tenant refusing to pay council tax

real1314

It's NOT an unfair term.

I'm really getting bored with people who just say "I think it might be an unfair term" without any research or checking. They seem to mostly judge this on the balance of whether the term adversely affect the tenant, in which case it must be unfair.

OFT suggested clause:

To pay during the term a proportionate part of the Council tax, the water sewerage and environmental charges for the house, and to pay for utility supplies consumed and the television licence fee for the house.

Unfair clause is:

To pay the Council tax, water, sewerage and environmental charges.

The main distinction seems to be that it must make it clear that only a proportion should be required from mthe tenant. And that it includes the utility and TV license charge.

MrChips

I've been researching it all morning and have just come to the same conclusion as you!

Oh well, back to our original argument that the cleaning deductions were unfair and that he hasn’t paid any council tax since 2005 and is pocketing the deductions for himself!

moneysavinmonkey

real1314 wrote: »

It's NOT an unfair term.

I'm really getting bored with people who just say "I think it might be an unfair term" without any research or checking. They seem to mostly judge this on the balance of whether the term adversely affect the tenant, in which case it must be unfair.

OFT suggested clause:

To pay during the term a proportionate part of the Council tax, the water sewerage and environmental charges for the house, and to pay for utility supplies consumed and the television licence fee for the house.

Unfair clause is:

To pay the Council tax, water, sewerage and environmental charges.

The main distinction seems to be that it must make it clear that only a proportion should be required from mthe tenant. And that it includes the utility and TV license charge.

I think this term arose from disputes where landlord were charging tenants for a full years council tax when they stayed for less than 12 months - will read through the unfair terms guidance text as I'm sure that's where i saw it... so in this case proportionate refers to amount of time in the property and is not to do with sharers or HMOs.

given that the OP's tenants (allegedly) got her information from the council, who told her she was not responsible for paying, I would suggest the OP phones the council and asks them what the situation is- ie who is registered to pay the council tax + whether it is legal to require the tenant to pay a contribution separate to their rent. Also is the OP a member of a landlords association - would be worth a call to their legal helpline.

moneysavinmonkey

"We would object to a term suggesting that the tenant's rights are more limited when an agreement is terminated than is in fact the case. An example would be a term suggesting that the tenant's obligations to pay charges such as council tax can never come to an end before the expiry of the fixed period of the tenancy, even where the tenant leaves the property and is replaced by another tenant during that period."

From the OFT guidance on unfair terms in tenancy agreement.... nothing is mentioned in the whole document about HMOs so it is fair to assume that the unfair guidance pointed out by real1314 does not necessary apply to the HMO situation.

Guy_Montag

I think the OFT guidelines probably predate the 2004 housing act.

While the cost of council tax can be passed onto the tenant, the LL may find that they are liable for non-payment. I.e. the TA says the tenant must pay, but when the bailiffs come calling they go to the LL. Hence better for the LL to pay the tax & put the rent up proportionally, after all the LL/Tenant relationship is a civil matter, but the LL/council one is a criminal matter.

real1314

In a non HMO the tenant would be legally responsible for the Ctax anyway. Ctax is payable by the occupier, not the owner.

In a HMO situation the Ctax is payable by the owner/LL however the contract can include a charge for the Ctax to be passed on to the tenant. That is the sitaution (imho) that the OFT are addressing.

Proportionate would (again imho) be in respect of occupany and time period.

The charge could however be levied regardless of whether the LL pays the Ctax, as that is a matter between the LL and the Council.

moneysavinmonkey

real1314 wrote: »

In a HMO situation the Ctax is payable by the owner/LL however the contract can include a charge for the Ctax to be passed on to the tenant. That is the sitaution (imho) that the OFT are addressing.

Have to agree to agree to disagree on this one... if you read the accompanying text to the unfair terms - i have posted this above- it makes no mention of HMO or sharing council tax charges between tenants.. in fact it specifically refers to the situation where the length of stay of the tenant is less than the term of council tax. although that's not to say it couldn't also be applied to the HMO situation but it is far from clear cut.

Ultimately as others have said the council will chase the landlord for the council tax and it is going to be difficult or impossible to extract the money latterly from uncooperative tenants. Far better in the case of an HMO with separate tenancies to include an allowance for each tenant in the cost of their rent.

real1314

moneysavinmonkey wrote: »

Have to agree to agree to disagree on this one... if you read the accompanying text to the unfair terms - i have posted this above- it makes no mention of HMO or sharing council tax charges between tenants.. in fact it specifically refers to the situation where the length of stay of the tenant is less than the term of council tax. although that's not to say it couldn't also be applied to the HMO situation but it is far from clear cut.

Ultimately as others have said the council will chase the landlord for the council tax and it is going to be difficult or impossible to extract the money latterly from uncooperative tenants. Far better in the case of an HMO with separate tenancies to include an allowance for each tenant in the cost of their rent.

Fair point, have to agree to agree with you on that one! I didn't consider that a LL might try to charge a Tenant for a full years Ctax even where they were replaced by a new tenant. I'm obviously not devious enough to cut it.

Nickynoo1

Also, if the tenant is on benefits they would get housing benefit but not council tax benefit as they would not be deemed liable. If the LL demands it paid i would question if the LL was a "fit and proper landlord"

Nickynoo1

theGrinch

if you verbally agreed it and had it confirmed in the AST for each tenant to pay a proportion, then that is far from an unfair clause. in this case it seems very transparent if the tenant knows exactly how much and when the council is paid.

there are many occasions where a contract is formed with one person but the costs are partly or wholly paid by someone else.

if the tenant reneges, it just shows you how untrustworthy they are. just serve the tenant notice to quit when the time comes.

the advantage of separate ASTs for each tenant is you can easily get rid of the problem makers.

i hope that helps