Who pays council tax in a HMO?
I am now slightly concerned about who is liable for the council tax. Me as the landlord or them as the tenants.
I have checked on the Coventry City Council website (the local tax authority) and they say (in their landlord information section that "In some cases the owner, not the resident will be liable. These cases include:
* Houses in multiple occupation"
They then go on in the faq section to give the example that a HMO would include the situation where 3 friends are renting a house together. This would count as 2 or more different house holds (three in fact) and so it is the landlord and not the tenants that are responsible for this.
Does this make the fact that I have put in the tenancy agreement that the tenants pay the council tax invalid?
Do I then have to pay the council tax but put up the rent to cover it? Which would of course mean that I would have to pay income tax on it.
Or have I got the wrong end of the stick completely.
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