Who will be responsible for council tax depends on:

  • what type of tenancy your tenant has
  • if the initial tenancy end date has passed

A tenant with a tenancy for six months or more holds a material interest in the property. If they move out before the end of their tenancy, they are liable for unoccupied charges until their tenancy end date.

Once a tenant’s tenancy expires

If they stay on without a new tenancy their tenancy becomes a statutory periodic or rolling tenancy. This means they no longer hold a material interest in the property. This is unless there is a continuation clause in the tenancy agreement. So:

  1. a tenant’s six month tenancy ends
  2. it becomes a rolling or periodic tenancy
  3. they are not liable for any empty charges once they move out
  4. the only way they can be held liable is if their tenancy agreement contains a continuation clause

Continuation clause

If your tenancy agreement includes a clause stating that the tenancy will continue after the initial term expires:

  1. the tenancy will continue rather than ending
  2. there is no statutory periodic or rolling tenancy
  3. even if they move out, the tenant remains liable until the tenancy is terminated

You should be careful not to accept an invalid notice or an early end to a tenancy.

If you let the tenant return the keys before the tenancy ends it could be seen as accepting an early end to the tenancy.

Examples of who is liable for unoccupied periods

These examples assume the landlord does not accept the early termination of the tenancy. Sometimes a landlord or agent agrees to keys being returned before the end of the tenancy. This could be seen as accepting an early end to the tenancy.

  • A tenancy is for six months. The tenant gives correct notice on 1 July to leave on 1 August. In fact, they leave on 15 July. The tenant will be liable for council tax until 1 August.
  • A six-month tenancy has expired but there was a clause stating it will continue after the initial term ends. The tenant abandons the property without giving any notice to the landlord. The tenant will remain liable until the tenancy is truly at an end.
  • A tenant with a six-month tenancy gives notice on 10 July to leave on 30 July, and leaves on 30 July. If the landlord rejects the invalid notice or does nothing to accept the notice is valid the tenant will remain liable. This is until the landlord accepts the tenancy has ended or a valid notice is given and expired.
  • The tenancy is for six months. The tenant leaves after four months. The tenant will remain liable until the end of the term.

In-between tenants

When you are in-between tenants, you will be responsible for paying the bill.

There is no reduction in council tax for empty and unfurnished properties.