Council Tax information FOR LANDLORDS
What is the definition of a House of Multiple Occupation (HMO) for council tax calculations?
An HMO is defined in law for council tax purposes as a property that:
1. was originally constructed or subsequently adapted for occupation by persons who do not constitute a single household (some of these properties will hold a HMO licence from Warwick District Council, some may not), or
2. is inhabited by a person who, or by two or more persons each of whom, is either a tenant of, or has a licence to occupy, part only of the dwelling; or has a licence to occupy but is not liable (whether alone or jointly with other persons) to pay rent or a licence fee in respect of the dwelling as a whole.
If you are a landlord of a House of Multiple Occupation (HMO) - where your tenants have their own room and shared facilities (this includes where tenants have access to only part of the property) - the landlord will be responsible for the council tax liability regardless of whether you have tenants in or not. This means the bill will stay in your name as the landlord or owner.
Please note that the legal definition for council tax HMOs is different to that of the Housing Act legal definition. This means that for council tax purposes your property may be considered an HMO but Private Sector Housing may not consider it to be one.
Student properties:
If you own a HMO and all your tenants are students – you will be the liable person for the council tax so the bill will remain in your name, but as long as all student proof has been received you will be awarded a full student exemption on your council tax bill.
If you own a property that is not classed as a HMO for council tax purposes and all your tenants are students – the tenants will be the liable people for council tax and they will receive their own full student exemption once their student proof has been received.
For both HMO and non HMO properties the amount of student discount or exemption will vary depending on whether you have any non students in the property. Where one resident is a non student, regardless of the number of students who also live there, the charge for council tax will be 75%. If there are 2 or more non students, a full charge will be payable by the liable party.
Liability between tenant lets:
As a landlord you are responsible for the council tax liability in between tenanted lets. Warwick District Council does not offer any discounts for empty homes. If you have already informed us of a change in tenant, you are required to keep paying your council tax until you receive an amended bill. You will be refunded any monies overpaid.
Council tax that is included within the tenants rent.
If your tenant has a tenancy agreement that states their council tax payments are included in their rent we will still make the tenant liable for council tax as they are the occupier of the property. Unless this is a HMO as above where the landlord or owner stay liable. You are of course able to make payments against their council tax account with their prior permission, but the liability will always be in the name of the tenants.
Keeping us informed of any changes:
We know that landlords are busy, but the council should be kept informed of all tenancy changes within 21 days. This enables us to provide an efficient service, send correct bills and award discounts and exemptions promptly.
If you are a landlord or agent (such as a Letting Agent, Estate Agent, Housing Association) and you have a tenant moving in or out of a rental property please use our online form to let us know:
www.warwickdc.gov.uk/xfp/form/333
