin from an intermediary.

This provides full consumer rights and transparency, aligning better with ethical principles of fairness in essential services.

Landlordmetering.com Reviews