UK Landlord Forum / Life

My husband and myself own a 3 story building. Once we have an online agent sorted we will only be allowing 3 tenants. Since the govt altered the rules I believe we will not need an HMO licence (as it's 5 or more tenants according to the govt website.) But will need to adhere to the HMO rules. My other question is will the building's Council Tax bill therefore be distributed between the 3 tenants, which we can add to their rent? OR do we as Landlords have to cover the bill in our name?

In an ideal world you should not really be paying the bills for Tenants.

But, remember, the Council Tax is more targeted at the property... rather than the people... so that three storey house attracts a certain level of Council Tax, based on its Band, regardless of who's in it. Then the actual amount that is due may change depending on who's it it... but definitely not its Band. So, if they're Students no Council Tax will be due; but the Band stays the same. If there's just a single person then 75% will be due; same Band. If there's 2 or more then 100% will be due. At that point you know the total due and also how it's divided.

The Council won't do this for you.

First hit on Google, "RP: In a House in Multiple Occupation (HMO) containing bedsits or where tenants are paying rent for individual rooms on individual tenancy agreements, it is the landlord who is liable to pay Council Tax. Rent should be set to take account of the amount the landlord must pay for Council Tax"

What does the specific council licencing say about HMOs as each council can apply differing rules.

Quote from: Pevans on August 28, 2018, 11:12:20 AM
we will only be allowing 3 tenants. ... I believe we will not need an HMO licence (as it's 5 or more tenants according to the govt website.)

Be careful. It's 5 occupiers, not 5 tenants. If those 3 tenants have a couple of kids, or boyfriends or girlfriends that they move in, you would be over the limit for mandatory licensing. That's mandatory HMO licensing, check your local authority to make sure you are not required to get a licence under additional or selective licensing, or that the local authority haven't issued an Article 4 Direction restricting HMO change of use so that you require explicit grant of planning permission.

Re council tax, see Riptide's first response.

Thanks for your advice. I am contacting my local council.