The deals are for a commission on energy and water being supplied to their properties but, the association says, some landlords and agents include unlawful clauses in their tenancy agreements which forbid tenants from switching suppliers.
Some are also illegally charging tenants an exit fee for moving suppliers.
The AIIC says that only one in four tenants are bothering to switch their energy supplier after moving into a rented property despite being able to save around £190 a year on their gas and electricity bills, according to energy watchdog Ofgem.
The AIIC’s Pat Barber said landlords and agents sign utility supplies deals for a commission and then do not tell tenants when they move in that they can switch suppliers and end up paying more than they need to for their water and energy bills.
Tenants need to ask landlords to switch utility suppliers
This is, apparently, common practice within the industry and the AIIC has come across one landlord who fitted their water meters into several properties to hike up the bills instead of the water company’s own meters.
Pat added: “It is important that when a tenant checks out that the inventory clerk, agent or landlord takes readings for water, electricity and gas. They should then ensure the previous tenant has cancelled or transferred all of their utility bills by asking the energy and water suppliers directly.”
Whenever a new tenant moves into a property they should be told who their utility supplier is and that they are able to choose their utility supplier, if that’s what they want to do.
Essentially, most tenants do not know that if they pay the utility bills directly then they are able to switch supplier.
A third of tenants don’t know they can switch energy suppliers
However, this is complicated by the fact they must ask permission from their landlord but the landlord cannot refuse permission. This issue also covers a tenant using a prepayment meter.
The comparison website uSwitch has data which shows that around a third of tenants didn’t know they could change supplier and around the same number said that renting a property made them less inclined to change utility suppliers.
The site also found that 28% thought that it would be difficult to switch because they were a tenant but perhaps the most shocking statistic is that one in 10 tenants have been illegally prevented by their landlords or agents from switching energy suppliers.
A spokeswoman for uSwitch said: “It is vital that tenants do not lose the right of controlling their household bills and if their name is on the bill itself then they can shop around for a better deal.”
