HMO Tenants and Council Tax: Who Pays?

I let out an HMO on a joint tenancy contract to students via a letting agency. Three young people have rented it. I thought they were students, but I discovered they are employed. Their tenancy agreement states that they are liable for paying council tax. I have, however, been sent a council tax bill for council tax arrears, and the council is threatening me with legal action. The tenants are refusing to pay. What can I do?

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