Subletting to a new tenant

MS2295

Hi all,
I signed an AST for 12 months but I decided to leave earlier. I currently live with 3 other students so we don't pay any council tax. I decided to sublet my room for the remaining months and I am looking for a new tenant. I already talked to my landlord and for him it's fine. However, neither of us know if I can sublet to students only. My question is: can I sublet my room to a worker? If so, should he or my housemates be liable to pay the council tax? Please help me clear my mind, any information will be helpful.

anselld

If you are on a joint tenancy and you sublet to a non-student he will be liable for the full Council Tax less the single person discount.

[Deleted User]

Practically speaking you need to sublet to a student.  Because if you sublet to a worker, then 75% of the council tax for the property has to be paid.   That could easily be be £75-£100 or more.   If you could find a worker who'd agree to pay it, you could go ahead.  The bill would be in that person's name and none of the rest of you would have to pay it.  But easier just to find a student.

More info here:

https://student.spareroom.co.uk/content/student-advice/council-tax-students/ 

greatcrested

As above.

Bear in mind this person will not be a lodger - they will be your tenant. You will have all the legal obligations of a landlord eg

* paying tax on the income (if relevant)

* providing an EPC, gov leaflet and gas report

* completing a 'Right to Rent' check

* protecting his deposit in a scheme (assuming he pays you a deposit)

etc

[Deleted User]

You shouldn't be looking to sublet the room, with the new person paying their rent to you, and you then paying the landlord.   There are no upsides to that arrangement - unless there's the potential for you to set the rent they pay and to make a small profit.  But still, it's not worth the risk.

What you want is for the new person to replace you on the contract, and pay their rent directly to the landlord.  So you can wash your hands with the property.   Whether the landlord wants to issue a new joint tenancy agreement or not is up to them, but you'd want written confirmation that they'd allowed the tenancy to be assigned to the new person and that you are off the hook for the rent whatever happens.

in_my_wellies

In some areas where the council are trying to reduce the number of student properties having a worker in the property may change the status of the property. My son rented in Nottingham and in exactly the OPs situation was told by the landlord that the room could only be let to a student so as not to lose the student property registration. Once lost it could not be turned back into a student property so the OPs landlord may wish to check with the council. (sorry I don't know the correct terminology) 

greatcrested

Poster_586329 said:

What you want is for the new person to replace you on the contract, .......you'd want written confirmation that they'd allowed the tenancy to be assigned to the new person and that you are off the hook for the rent whatever happens.

This is a sampleDeed of Assignment.Not bad but it needs a 7th point, that the incoming tenant agrees to pay the outgoing tenant £X to cover his share of the deposit.

https://tenancyanswers.ucoz.com/index/changing_tenants/0-25

CIS

..............................

MS2295

Yes, It's much easier with students. However, if I don't have other choices, and the worker agrees to pay the council tax, we should make a "sublet contract" and my housemates wouldn't be affected, is this right? We don't have a joint tenancy, each of us has its own contract. Thank you again for any help!!

anselld

MS2295 said:

We don't have a joint tenancy, each of us has its own contract. Thank you again for any help!!

In that case it is a Council Tax HMO so tread very carefully because I think the owner would become liable for the CT which I imagine they would not be happy with.  There would need to be a clear understanding in writing from the outset that CT would be paid by the "worker" regardless of who the Council deems liable.