Tenant bills

Android07

Hi.

My sister rented a property through a well known high street estate agent to three individuals with their individual tenancy agreements.

The first person who started living the property signed up gas & electricity and broadband under her name and would then split up the bills monthly and collect it from the other tenants.

She never signed up or paid a penny in council tax or water bills and lied to us and the estate agent throughout that she was taking care of all the bills.

All three tenants have now left. What should I tell the council and the water company about who to chase?

gazfocus

What do the three separate tenancy agreements say about the council tax and utilities? When did the tenancies start?

It sounds as though your sisters property was rented as a HMO (House of multiple occupants) and so the council tax should have been paid by the landlord (your sister) and then included in the rent charged to the tenants. Since 31st December 2023, it became the landlord who is liable for the council tax of a HMO and not the tenants. 

As for the water bill, I would think it’s fair that the tenants are all equally liable for any water used but you can only really chase them if you have forwarding addresses for the tenants. You might get away with providing the water company with the details of the three tenants but it depends on what the tenancy agreement states really. 

Brie

if the first person signed up for a tenancy with all utilities and tax in their name then they are responsible.  If they then sublet then it's still their responsibility.  

if however as the other poster has suggested it's an HMO then different rules can apply.  

theartfullodger

"Well known agent"?? Well known for what?? 

Remember in England to be a lettings agent requires no qualifications, no training, no criminal records check.  The net is covered in records of ignorant, stupid, mendacious agents.

As they are separate tenancies it's a HMO (may not require licensing). Think that means council tax is landlords problem.

Irrespective, landlord may end up with water bill.  Who will they chase?? Well they have landlords name - I'd start with them....

Did you (or do you have copies of letter/email from agent) write to utility companies& council  noting changes of occupants,, names, dates, meter readings & photos?? If not why not??

FlorayG

theartfullodger said:

"Well known agent"?? Well known for what?? 

Remember in England to be a lettings agent requires no qualifications, no training, no criminal records check.  The net is covered in records of ignorant, stupid, mendacious agents.

This ^^^
I had absolutely rubbish agents when I first rented out. I didn't know because I was an ignorant landlord, unaware of the rules, and I was bl00dy lucky that my tenants were really good and were happy to move on when I wanted to sell because otherwise I would have been in an awful mess. The agent isn't obligated to tell the LL the laws they ought to know and yet the LL is responsible when they aren't adhered to. You would think that a simple 'How To Rent OUT' booklet given to any potential LL would be a good idea 

saajan_12

Android07 said:

Hi.

My sister rented a property through a well known high street estate agent to three individuals with their individual tenancy agreements.

The first person who started living the property signed up gas & electricity and broadband under her name and would then split up the bills monthly and collect it from the other tenants.

She never signed up or paid a penny in council tax or water bills and lied to us and the estate agent throughout that she was taking care of all the bills.

All three tenants have now left. What should I tell the council and the water company about who to chase?

What exactly was agreed with the first tenant at the point of signing the contract, and what was the plan if the other tenants didn't agree? A tenant of part of a property isn't inherently liable for 1/3 of the utilities, which may be lower or higher than their actual usage, so in the absence of meters per room or a specific agreement to that effect, I wouldn't just assume that arrangement will work. 

What to tell the council and water co? "Here's your money". Depending on her contract with the tenants she may or may not be able to subsequently sue them. 

theartfullodger said:

"Well known agent"?? Well known for what?? 

Remember in England to be a lettings agent requires no qualifications, no training, no criminal records check.  The net is covered in records of ignorant, stupid, mendacious agents.

As they are separate tenancies it's a HMO (may not require licensing). Think that means council tax is landlords problem.

Irrespective, landlord may end up with water bill.  Who will they chase?? Well they have landlords name - I'd start with them....

Did you (or do you have copies of letter/email from agent) write to utility companies& council  noting changes of occupants,, names, dates, meter readings & photos?? If not why not??

Again, this old trope. I generally dislike agents too from all annecdotal and personal experiences, but so irrelevant to the meat of this post. 

Android07

I have just checked with her.

Apparently, she has paid the water bill all this time!

Anyway, the council has said that the council tax is still in the name of the previous tenant ( that was another troublemaker ) as they never informed them and the new tenants never informed the council they have moved in either.

Do I take over the council tax now and let the council puruse the unpaid tax from the previous tenant?

