but as a solution for a landlord with dodgy tenants, it's too easy to block the monitor and receive free electric!
The reading on the calibrated meter will determine how much they need to pay you for electricity used and is ( I believe ) the only legal way you can charge for the re-sale of electricity. Whether you can legally disconnect the supply if they default on payment at billing time is something I do not know. You cannot issue a bill based on the count of LED pulses.
Your coin box idea is valid if you describe it as a way for them to save the right amount of money ready to pay the bills you give them. If the rate per coin is set to be slightly higher priced than the agreed cost per unit then you will be giving them the difference so at billing time they do not have to have any cash to to pay you.
The photo diode can be mounted in a light proof screen to keep ambient light out of the photo diode. The sudden change of intensity as the LED lights and goes dark can be detected by a circuit that ignores slow changes of ambient light. If the LED is rapidly pulsed when lit then that frequency will be easy to detect and changes in ambient light completely ignored.
False triggering will increase the amount the tenant is saving and provided [1] it is not excessive and [2] the excess is refunded at billing time it should be legally OK.