Tenant on Housing Benefit

jinxters

Hi, have been in a similar situation before, and was ultimately patient-probably to the point of being a mug! You mention you've got insurance for the property, I know some buy to let insurance policies cover non-payment of rent, you might want to check for that.

I currently have a housing benefits tenant, and I don't want to worry you further, but all the initial checks came back fine but the first rent payment was under, and it since transpires that the council overpaid my tenant for a previous property, and now they are deducting an amount each month from her now benefit, which means that although I get the rent direct, it is not in full. It is down to her to top up any outstanding amount from what she can afford, which needless to say, I am still owed-so for everyone, this is another thing to look out for.

Anway, thats the bad news, there might be a ray of light-in that presumeably in your tenancy agreement there is something along the lines of 'must behave and not upset the neighbours' etc? You mentioned that you're getting lots of complaints-advise your neighbours to report everything to the Police, there may be options under Antisocial behaviour or Public Order offences which might give you a lever is she is charged with anything, or even reported.

Hope this helps, i wish you lots of luck,
xx

clutton_2

how much per week is the council clawing back from her debt to a previoius landlord ?

Graham_Devon

Just one word of caution....happened to a family friend.

The house insurance may not pay out (or likely won't pay out) if there is no permission from the mortgage lender to sublet. Tenants had a small trashing party on the way out to get their own back at the landlord. Of course nothing happened to them. Insurance didn't pay out due to him not informing the mortgage company he was subletting. So the insurance company used the clause to get out of paying (rightly, I suppose).

Reading this thread, there are many people suggesting the OP has done all they can. They haven't, they rushed in and let others do the work on their behalf, and unfortunately got the bitter end of being a landlord. I've noticed people suggesting the first thing is to get the tenants out, rather than sort out renting out the house by the book. I'd seriously look at renting out the house by the book to make sure you are covered from an insurance perspective (have you even told your insurers you are renting out?).

Could have cost the family friend a LOT more if the damage was higher, but cost them a fair whack to repair the damage caused to spite the landlord. Was a few years ago now however, so things may have changed?

Ultimately, no one is in the right here.

skintsue

Graham_Devon wrote: »

Ive noticed people suggesting the first thing is to get the tenants out, rather than sort out renting out the house by the book. I'd seriously look at renting out the house by the book to make sure you are covered from an insurance perspective (have you even told your insurers you are renting out?).

Thanks Graham for the advice. We are now doing everything we can to sort out the mess.

We notifed the LA that we had found out the error in not asking the mortgage company, and sent them a copy of the letter we were taking to the Bank to begin the process. The LA told us not to do so until after the weekend, so they could check out what we should do with their solicitors. That was 3 weekends ago, so I assume they are hoping it will go away.

Regarding the insurers - the same company recommended by the LA, who did the tenant and guarantor referrals, are the ones who arranged the LL insurance. They found out some stuff about the tenant etc. but the LA chose not to mention it.
I will be getting onto them ASAP tomorrow to find out where we stand, as legal advice is meant to be in with the insurance.
I wonder if we are covered by the insurance company for them to give legal advice on why we might not be covered for insurance.

Should we be concerned that since we told the LA about the non permission to let they have still continued to manage the property (in a fashion) and will have taken 2 sets of management fees for handling the rental, even though the property should not be rented without permission?

I can see most of tomorrow is going to be taken up with phonecalls to each corner of the country trying to sort this out.

skintsue

OMG! I can't believe it. Tenant told LA she had paid rent on the 25th (Thursday) via internet banking. LA told me what she had done, and that it would take up to 3 working days to arrive in their account (Tuesday, with it being B/Hol on Monday. I thought Wednesday at the latest).
Just rung LA to find she still hasn't paid - she claims that because it was a BH the bank couldn't pay the money out. She SAYS she has put in a BACS payment today and it will take 3 working days to get to LA, OR she can cancel BACS and bring in cash tomorrow. What are the chances of that happening?

I think she is taking the !!!!!! big style (Sorry if that offends - but what I want to put is a lot worse!)

She is coming up to the 6 month rental, so I said I wanted to use that 6 month break to get her out. LA's response - I had to ask for it to be included. I didn't even know about it to ask for!
When I brought up the fact they had set me up with a HB tenant without a suitable guarantor, I was asked what did the information say when I signed it.
It said I was aware that she was on HB, and that she had a guarantor - nothing about the fact that the referal agency assessed her as unsuitable, and they didn't bring it to my attention.

I could have done less of a botch up job if I'd done it by myself and translated the paperwork from ancient Greek. Why pay for the references if the were not going to be used, and why use an agent if they are not going to do a professional job? I could have got the same result by letting her rent and saved myself £100 per month in management fees.

skintsue

All the paperwork is now in order, the breaches of tenancy etc are all highlighted, the rent has still not been paid and everything is on file.
I am just leaving everything on hold until Monday morning for a final check. Maybe the rent might be in by then. :rotfl:
It's the last weekend before school starts, and I want to spend it with my daughter, not stressing about some Emma!

I've checked all the court documents that I will need, and what I have to notify her about. Do I have to give her a copy of the evidence? Should I send copies to the LA for their records?

I have contacted the LA head office - they are a franchise - and told them the problems I have been having. Whether anything comes of it is another matter.

One problem at a time - tenant out (hopefully), then put the complaint in to the LA? If she is kicked out will that make my point more relevant about her not being suitable, or is that irrelevant?
I have been going through what the LA should, or should not, have done in their contract and code of conduct, finding what they are meant to do, and I've almost run out of highlighter pen.
Can I charge them for a replacement ?

gingergee

hope you get it sorted soon!! and can i say how brill i think clutton is!! advice is spot on and said in a really reassuring, unbiasd and appropriate way!!! xxxx

zaksmum

Hope anyone even remotely considering taking on a tenant on HB will think again after reading this horror story.

Keeping my fingers crossed for you Sue.

aless02

zaksmum wrote: »

Hope anyone even remotely considering taking on a tenant on HB will think again after reading this horror story.

Keeping my fingers crossed for you Sue.

That's a bit unfair - not all people receiving HB are incapable of paying their rent on time. Some just need a little extra cash to help their finances stretch. We receive HB and have never been late on rent in 4 years of renting.

Sorry for your situtation Sue, but I really wish people wouldn't paint everyone with the same brush. Good luck sorting out your tenant but I think it's good for others to remember that the EXACT same situation could have happened with a non-HB tenant.

donnap83

God, she's sounds like nightmare.

Please keep us informed, i've subscribed to this thread.

Best of luck x