This was also in the tenancy agreement :

8. UTILITIES

8.1. During the Term you agree to pay the council tax and to pay for all services and utilities for the Property

including but not limited to supplies of water, sewerage, gas, electric and any other fuels.

8.2. You agree to pay for the television licence throughout the Term and to renew at the appropriate time.

8.3. You agree to pay for all communication services throughout the Term including for the provision of telephone,

internet, cable television or satellite television services.

8.4. If any sums payable in this clause relate to the Property together with any other property, you shall pay the

proportion due in respect of the Property.

8.5. Where you allow any utilities or other services to be withdrawn or cut off, either during the Term or at the end

of the Agreement, you will pay the costs of reconnecting or resuming those services together with any unpaid

charges.

8.6. You agree:

8.6.1. To notify the local authority and suppliers of services and utilities of your contact details at the start of

the Term;

8.6.2. To apply for the accounts to be sent to and payable by you;

8.6.3. To notify the local authority and suppliers of services and utilities about the end of the Agreement and

to pay all final accounts due until the last day of the Term;

8.6.4. To provide your forwarding address to the local authority and suppliers of services and utilities. If you

fail to do so and, if there are unpaid charges that were your responsibility to pay, you agree that the

Landlord or Agent may send your forwarding address and other contact details to them;

8.6.5. To refill the tank to the same level as at the beginning of the Term if the Property is heated by oil or

LPG

Myci85

I'd say that's pretty conclusive that the council tax was the tenant's responsibility. Do you have her forwarding address? If so pass that along with the dates of the tenancy to the council and let them chase. 

gazfocus

Before you do anything, you need to establish whether the house is a HMO. Did three tenants have separate tenancy agreements or were they all names on the one agreement?

The reason you need to establish this is because regardless of what the tenancy agreement says, if the house is a HMO, the council tax is the landlords responsibility and not the tenants. 

If the tenants were all on one tenancy agreement, you need to give the council the date the tenancy started and ended and the details of the three tenants. The council will then pursue them equally until it is paid. 

saajan_12

Android07 said:

8. UTILITIES

8.1. During the Term you agree to pay the council tax and to pay for all services and utilities for the Property

including but not limited to supplies of water, sewerage, gas, electric and any other fuels.

8.2. You agree to pay for the television licence throughout the Term and to renew at the appropriate time.

8.3. You agree to pay for all communication services throughout the Term including for the provision of telephone,

internet, cable television or satellite television services.

8.4. If any sums payable in this clause relate to the Property together with any other property, you shall pay the

proportion due in respect of the Property.

8.5. Where you allow any utilities or other services to be withdrawn or cut off, either during the Term or at the end

of the Agreement, you will pay the costs of reconnecting or resuming those services together with any unpaid

charges.

8.6. You agree:

8.6.1. To notify the local authority and suppliers of services and utilities of your contact details at the start of

the Term;

8.6.2. To apply for the accounts to be sent to and payable by you;

8.6.3. To notify the local authority and suppliers of services and utilities about the end of the Agreement and

to pay all final accounts due until the last day of the Term;

8.6.4. To provide your forwarding address to the local authority and suppliers of services and utilities. If you

fail to do so and, if there are unpaid charges that were your responsibility to pay, you agree that the

Landlord or Agent may send your forwarding address and other contact details to them;

8.6.5. To refill the tank to the same level as at the beginning of the Term if the Property is heated by oil or

LPG

Sounds pretty vague.. what is 'the proportion'? Equal 1/3 splits, or based on the room square footage, or based on each tenants usage? Why is one of those more fair than the other? 

That's exactly why this is usually covered by the LL and the rent is raised to cover it. 

At this stage, I don't think that agreement will stand up too well if challenged.. so try to come to some compromise and come up with a better setup next time. 

Android07

gazfocus said:

Before you do anything, you need to establish whether the house is a HMO. Did three tenants have separate tenancy agreements or were they all names on the one agreement?

The reason you need to establish this is because regardless of what the tenancy agreement says, if the house is a HMO, the council tax is the landlords responsibility and not the tenants. 

If the tenants were all on one tenancy agreement, you need to give the council the date the tenancy started and ended and the details of the three tenants. The council will then pursue them equally until it is paid. 

The house is a HMO. Three tenants each had separate tenancy agreements.