Guarantor but left with Council Tax!

Guarantor but left with Council Tax!

10:28 AM, 16th February 2018, About 6 years ago 18

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A tenant who signed a one year contract in November 17 called in January saying she was moving out the following week!

My Letting agent advised the guarantor would have to pay and for me not to worry as the contract would only change when a new tenant takes over the property.

I have now received a tax demand today from council.

Question is what should I do now?

Property is in Sunderland and I also need recommended workmen/company to get it ready to rent again.
I would also consider a lease option.

Many thanks

James


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Comments

Mandy Thomson

16:17 PM, 17th February 2018, About 6 years ago

The tenant has contracted for the entire fixed term, so they are liable for rent and council tax and utilities (unless the landlord was paying either or both as part of the agreement). There is an opinion that the landlord should nevertheless mitigate the tenant's losses by making every reasonable attempt to get a replacement tenant, BUT I believe a recent case, Reichman v Beveridge has settled that question.

steve watt

16:29 PM, 17th February 2018, About 6 years ago

Reply to the comment left by Chris Jordan at 16/02/2018 - 12:04
I'm interested in the one month council tax exemption you refer to. I can't find any reference to this on the internet.

ReluctantNorthernLandlord

17:46 PM, 17th February 2018, About 6 years ago

Reply to the comment left by Chris Jordan at 16/02/2018 - 12:04
Some authorities allow 2 months on empty property. A postcode lottery!

Luke P

18:02 PM, 17th February 2018, About 6 years ago

Reply to the comment left by steve watt at 17/02/2018 - 16:29
It’s not standards across all LAs. Some do six months, others 3, many just 1 month and several no exemption at all. I have Property across two Council areas -one is zero, whilst the other is a single month (which the tenant can claim).

cs

12:14 PM, 18th February 2018, About 6 years ago

The key case in respect of whether a tenant remains liable after vacation for council tax purposes is that of Leeds CC v Broadley (google leeds cc v broadley court of appeal hearing for the details), this simply clarified the existing law on the matter.

If the tenancy term was for 6 months or more the tenant falls liable for the council tax under s6 of the LGFA 1992 until either the end of the term is reached (at which case the council tax situation needs looked at again), the property is re-occupied or the tenancy is ended.

Chris @ Possession Friend

22:19 PM, 19th February 2018, About 6 years ago

Reply to the comment left by Tobias Nightingale at 16/02/2018 - 11:35
Tobias,
The court case I believe your refering to is Leeds City Council v Broadley, The landlord ( Broadley ) lost the case because it was held that the Fixed term going ( STATUTORY ) Periodic was a new tenancy. If the tenancy was a CONTRACTUAL Periodic tenancy { Periodic nonetheless ) the liability for Council tax would remain on the tenant. This is probably the reason a number of landlord Associations have revised their AST's to word them as running on as Contractual Periodic tenancies after the fixed term ends. Just bear in mind you can't use a Rent increase form under Section 13(2) of the Housing Act for CPT's - you'll have to either mutually agree a rent increase, offer and have the tenant sign a new AST -or else serve Possession proceedings.
PossessionFriend.uk

Kate Mellor

10:32 AM, 20th February 2018, About 6 years ago

Reply to the comment left by Chris Daniel at 19/02/2018 - 22:19
Chris, can I just clarify your last comment on use of Section 13 rent increase forms?

My understanding is that you can use them for contractual periodic tenancy, but only in the case where the AST is silent on the matter of rent increases. Where there is a clause for a rent increase in the contractual periodic tenancy it will take precedence over the Section 13 increase and the Rent Assessment Committee will not have authority to vary it.

Which is what it says in Section 13(1)(b) copied below:

"13 Increases of rent under assured periodic tenancies.
(1)This section applies to—
(a)a statutory periodic tenancy other than one which, by virtue of paragraph 11 or paragraph 12 in Part I of Schedule 1 to this Act, cannot for the time being be an assured tenancy; and
(b)any other periodic tenancy which is an assured tenancy, other than one in relation to which there is a provision, for the time being binding on the tenant, under which the rent for a particular period of the tenancy will or may be greater than the rent for an earlier period."

I use a contractual periodic run on for my tenancies, but I also include a clause that the rent will not be increased during the fixed term, but may be increased no more than once per year thereafter (with one month's written notice), and giving the tenant recourse to appeal to the Rent Assessment Committee for a market assessment. So I can increase the rent in line with my AST terms.

Stella

11:04 AM, 9th April 2019, About 5 years ago

Reply to the comment left by Kate Mellor at 20/02/2018 - 10:32
Hello All
Sorry for not keeping up to speed with this thread I would like to thank all whom replied.
The tenant was responsible for the 12 months that agreement was signed for although it took quite a while for the L.A to accept this.

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