As a landlord, understanding your responsibilities regarding council tax is crucial for maintaining a successful property portfolio. Moreover, if you miss paying it on time, you may be inviting unnecessary court action. While tenants are typically responsible for this charge, there are specific situations where the responsibility falls on the property owner. In this guide, we’ll explore the ins and outs of council tax and how it pertains to landlords.
Navigate the complexities of council tax with our expert help.
What Is Council Tax?
Council tax is an annual fee charged by local authorities to fund essential services in your area. These services include:
- Emergency services (police, fire, and ambulance)
- Waste collection and disposal
- Road maintenance
- Public libraries
- Parks and recreational facilities
Who Pays Council Tax?
Generally, the occupants of a property are responsible for paying council tax. This means that in most cases, your tenants will be liable for this expense. However, there are exceptions where landlords become responsible for council tax payments:
- Houses in multiple occupation (HMOs): If you’re letting out individual rooms in a property and tenants have separate tenancy agreements, you as the landlord are responsible for paying council tax.
- Tenants under 18: If all occupants of your property are under 18 years old, the landlord becomes liable for council tax payments.
- Short-term lets: For properties rented out for very short periods (usually less than six months), the landlord may be responsible for these payments.
- Unoccupied properties: If your property is empty, you’re generally responsible for council tax, although some councils offer discounts for vacant properties.
- Care homes and hostels: Landlords of these types of accommodations are typically responsible.
- Temporary rental properties: If the tenants are moved to a different property temporarily while there is an emergency renovation at the primary residence, for example, the landlords will have to pay the council tax.
HMOs And Council Tax: A Special Case
For Houses in Multiple Occupation (HMOs), the situation can be more complex. As mentioned, landlords are usually responsible for paying council tax on HMOs. However, this doesn’t mean you have to bear the full cost yourself.
Many landlords choose to adjust the rent to include the cost of council tax. This approach allows you to recover the expense while simplifying the payment process for your tenants.
The Consequences Of Not Paying On Time
While council tax may seem like a straightforward expense, failing to pay can lead to serious consequences. It’s crucial for both landlords and tenants to understand the potential ramifications of missed payments:
- If council tax is not paid on time, the local authority will send a reminder notice after approximately two weeks.
- Following this reminder, there’s a seven-day window to make the payment.
- If payment is not received within this period, or if it’s the third time a reminder has been issued for missed payments, a ‘final notice’ will be sent.
- Failure to respond to the final notice can result in legal proceedings, potentially leading to court summons and additional fees.
For landlords, it’s important to note that if you’re responsible for council tax on a property, these consequences could directly affect you. This underscores the importance of staying on top of payments and ensuring clear communication with tenants about their responsibilities.
Sounds Tough?
Proper tenant selection and clear communication about financial responsibilities are key to minimising council tax-related problems. However, managing these aspects of property letting can be time-consuming and complex, especially when dealing with multiple properties or HMOs. This is where professional support can make a significant difference. At Pure Lettings, we specialise in comprehensive property management services tailored to the needs of landlords. Our experienced team handles every aspect of the letting process, including council tax regulations and making sure the local authority is correctly updated on who is responsible for paying, based on move in and out dates and void periods. Contact Pure Lettings today to discover how our expert services can streamline your property letting experience.
