24

May, 2017

Wednesday

Results 1 to 10 of 10
  1. #1

    Default Renting whole house to one tenant or renting each room individually...

    Afternoon all,

    My current tenants are due to move out of my rental property in July. The house is in reading and I don't live in the property. It's a 2 bedroomed terraced house.

    I've always rented to either families or 2 friends. I'm toying with the idea of renting to 2 separate individuals and wondered what pitfalls or other things to be wary of?

    By renting to 2 unconnected people the indication is I'll achieve a higher rent from each person. In terms of council tax, bills etc whose name should be on the bills? One tenant I'm guessing would have to take the lead, could anyone provide any guidance?

    Thanks

    Adam

  2. #2
    Join Date
    Feb 2014
    Location
    Midlands
    Posts
    12,314

    Default

    If you rent to two individuals seperately, you'll have to pay the council tax (which might be why the rent looks higher online).
    The council will bill you regardless of what you agree with the tenants.

    If you rent to two people "jointly" that isn't the case, but it's more complicated if one wants to move out and the other doesn't.

    The tenants can sort out who's on the bills, but often the arrangement is that it's your name, but the tenants agree to pay the bills.
    When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
    Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

  3. Thanks: 1

    + Show/Hide list of the thanked


  4. #3

    Default

    Thanks for your reply. Why would I be responsible if I had 2 separate individuals as opposed to say a family? How would the council know they were 2 unconnected individuals?

    I guess if tenants agree to pay bills but my name bring on the actual bills could prove risky especially if they say run up a big phone bill for example....

    Thanks

  5. #4
    Join Date
    Feb 2014
    Location
    Midlands
    Posts
    12,314

    Default

    Yes, it's risky with the bills, but otherwise, the two unconnected tenants have to agree to trust each other.

    You are responsible for the council tax because that's what the rules about who pays council tax say is the case.
    The council would find out when you tried to let them know you weren't responsible for it (or when one of the tenants tried to accept responsibility).

    The council tax and extra risk are why a higher rent is charged.
    When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
    Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

  6. Thanks: 1

    + Show/Hide list of the thanked


  7. #5
    Join Date
    Nov 2015
    Posts
    1,224

    Default

    You may also find that the place isn't as well looked-after, especially the common areas which they won't see as their personal space.

  8. Thanks: 1

    + Show/Hide list of the thanked


  9. #6
    Join Date
    Sep 2009
    Posts
    793

    Default

    Quote Originally Posted by DPT57 View Post
    You may also find that the place isn't as well looked-after, especially the common areas which they won't see as their personal space.
    And if the common areas were damaged, you would need to know who to charge it to as they are not jointly liable.

  10. Thanks: 1

    + Show/Hide list of the thanked


  11. #7

    Default

    The council tax (liability for owners) regulations 1992 (as amended) mandate that the landlord will remain liable (as per S8 of the LGFA92) where tenants do not rent the whole property and/or only have a rental liability for part of the property.

    Craig

  12. #8
    Join Date
    Mar 2009
    Posts
    16,452

    Default

    Quote Originally Posted by ss002d6252 View Post
    The council tax (liability for owners) regulations 1992 (as amended) mandate that the landlord will remain liable (as per S8 of the LGFA92) where tenants do not rent the whole property and/or only have a rental liability for part of the property.

    Craig
    Craig: What would your view of "whole property"? My understanding is that if any part is excluded on a tenancy (eg locked cupboard or shed for tools, other items) then landlord is liable for CT. Any test cases or gov.uk guidance?
    I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...

  13. #9
    Join Date
    Oct 2009
    Posts
    9,179

    Default

    I rent to one tenant, who pays the bills, and the others are her lodgers. This has worked fine for nearly 17 years.

  14. #10

    Default

    Craig: What would your view of "whole property"? My understanding is that if any part is excluded on a tenancy (eg locked cupboard or shed for tools, other items) then landlord is liable for CT. Any test cases or gov.uk guidance?
    Depends on the exact situation - take a look at the Valuation Tribunal case of Goremsandu v Harrow London BC [2010] RA 469.

    That case comes at it from the opposite angle - was a tenancy a HMO if the landlord was allowed to use part of the property (which was part of the 'whole property' as far as the tenancy agreement was concerned) ? In this case the landlord used the conservatory for storage but the fact that there was nothing to stop the tenants from using it (as per the tenancy) was found to show that the 'whole property' was rented under the agreement, thus not a HMO.

    This would suggest that tenancies which specifically exclude part of the dwelling ( I suspect sheds could be pushing it as they're not part of the dwelling per se but not been tested to my knowledge) can be regarded as a HMO as they don't allow for rental of the entire property.

    Craig

Similar Threads

  1. Renting one room in a 4 bed house and paying bills advice
    By AJ2 in forum Residential Letting Questions
    Replies: 17
    Last Post: 16-01-2017, 15:25 PM
  2. Tenant is renting room
    By aaronh in forum Residential Letting Questions
    Replies: 10
    Last Post: 02-05-2016, 22:19 PM
  3. Normal Tenancy Agreement vs Renting the rooms individually
    By alejandrog89 in forum Residential Letting Questions
    Replies: 5
    Last Post: 08-01-2016, 22:17 PM
  4. Renting out a room to a tenant on DSS?
    By xLadyDx in forum Housing Benefit Questions (HB, LHA, DSS)
    Replies: 3
    Last Post: 18-03-2014, 12:05 PM
  5. prospective tenant enquired about renting out a room
    By amoss in forum Residential Letting Questions
    Replies: 1
    Last Post: 24-06-2009, 21:52 PM

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •