The step by step process I used to set up my bills and save my uni house £2,662.
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#ad: My recommendation if you're a student setting up your bills separately, you can use this Octopus Energy affiliate link to get started. (Please note: This is an independent page/link and not an official Octopus website.
Insurance (this one saves your deposit)
Imagine if you or your housemate rips a couch or stains a carpet, the tenant's liability cover means it comes out of the policy, not your deposit.NOTE
⚠️ When you make a claim against your insurance, there is an excess fee that can vary depending on the level of cover you select, but it shouldn't be more than £30 each. Although it can save you hundreds, if not thousands, from your deposit.My recommendation, and the one that I used for my house is:
You can't go wrong with it, one of the best value products that I could find.THIS IS AN INSURANCE PRODUCT.
ALWAYS CHECK TERMS TO VERIFY COVERAGE
WIFI
Having fast WiFi is important, but having a good wifi experience is crucial:
The 3 main broadband networks in the UK are: Virgin Media, Openreach and CityfibreEvery uni house is different. You need to ask your landlord which WIFI company the property is wired for:
Some are wired for all 3, whilst others are just 1.
Wired for more than one? You get 14 days to try out the wifi. If you don't like the wifi experience, try another wifi provider that uses a different network!Here are my recommendations:
Property Wired for Virgin Media?
Property Wired for Openreach?
Property Wired for CityFibre?
Gas and Electric
Set this up before you move in, so you don't chase old suppliers.I compared the UK energy providers and valued customer experience as a priority because this is crucial, the only company you'd most likely call whilst you're in your uni house is your energy company.I came to this conclusion:
They all sell the same energy: Octopus is the most popular energy supplier in the UK, and they won: Which? Recommended 9 years in a row. They have UK-based customer service + 4.8★ from 800k+ reviews. They're a trusted company, and I can also speak from personal experience on this one. They've always been easy to speak with when needed.There will be 2 options when setting up your gas and electric: A fixed plan and a variable plan:
If it were me?
I'd pick the fixed tariff; it locks in your energy price for 12 months, so you get price stability.What if I leave before 12 months?
The fixed plan has a £50 fuel exit fee, which is added to your final bill.
The surplus in your bills account should cover this by the time you leave.Worst-case scenario: In a house of 6, you each pay a cancellation fee of £17 to leave early, a small price to pay for stability, in my opinion.To put it in perspective, Bill bundlers charge over £100 per person if you leave before your contracted term.Whether you choose the flexible variable tariff or the fixed one, your house can claim £50 energy credit for picking Octopus using this guide.Are you an existing customer? Find out how you can benefit too. T&Cs apply (only one switching offer per household).
#ad: My recommendation if you're a student setting up your bills separately, you can use this Octopus Energy affiliate link to get started. (Please note: This is an independent page/link and not an official Octopus website.
How do you sort out the bills?
It sounds hard, but it's not. Your uni house bills are managed in 3 stages.1. Pre-setup: This is where you pick who in the house does the bills. Preferably, whoever has a separate bank account can use it for the bills. This keeps the house's money and your money separate. Then you need the first payment from your housemates. Over 5 people in the house.2. The initial set-up. You fill in 4 forms: Energy (move-in date and plan), WiFI (Choose the provider), and fill in the form for water (Move-in date) and insurance (everyone in the house's name + move-in date ).3. Meter readings and small checkups
Once everything is set up, all you need to do is ensure money is coming in and out. And keep an eye on your emails. If anyone needs a reading, they'll contact you.And that's it. Bills sorted.
Set up Energy 1/4 for your house today ↓
How to set up water?
Water is the easiest to set up because there's no choice.There are 2 types of water bills. Freshwater (what comes out of the tap) and wastewater (what goes down the drain), a lot of the time they are handled by the same company, however in some cases can be handled by different companies, in which case this process needs to be repeated with the second company.Visit the supplier's website and register your move with your move-in date and your details.Use this tool to find your water company at your property:
Everything is set up, what now?
All sorted! You've just saved your house A LOT of money.
Things to keep in mind:When you move in, the first thing you should do is take note of the 3-meter readings. Water, Electricity and Gas.
You can submit these in the Octopus Energy app, and the water can be submitted via an online portal or the water company's preferred method. When in doubt, just give them a ring, as long as you've got the reading, you're all good. Even if you set it up a whole month later (but don't do that.).Ask your housemates to set up a standing order. This is a bank transfer that repeats a transfer to your bills account automatically each month, so you don't need to remind them.Keep an eye on your emails: Octopus Energy or your water company may ask you to submit meter readings.Put a reminder in your calendar to turn down the heating before you go home for Christmas. Around 15C, cool enough to save your house money on energy but warm enough to prevent your boiler from freezing.Use as much as you want! Although within reason. Do not keep the heating on all day, or you may consume the surplus that is there. Aim heating at 21C and regular day to day house temp at 18-19CWhen you leave your uni house: Ensure you give one month's notice. So one month before you move out. Give the WIFl and water company a call. Log in to your insurance to turn off auto-renewal. And fill in the leaving house form for Octopus Energy or give them a ring.
FAQ
How much should each housemate pay per month?
This depends on your area; however, as a rule of thumb for a house of 5-12. £70 a month each is my recommendation. You might be able to get away with £60, my house did, but recently there has been a rise in prices, and it's better to have more than have to ask everyone for more later. Note that not all of this will go on the bills; a surplus may build, and if the bills/any applicable cancellation fees don't use this surplus when you move out, you can spread the surplus back to everyone equally.
