Ok so this preposterous HMO licence (£1500), just so that 3 people can live in my flat - ok be that as it may. I understand I , as the landlord , am liable for the tenants’ council tax!!! Well I can’t afford to pay that - can i set ot up so they pay it to me directly, off-lease? I’m not paying for it ! They live there! This is ludicrous!
Who in their right mind would want an HMO?! The only reason I’m doing it is I can’t find ‘single household’ tenants!
Licensing for HMO are for five and above. Why are you paying fees for a three bed HMO?
Does your borough have different rules?
Under HMO rules the LA bills the landlord for council tax unless all three rented the house as a group on one contract. Only then, and if the contract states the tenants are liable the bill goes in their name as you can send the contract to the LA.
If they rented on a room by room basis you will have to get it back through the tenants, as long as you made the tenant liable for council tax and it was not included in the rent and your contract states the tennat is liable.
When the law changed recently to make landlords liable for the Council Tax in ALL HMOs, (both joint tenants and room only lets), I had a feeling there would be transition problems for landlords where the tenants are already in the property. You’ve just confirmed that this is indeed the case.
I think your options now are:
- increase the rent by mutual agreement to cover the Council tax. You can do this via a letter and once the tenants start paying it, it becomes legally binding
- draft a separate contract for them to pay you the CT separately. The problem here is that you would not be able to use this to evict if they didn’t pay it.
- evict the tenants using s21 and start again.
Thanks!
Yes these 3 tenants would sign one contract together as a single entity, renting out the entire apartment for themselves as a unit.
My council says in addition to the mandatory HMO for five or more they have something called I don’t know a supplemental HMO or some crap where if there’s more than just two individuals the landlord has to pay £500 per bedroom for a licence! Yeah licence to print money!
On the 24th November last year the landlord association published in their newsletter that disaggregation ( billing per room) would cease in December last year.
I would speak to the Landlord association and clarify the legislation before speaking to your local authority .
My post with the link to the webpage was waiting approval but if you look up NRLA HMO council tax you should get to the correct page
Even if the Council didnt bother licensing properties with only 3 unrelated people, it would still be an HMO. You would still need to follow the full HMO Management Regulations and the Fire Safety Order. And you would still be responsible for the Council Tax, (yes even with a joint tenancy) as a result of the new regulations from Dec 2023.
Hello. I am interested in the law change that has been mentioned for HMO/council tax. I have an HMO licence for my 3 tenant flat. Looking on the shelter web page and the legislation as I read it my tenants can still be liable for council tax. I am only licenced because my council needs me to be. My tenants have no individual door locks and can all use all areas. It is a single tenancy agreement and any one could be liable for all.
Whilst its still possible for the tenant to continue paying the Council Tax if you both agree to this, if they stop paying, you will now be legally liable to pay the tax.
My reading of this new regulation is that landlords are now responsible for the Council tax for all S254 HMOs, whether licensed or not and that for any new tenancies, they should charge an inclusive rent and pay the CT themselves.
all HMO people ,sell up and get out
Shelter website suggests that there can be a different definition of an HMO for council tax purposes. I’m happy with there description so I suggest further investigation.
Interestingly, the N R L A and Landlords Guild have now said they believe that joint tenants in HMOs still retain the legal liability for Council Tax. This in in opposition to the Government advice and that of a firm of housing lawyers, (Russell Cooke) who have said that landlords now have the legal liability in all HMOs. I think its going to take a little longer to establish anything definitive on the issue. Meanwhile landlords are at risk.