Rent lawfully due from the tenant
Rent is a payment made to a landlord by an occupier for the use of premises.
What is rent
Rent is regular contractual amount paid by an occupier to their landlord for use and occupation of accommodation.[1]
The obligation to pay rent is one of the three requirements for a tenancy to be created.[2] An occupation agreement that does not have an obligation to pay rent could be a licence.
Read more about licenses at Shelter Legal.
Rent reductions
A landlord can reduce rent in exchange for services from the tenant.
A rent reduction must be formalised in a written agreement and specify the value of the services and the agreed reduction.
A rent reduction in exchange for services could be a benefit in kind. Benefits in kind are taxable and must be reported to HMRC.
Additional charges
Rent can include other charges. If a tenancy agreement defines the rent including items like service charges, then the total payment is classed as rent lawfully due.
A landlord can issue possession proceedings for rent that is lawfully due. Some tenancies include a separate obligation to pay charges such as water. These charges are not classed as rent lawfully due and cannot be included in a total sum of rent arrears. [3]
Service charges
Rent can include service charges if this is specified in the tenancy agreement. A tenant can challenge the reasonableness of a service charge if it is included in the rent.
Read more about challenging service charges for leasehold properties on Shelter Legal.
Water charges
A tenancy agreement can state that a tenant must pay water charges to a landlord as part of the rent.
Local authorities and social landlords can make agreements with water companies to collect water and sewage charges from tenants who do not have water meters.
Under the water resale rules landlords who resell water can only charge tenants up to a set limit. [4] Tenants who have been charged more than the maximum allowable amount are entitled to claim a refund. [5]
Landlords who act as an agent for the water company under a different kind of agreement might not break water resale rules. [6]
Council tax charges
Council tax is normally payable by the sole or main resident of the property. [7]
Council tax has a hierarchy of liability that is determined by the regulations. Terms in a tenancy agreement do not override it. For example, a term stating the landlord will pay council tax does not affect the tenant's liability to the local authority.
Council tax is owed to the local authority and does not count as rent lawfully due.
Read more about council tax on Shelter Legal.
Utility charges
A tenancy agreement can state that rent is inclusive of utilities such as electric and gas. It is common in houses of multiple occupation and student properties.
The terms of the agreement must specify the exact terms of payment. A fair usage policy could be written into the agreement that states the amount of energy the tenant can use under the agreement.
Unpaid charges from exceeding a fair usage policy are not classed as rent lawfully due and do not count towards rent arrears. A landlord must issue a money claim in the County Court to recover the excess sum.
Read more about money judgments on Shelter Legal
Liability for rent
A liability arises when a person is legally responsible for something. Only the tenants named on a tenancy agreement are liable to pay the rent.
Sole tenancy
The tenant is liable for the full amount of rent stated in the tenancy agreement.
Joint tenancy
All named tenants are liable for the rent both jointly and independently of the other, regardless of who is occupying the property.
This means that either or both tenants can be hold responsible for the whole rent. It is not possible to argue that one tenant is only liable for a particular share of the rent. This is known as 'joint and several liability'. If a joint tenant fails to pay their share of the rent, then the other will have to pay to prevent the landlord taking possession proceedings.
Read more about joint liability on Shelter Legal
Rent arrears
Where a tenant fails to pay rent lawfully due and rent arrears accrue a landlord could:
start possession proceedings
apply for a money judgment to recover the rent owed
Read more about rent arrears possession at Shelter Legal.
Guarantor agreements
A tenancy guarantee covers the terms agreed to by a landlord and tenant in the initial tenancy agreement. For example, the guarantor could agree to be responsible for a tenant's rent or other financial obligations if the tenant fails to pay.
The guarantor agreement must contain the terms of the guarantee, including what the guarantor can be asked to pay. A guarantor agreement does not interfere with a tenant's liability for rent payments.
Read more about guarantor agreements on Shelter Legal.
Low or high rents
Whether or not someone pays rent for a property affects their rights and how secure their housing is. Courts have decided that it is possible for a contractual tenancy to exist even if no rent is paid.[8]
Where an occupier pays a high or low rent the occupier might not have the legal protections offered by the Rent Act 1977 or Housing Act 1988.
Find out more about occupiers with basic protection at Shelter Legal.
Peppercorn rent
Peppercorn rent is a term used in legal contexts to denote a rent that is nominal or trivial in amount. For example, a rent of £1 per year.
Peppercorn rent can provide evidence that the landlord and tenant intended to form a legally binding contract. It is most commonly used in leasehold agreements.[9]
Last updated: 29 August 2025