Council tax is something every household in the UK must deal with, but when it comes to rental properties, the question can become a little confusing. If you’re a landlord, you may be wondering, does a landlord pay council tax? The answer depends on a few key factors, such as the type of tenancy agreement, whether the property is furnished, and whether it is occupied or vacant.

In this blog, we’ll break down the rules in simple terms so you understand when a landlord is responsible for council tax, and when it falls to the tenant.

What Is Council Tax?

Council tax is a local tax set by councils in England, Scotland and Wales. It helps fund essential local services like rubbish collection, schools, road maintenance and social care. The amount payable depends on the valuation band of the property, its location, and sometimes who lives in it.

Every residential property is assigned a council tax band (from A to H in England), and someone must be legally responsible for paying the bill. The key question is: who is that person, the tenant or the landlord?

When Tenants Are Responsible for Council Tax

In most standard rental situations, the tenant pays the council tax. This is especially true if the property is let on an assured shorthold tenancy (AST) and the tenant lives there as their main home. The tenant’s name is added to the council tax account and they receive the bill directly.

Even if the landlord owns the property, they are not responsible for council tax whilst the property is occupied by a tenant on a private residential basis. It is considered the tenant’s responsibility, just like their gas, electricity or water bills.

When a Landlord Must Pay Council Tax

There are certain situations where the landlord becomes liable for council tax. The most common cases include:

1. The property is empty
If there are no tenants in the property, whether due to a gap between tenancies or because the home is being refurbished, the landlord is responsible for paying council tax during that period. Some local councils offer discounts for empty homes, but this varies depending on the area and how long the property remains unoccupied.

2. The landlord rents out the property as a house in multiple occupation (HMO)
If you let the property to several unrelated tenants who each have individual tenancy agreements (such as in a student house or shared accommodation), the landlord is usually responsible for council tax. This is because the tenants do not have joint responsibility for the whole property, and the council treats the property as a single unit with the landlord as the liable person.

3. The tenancy agreement includes bills
If your rental contract clearly states that council tax is included in the rent, then the landlord is responsible for paying it, regardless of who lives in the property. This is common in serviced accommodation, short lets, or where the landlord chooses to offer an “all bills included” package.

What Happens If No One Pays?

If council tax isn’t paid, the local authority will contact whoever is listed as liable. In tenanted properties, this is usually the tenant. However, if the council cannot trace the tenant or if the property is empty, they may turn to the landlord. That’s why it’s important for landlords to keep their property records and tenancy agreements up to date, and to notify the local council about changes in occupancy.

Council Tax Discounts for Landlords

Some local councils offer council tax discounts or exemptions for certain landlords. For example, if the property is:

• Unfurnished and empty, you may be entitled to a short-term exemption or discount.

• Undergoing major repairs or structural changes, a temporary exemption may apply.

• A student property, the tenants may be exempt from paying council tax, but this doesn’t automatically mean the landlord is liable.

Every local authority has slightly different rules, so it’s best to check directly with your council to see what you might be eligible for.

Why It Matters for Landlords

Knowing whether or not you must pay council tax helps you organise your property finances more accurately. If you manage multiple properties or HMOs, council tax can become a significant outgoing cost, especially during void periods.

Including or excluding council tax in tenancy agreements can also impact how you price your rent. If you’re offering an “all bills included” package, you need to factor in the average council tax cost for the area and band.

Understanding your legal responsibilities also protects you from unexpected letters or fines from the local council. It’s always a good idea to notify the council when a tenant moves in or out, and keep records of tenancy dates and agreements.

How Cribs Estates Can Help Landlords with Council Tax Matters

At Cribs Estates, we work closely with landlords across London to manage every aspect of their lettings,  including handling council tax responsibilities. Our team ensures that the right party is registered with the council, advises on how to minimise costs during void periods, and helps HMO landlords stay compliant with all local rules.

Whether you need support with tenancy agreements, HMO management, or advice on including council tax in your rental packages, we’re here to guide you at every step. Our property management service takes the hassle out of letting, so you can focus on growing your investment.