What happens if bills are higher than expected?
Because you are starting with a one-month surplus, this should not impact you. If your energy usage is high during the winter months, this is expected and won't affect your house bills or bank account. Your Octopus Energy account may go into debit during the winter and credit during the summer, but it evens out. This is what allows the direct debit out of the bills account for energy to be one fixed amount for the entire time. The only time it should get concerning is if they debit by more than £400 during the winter. Then you can speak with them directly, and they might recommend increasing your direct debit.
When should we set up bills for our uni house?
I would recommend you set it up as early as possible to get it out of the way. Nothing's worse than forgetting one thing. Such as forgetting to schedule WiFi or your electric and gas, and having to contact the providers that are existing at the property. Also, signing up now lets you claim the £50 credit that is available in this guide!
Can I do this before moving in?
Yes. In fact, it is necessary for a stress-free move-in.
Is bundling your bills always bad?
Bill bundling companies are there as middlemen; you still need to submit meter readings.
Although the setup is easier, it's only 1 form compared to 4 when setting it up separately. You are paying a huge premium for those 20 minutes saved.
With the new renters' rights act, most students won't stay for the full 12 months, making setting up bills separately the only financially viable choice, considering that it is standard for there to be a 12-month contract in the industry.
Why should I recommend setting bills up separately?
You get more flexibility and the luxury of choice. Whilst convenience is nice, choice is even better because if a WiFi provider isn't good, you can just swap it out with its competitor.
How long does it take to set everything up?
It can range from 10 minutes to an hour. It shouldn't take you more than an hour; the process is just filling in personal details and move-in dates. Completely up to the person.
Is it hard to manage the bills?
Not at all, once the forms are filled out, direct debits are set up, and your housemates know how much and when to pay you. You don't have to do much at all except for occasional meter readings and budget checks. (Checking the bills, bank account and the Octopus Energy account.)
What if my housemates don't pay?
With a dedicated uni house bills account, a few days late shouldn't cause any issues, and most times problems are one-off, and there's minimal delay. If a housemate stops paying for longer than a month, then it will be time for you and your house to reconsider the way you split the bills. Consider splitting the total amount between 1 less person; everyone's share will go up. However, even with this, in a house of 6, a monthly bill going from 70 per person to 84 per person is still less than bundling your bills.
What if I don't trust my housemates?
If trust is an issue with your housemates, I'd flag you should reconsider living together; you should live with people you trust. Joint tenancies mean that there are shared responsibilities regardless of who manages the bills.
However, there is a way to handle bills with minimum risk, which is to ask your housemate to pay for the bills as a yearly sum. Monthly amount *12. This can be sent from their overdraft if needed, and the housemate can repay their overdraft monthly to avoid late payments to the bill handler.
Should I be the person handling the bills?
Yes, if you're living with friends you trust. This can be invaluable for life after uni. Household bills are reflected on your credit history. Paying these on time creates a trail of good credit history, which can help you in the future. Note: Missing payments can negatively affect your credit.
Can I make money from handling the bills?
Sometimes banks pay you for having a balance, which can generate interest monthly.
Why Octopus Energy
I recommended them last year, used them for a year and have had a genuinely great experience. They offer rewards to their customers on a regular basis. Also, they're one of the largest energy suppliers in england and consistently top-rated.
What does the affiliate mean?
Whilst I may receive a reward if you sign up, my opinion remains unsponsored and even without the affiliate would still recommend it. I had the opportunity to use affiliates in WiFi, but refused as it would limit choice. This guide is meant to put students first.
Do I have to use your recommendations?
No, in fact, I encourage you to do your own research, as offers can change daily; however, sometimes when things get too complex, students resort to the convenient option, which is bill bundling companies, which cost double. I needed to show that there is an easy way to sort bills that mixes convenience with the freedom and savings of setting up your bills separately.
Do we actually need insurance?
Unless your tenancy explicitly says so, no, you don't. However, I heavily encourage it as it protects your belongings in the property and, most importantly, the product I selected has a renters' liability insurance included. This protects your deposit up to £5000 from damage. Ts and Cs apply, so double-check that number on your policy, but this is great for uni houses.
Do I need to set up water?
Yes, you do. Use the website in the wifi section to find the water suppliers servicing your property.
What happens if I leave before 12 months?
This depends on what selections you chose. If you chose a 30-day WiFi contract, a one-month notice should suffice with no disconnection fee. If there are any fixed-term contracts, such as a 12-month Wi-Fi contract, you will need to pay a cancellation fee, which is the number of months remaining on the contract with a small discount applied. Usually, if you only have a few months left, divided by the house, this can be £15-20 per person.
A cancellation fee of £100 (for most houses) applies with Octopus Energy if you select one of their fixed plans. In a house of 6, this is £16.67 per person as a cancellation fee for energy. You could choose a variable plan that doesn't have cancellation fees; however, you are subject to price increases. To keep my recommendations in this guide relevant ot hte average student, I recommended a fixed plan from Octopus Energy. The cancellation fee, in my opinion, is worth the security that it brings, and a cancellation fee from bundling your bills is over £100 each. On average, the cancellation fee for when you set it up separately seems to be half a month of your normal bill payment.
TIP:
Your bills bank account, as stated earlier, should be growing a balance that should cover most, if not all, cancellation fees. Not all the bill money leaves the account each month.