Gemma, a landlord, contacted Landlord Advice to get advice on who was responsible for the rates on the property she was renting to her tenant. The tenancy agreement stated that the tenant would be responsible for the rates. However, Gemma had been told that, because the property’s value exceeded £150,000, the landlord might be the one responsible. Gemma sought advice as she was unsure about her obligations on rates and whether the tenancy agreement was fair.
What we advised
Our adviser explained that tenants can be responsible for rates in two main ways:
- Legal liability: This applies when the property’s Rateable Value exceeds £150,000. According to Article 20 of the Rates (Northern Ireland) Order 1977, the occupier, rather than the owner, is responsible for paying the rates.
- Contractual liability: This typically occurs when the tenant’s responsibility for rates is specified in the tenancy agreement and the Tenancy Information Notice. In this case, the agreement will either state that the rent includes rates or that separate amounts are due for rent and rates, regardless of legal liability.
Guidance on Rate Rebate
The adviser also explained what happens when a tenant applies for a Rate Rebate:
- The landlord must confirm the tenant's liability for the rates.
- If the tenant qualifies for the rebate and the landlord confirms the tenant’s liability, the rebate is paid directly to the landlord’s rates account.
- To avoid paying rates twice, the landlord should adjust the monthly rent accordingly.
The adviser also explained that when a tenant applies for Rate Rebate, the landlord must confirm the tenant's liability. If the landlord is able to confirm that the tenant is liable and the tenant qualifies for a Rate Rebate, the rebate is paid directly to the landlord’s rates account. The landlord should then adjust the monthly rent to avoid paying the rates twice.
Outcome
Gemma ended the call feeling much clearer and more confident about her responsibilities regarding the property's rates.