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Supporting a landlord with rates liability and Rate Rebate claims

Rate liability and collecting rates from tenants can be complicated. We recently gave a landlord advice to help him navigate the process. 

9 April 2025
  • Landlord

Craig, a landlord, reached out to Landlord Advice with a query regarding his rates liability for a property he owned. Rate liability and collecting rates from tenants can be complicated. He wanted to ensure he was complying with all legal requirements.  

Overview of the situation 

  •  Craig had paid Land and Property Services the annual rates for the property in full 
  • the rent he charged his tenant included a monthly amount for rates
  • Craig’s tenant was receiving the housing element of Universal Credit for their rent .He was also entitled to apply for Rate Rebate to help with the rates.  

Landlords’ responsibilities in the Rate Rebate application process 

When private tenants apply for  Rate Rebate, their landlord must create a Rate Rebate account with LPS. LPS requires landlords to complete an online certificate of occupation to confirm: 

  • the tenant is living in the property
  • the tenant is responsible for paying the rates 

Craig’s tenant successfully applied for Rate Rebate. Rate Rebate is usually paid as a credit to the property’s rates account. Because Craig had already paid that year’s rates in full, the backdated Rate Rebate payment would create an excess on his rates account. Land and Property Service instead issued Craig with a cheque in the amount of the backdated payment.  

Guidance provided

Craig wanted to ensure he understood the next steps in the process. Our adviser explained the following: 

  •  the tenant’s monthly rent charge included both rent and rates., The tenant kept up the payment of rates while applying for Rate Rebate The backdated rebate amount should be passed on to the tenant, otherwise Craig would have received the rates payments twice. 
  • Craig was advised to maintain clear records and document the payment to the tenant, ensuring that he followed the correct process should any future issues arise 

Further advice 

If you're a landlord supporting a tenant to claim Rate Rebate, contact Landlord Advice for guidance and support. We're here to help you navigate your legal responsibilities and ensure compliance.  

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