Who pays the council tax in an HMO?

Who pays the council tax in an HMO?

Council tax liability in HMO flats in Edinburgh

Edinburgh is a student city and many of Edinburgh’s letting agents manage HMO (Houses of Multiple Occupation) properties. One of the first questions investors and landlords enquire about is – who will be liable for the council tax in an HMO in Edinburgh?

Here are two types of HMO lettings

  • The property is let to a group of sharers.
  • Rooms are let out to individuals.

Flats let to a group of sharers

When a group of friends or sharers occupy a property on a joint tenancy (i.e. they have signed the same lease agreement), it is the tenants who are generally liable for a council tax. If all tenants are full time students, they would be exempt from the council tax. The exemption is not automatic – student occupiers must apply for this. The landlords or letting agents should provide the relevant local authority with the names of new tenants and their move in date.
 

Flats where rooms are let to individuals

In HMO properties where each bedroom becomes a separate dwelling and each tenant signs individual lease agreements, it is the landlord who is responsible for the council tax. Letting agents should recommend that landlords take the additional expense into account when setting rents. In this scenario rents quite often include other amenities, such as internet, gas and electricity.

 
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2024-04-10
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2024-04-10
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2024-04-09
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2024-04-05
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KELECHI OFFOR
KELECHI OFFOR
2024-04-05
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2024-04-05
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2024-04-04
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Femi Faleke
2024-04-03
Fraser conducted our show round and had kind words for us. He was really positive even when we were both unsure of our chances to get the accommodation as the buck doesn't stop with him. But I like his spirit and he's good for business. Great guy...
Imran Razzaq
Imran Razzaq
2024-04-03
Viewing was very friendly and polite
kjb 537
kjb 537
2024-04-03
Returning to the UK after a long period abroad, I called into ELC to express interest in a property and to ask for some advice about how best to make a rental application without the usual UK credit record information. Nicole and Fraser were extremely helpful and reassuring. Highly recommended. Much more personal and personable service than some of the larger Edinburgh agencies.