Council Tax and Rolling contracts

Council Tax and Rolling contracts

21:18 PM, 18th November 2014, About 10 years ago 20

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I use a rolling contract for all my properties as my tenants are all local and tend to be long term, I have a 2 months notice period after the 6 month period and let the lease run on a rolling basis never had a problem doing it this way for 10 years.

However a word of warning, I have just found out that due to the changes in council tax law making us liable to pay the council tax from when the tenancy is up this only goes up until the end of the 6 month short Hold Tenancy agreement.

Believe it or not if the Tenant gives you notice at the end of the tenancy and does not pay the council tax it is the landlords responsibility because the tenant no longer has a Material Interest in the dwelling and if they do a runner even having given notice you are liable for council tax but you are not able to take control of the property until the notice period is up.

RayCouncil Tax


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Comments

Ray Doyle

14:11 PM, 19th November 2014, About 10 years ago

Lou, i think it is a good clause to add,but could maybe do with a bit more as to the fact that the landlord will claim any unpaid council tax from the tenant up until the end of the notice period.
or drop the "Until the Tenant Vacates the property" As it gives the impression again that the Tenant is only liable up until they vacate rather than till the end of the notice period.

Am not nit picking am just trying to get the best clause wording to add as will renew all my agreements with it

AnthonyJames

14:11 PM, 19th November 2014, About 10 years ago

Reply to the comment left by "Recardo Knights" at "19/11/2014 - 13:38":

Recardo, councils now want their council tax whatever the owner's situation. In my area, the council has abolished discounts for periods of unoccupation or major renovation, even if you are bringing a wreck back to life and have no gas or electricity or, it seems, even a roof on site. If there is a building capable of supporting life, they want to tax it. The question of whether or not you think you are using any council services is irrelevant: the libraries are still there waiting for you to use them, the roads still need to be repaired, the police still need to do their paperwork, etc.

The only discounts that remain are 100% if the house is solely occupied by full-time students (this surely is the next perk to go?), 100% if you are dead or in prison or a church minister, and the 25% single person discount. This creates a perverse incentive if you are renovating or have a void on a rental property: it pays to say that you are living temporarily in the property, because at least that way you will get a 25% discount rather than 0%.

Ray Davison

14:39 PM, 19th November 2014, About 10 years ago

Then get yourself put in prison and you get 100% discount - voila! How perverse is that?

Ray Davison

14:48 PM, 19th November 2014, About 10 years ago

However to be serious, the clause needs to say something like '... until the end of the tenancy with vacant possession'. The issue of when the tenancy ends is for another decision it may be by court order. So if a tenant leaves one week into their notice say then they are responsible to the LL for the CT that the council will collect from the LL. Just another thing that may need to come from the deposit as if there isn't often enough other costs.

If the tenant does a runner and therefore the tenancy has not formally ended (Unless you get a court order) the tenant continues to be responsible to the LL for council tax even if the council considers them non resident. Of course getting the money is another thing - but you have six years!

Kulasmiley

22:09 PM, 19th November 2014, About 10 years ago

Well guys, next year The Welsh Government are going to supply ALL our tenancies including all the wording. Guess who might be responsible for the council tax then???
Just because a tenant leaves earlier than their agreement states it doesn't mean their ctax "liability" stops dead, it goes with the term of the tenancy, and that's their problem. I have appealed to council on this and they agreed and billed the tenant UNTIL my new tenants moved in.

All BankersAreBarstewards Smith

22:22 PM, 19th November 2014, About 10 years ago

AA where can I find more information about this ..... thank you

Rob Crawford

23:21 PM, 19th November 2014, About 10 years ago

Reply to the comment left by "AA Properties Wales " at "19/11/2014 - 22:09":

Maybe a new thread on this?

Michael Barnes

17:08 PM, 21st November 2014, About 10 years ago

I've just been trying to update my agreement template along the lines suggested here, and have come to the conclusion that a "tenant's responsibility to pay up to the end of the notice period or the date that vacant possession is given back to the landlord" applies to everything that the tenant pays that is calculated on a daily basis. That includes
- rent;
- water rates;
- gas and electricity standing charges;
- Telephone.

I found myself getting into a bit of a mess because there are two clauses in my agreement:
one for the tenant to pay the rent;
one for the tenant to pay all other charges associated with the property.

I was also trying to be 'nice' and 'helpful' by
1. saying that if I re-let before the end of the notice period, then the tenant would no longer be liable for those charges, and
2. putting in a 'simple' explanation of what the clauses mean to the tenant.

But I am getting to about 25 lines to say this (twice).
I am going to have to re-think.

It also struck me that if a tenant leaves before the end of my notice period, then is it reasonable/legal to charge the tenant up to the end of the notice period?

AnthonyJames

17:36 PM, 21st November 2014, About 10 years ago

Michael - I don't see why it would be unreasonable to bill utility costs to the tenant if he or she leaves before the end of the notice period: the tenant is legally obliged to pay rent to the end of the notice period and has the right of occupation, even if she chooses to move out. The same should apply to the utility bills that provide heat and lighting and power for the fridge - she would pay the bills during a holiday period, so why not if she vacates the property too, whilst retaining responsibility for it?

I would only reimburse the tenant if I re-let the property to someone else before the notice period had expired, or if I had workmen in the property doing renovation works.

Romain Garcin

17:40 PM, 21st November 2014, About 10 years ago

I think that simpler is better and that the potential for c*ck up increases with every word one adds in his tenancy agreement, so best not to write anything more than needed.

Presumably the level of rent and when to pay is already clearly stated in the agreement, so in my view there is no need to add anything.

Regarding utilities and council tax, I would just state that the tenant is responsible for those until the tenancy has ended and vacant possession has been given to the landlord.
That's clear and simple (but hopefully not too simple).

If you agree to an early surrender then the clause above will apply simply by the fact that the condition is met only when the surrender becomes effective and the tenant vacates.
If the tenant leaves before his notice to quit expires and you treat the tenancy has continuing then, again, the condition above is not met until the expiry of the notice and the tenant remains liable until then.
Likewise if the tenant overstays his notice as he hasn't given vacant possession back.

If the agreement just states that tenant is responsible for utilities and CT then that already covers the whole of the tenancy.

[I want to emphasise that I am not a lawyer, so these are just my own views]

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