Council Tax for HMO

Hi,

I have 3 students living in a 3 bedroom property on 2 tenancy agreements, from February they will no longer be students, within the tenancy agreement I have made it clear the council tax is the tenant's responsibility, will that be the case with my local authority, if the tenants don't pay the council tax. 




Comments

  • lincroft1710
    lincroft1710 Posts: 17,643 Forumite
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    If there is more than one tenancy then that suggests it may be an HMO for CT purposes and you would be responsible for the CT rather than your tenants,


    The poster @CIS is far more knowledgeable in these matters and may disagree however.
    If you are querying your Council Tax band would you please state whether you are in England, Scotland or Wales
  • CIS
    CIS Posts: 12,260 Forumite
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    sukh38 said:
    Hi,

    I have 3 students living in a 3 bedroom property on 2 tenancy agreements, from February they will no longer be students, within the tenancy agreement I have made it clear the council tax is the tenant's responsibility, will that be the case with my local authority, if the tenants don't pay the council tax. 

    Multiple tenancies will put it under a Class C property for council tax, so a council tax HMO. You can't pass the actual liability on to the tenants as it would fall on to the landlord by law.

    What you would need would be a clause in a tenancy to allow you to pursue the tenants, contractually, for any costs that you incur. If you don't already have this clause then you can cannot simply introduce it to an existing tenancy without the agreement of the tenants in varying the existing terms.
    I no longer work in Council Tax Recovery but instead work as a specialist Council Tax paralegal assisting landlords and Council Tax payers with council tax disputes and valuation tribunals. My views are my own reading of the law and you should always check with the local authority in question.
  • sukh38
    sukh38 Posts: 115 Forumite
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    CIS said:
    sukh38 said:
    Hi,

    I have 3 students living in a 3 bedroom property on 2 tenancy agreements, from February they will no longer be students, within the tenancy agreement I have made it clear the council tax is the tenant's responsibility, will that be the case with my local authority, if the tenants don't pay the council tax. 

    Multiple tenancies will put it under a Class C property for council tax, so a council tax HMO. You can't pass the actual liability on to the tenants as it would fall on to the landlord by law.

    What you would need would be a clause in a tenancy to allow you to pursue the tenants, contractually, for any costs that you incur. If you don't already have this clause then you can cannot simply introduce it to an existing tenancy without the agreement of the tenants in varying the existing terms.
    Thanks I do have it, my aim was to have them legally liable but I guess I will advise them that they will be liable or move new students in when their tennacy expires.
  • CIS
    CIS Posts: 12,260 Forumite
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    sukh38 said:
    CIS said:
    sukh38 said:
    Hi,

    I have 3 students living in a 3 bedroom property on 2 tenancy agreements, from February they will no longer be students, within the tenancy agreement I have made it clear the council tax is the tenant's responsibility, will that be the case with my local authority, if the tenants don't pay the council tax. 

    Multiple tenancies will put it under a Class C property for council tax, so a council tax HMO. You can't pass the actual liability on to the tenants as it would fall on to the landlord by law.

    What you would need would be a clause in a tenancy to allow you to pursue the tenants, contractually, for any costs that you incur. If you don't already have this clause then you can cannot simply introduce it to an existing tenancy without the agreement of the tenants in varying the existing terms.
    Thanks I do have it, my aim was to have them legally liable but I guess I will advise them that they will be liable or move new students in when their tennacy expires.
    The landlord would remain liable for the council tax charge and would then need to recover the costs from the tenant.

    I no longer work in Council Tax Recovery but instead work as a specialist Council Tax paralegal assisting landlords and Council Tax payers with council tax disputes and valuation tribunals. My views are my own reading of the law and you should always check with the local authority in question.
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