HA suspended payments

tabskitten

Hello
I have a flat that I 'rent out' to a HA lady who due to being 2K in arrears to me has aggreed to me getting HA to pay me direct for the monthly rent.

I received notice today that due to a ''change in circumstances'' her payments will be suspended for a few weeks whilst under review?

I am interested to ideas as to what the ''change in circumstances'' could be?

(I am told once payment is resumed (if?!) that I will recieve backdated payments......)

Thank you for any speculation that may spread some light for me......:)

Jowo_2

You may find the HB/LHA forum on Landlordzone helpful.

My understanding is that a landlord can approach the local council to arrange to have payments made directly to them when they have arrears of 8 weeks rent or more - I wasn't aware that a tenant can arrange this. So have you actually spoken to the local council to set up direct payments and discuss this or have you taken it on trust that your deceitful tenant has?

Could it be that your tenant has submitted a wrong or fraudulent claim? Or could it be a 2 week period when the tenant is permitted by the local council to contest your claim that she is in arrears and given time to submit evidence that she paid the rent? I've came across threads on MSE before where the landlord has contacted the local council about their LHA tenants arrears and the tenant is given an opportunity to provide proof they've paid.

tabskitten

Both the tenant and I have spoken to the council requesting that the rent be paid direct to me so that is not my concern, the council had no problem with it due to the size of the arrears....

I am just confused as to what she might have done now!!
I think that she may have been letting her bf live in the flat with her.....not sure......
But if she has and he is in ft work may this be what the council are taking issue with?

Jowo_2

tabskitten wrote: »

(I am told once payment is resumed (if?!) that I will recieve backdated payments......)

Thank you for any speculation that may spread some light for me......:)

You may receive back-dated payments for the current suspension period, assuming all is well with the claim.

You will never get paid any of the arrears - once the local council has paid out the LHA to the tenant and they have squandered it on other things, it's up to the landlord to deal directly with the tenant for historic arrears - the council won't pay out twice and will see this as a contractual issue between landlord/tenant. Obviously, the problem with a tenant having no income, is that the landlord is unlikely to ever see the arrears paid back as they have no means in which to repay it.

The problem for some landlords with some LHA tenants is that they receive it directly, it feels like Xmas and birthday rolled into one and they spend it on things other than their rent. This is why some landlords will not accept LHA tenants who are much riskier to deal with than those in employment.

However, if payments are directed to the landlord (if the tenant is deemed to be vulnerable or the landlord proves they are 8 weeks plus in arrears), and if the tenant has submitted a fraudulent claim, the landlord will be forced to pay back the LHA they received directly from the council straight back to them. So that's double edged, too.

Next time you have a LHA tenant, undertake full tenant screening to rule out those with poor credit records and poor previous landlord references and demand a guarantor as a condition of accepting them. The last landlord may give them a good reference just to get rid of them but the one before might be a bit more frank.

Jowo_2

tabskitten wrote: »

I am just confused as to what she might have done now!!
I think that she may have been letting her bf live in the flat with her.....not sure......
But if she has and he is in ft work may this be what the council are taking issue with?

As you are aware, LHA is a means tested benefit, therefore any earned income and a partner's income is taken into account.

Therefore, perhaps your tenant is being investigated for benefit fraud if she did not declare that her partner is earning.

Also, if her partner does live with her and does have a job, why could she not afford the rent? If she was also fraudulently receiving LHA and her boyfriend was contributing to her living expenses, it does rather look dismal that she chose not to pay the rent when she had either state benefits and/or a partner's income to pay for it...

Why don't you evict her - no tenant is better than a bad tenant.

By the way, you should be informing your tenant in writing about the new arrears, impressing on her that it's her responsibility to pay the rent or you will commence eviction proceedings shortly.

Some LHA tenants have the reputation of being rather passive and blaise about rent arrears, seeing it as an issue for the landlord to suffer and something the landlord is responsible for sorting out with the council, that it's not their fault nor their responsibility to resolve. You should remind the tenant that she is contractually obliged to pay the rent and not accept any excuses or inaction. Don't be influenced by sob stories, be professional and keep everything in writing. Serve an S21 now if there isn't one in place. I've looked over your historic posts on this tenancy and you seem unusually sympathetic to someone who has squandered your rent money and may have submitted a false LHA claim.

tabskitten

Jowo wrote: »

As you are aware, LHA is a means tested benefit, therefore any earned income and a partner's income is taken into account.

Therefore, perhaps your tenant is being investigated for benefit fraud if she did not declare that her partner is earning.

Also, if her partner does live with her and does have a job, why could she not afford the rent? If she was also fraudulently receiving LHA and her boyfriend was contributing to her living expenses, it does rather look dismal that she chose not to pay the rent when she had either state benefits and/or a partner's income to pay for it...

Why don't you evict her - no tenant is better than a bad tenant.

By the way, you should be informing your tenant in writing about the new arrears, impressing on her that it's her responsibility to pay the rent or you will commence eviction proceedings shortly.

Some LHA tenants have the reputation of being rather passive and blaise about rent arrears, seeing it as an issue for the landlord to suffer and something the landlord is responsible for sorting out with the council, that it's not their fault nor their responsibility to resolve. You should remind the tenant that she is contractually obliged to pay the rent and not accept any excuses or inaction. Don't be influenced by sob stories, be professional and keep everything in writing. Serve an S21 now if there isn't one in place. I've looked over your historic posts on this tenancy and you seem unusually sympathetic to someone who has squandered your rent money and may have submitted a false LHA claim.

I was not posting the question about her arrears- they are being dealt with and she pays off a set amount each month, she has been true to her word on this and signed a legal agreement to pay them at said amount per month so I have no couse to evict her now LHA are (were) paying me direct.

I think that the issue may be her bf but i guess that i have no choice but to wait out the investigation?!
Am calling letting agent now to bully for info........!!