Solar in Investment Property

We have an IP in Brisbane with 3.5kW of solar and about to put in the market for rent.

Just want to gauge what people usually do. From what I gather, would be one of the following:

1) You keep electricity in your name, Tenant pays actual consumption less credits.
2) You keep electricity in your name, Tenant pays actual consumption with no credit.
3) You keep electricity in your name, include electricity in the rent amount
4) You disconnects electricity and Tenant has account in their own name

Hope you can share your experience. Many thanks in advance!

Comments

  • I would say that it depends on what Feed-In tarrif the system is qualified for.
    If it's on a high Feed-In tarrif and you'll lose it by disconnecting/changing account, then I'd look at Option 1/2
    Option 3 sounds very risky.. including electricity in the rental is go9ing to encourage the tenant to abuse their electricity..
    eg leaving the A/C on permanently.

    • High tarrif.
      Yes agree with you on those points. Will need to ponder some more.

  • +2

    I don't think any tenant would agree to option 2 as you're simply making money off them and they'd be better to just have it in their name.

    You need some sweetener, like the first $x/month electricity is free

  • Good idea. Thanks!

  • Work out an estimate of the bill add it to the rent as utilities included.

    • Ya was thinking of that.
      But wonder whether we can take Utilities BOnd.
      Plus Pet Bond … Hmmmm…

Login or Join to leave a comment