Tenants in arrears.

scandarahar

Looking a little bit of advice -

Tenants of mine have fallen into arrears due to unemployment but they are getting Housing Benefit. Slowly over the past year and a half they have fallen progressively behind (9 months owing as of now - I maybe would get a call every 2 months or so saying they have the rent). Whilst sympathetic to them - they are decent people with a young family and look after the property - I am now in a position where I am in a fair bit of debt now with the costs of the property (I don't make anything from rental income - it's the same as mortgage etc... costs).

What is the position re the housing benefit. Can I ask that it be paid directly to me or should I have had this option from the start. As said before they are otherwise good tenants and I would be hopeful they may eventually get back on their feet but really don't want to get myself into any more debt all the same.

Any thoughts?

Fire_Fox

They are NINE MONTHS behind??? Why on earth haven't you evicted them? How exactly are they good tenants when they are pocketing the housing benefit and leaving you in debt?? Seriously they are never going to catch up on nine months rent, why would they when the landlord is such a soft touch?

Have you run an advanced search or read the council's/ DWP's website before posting this query? http://www.dwp.gov.uk/publications/specialist-guides/technical-guidance/rr2-a-guide-to-housing-benefit/how-your-benefit-is-paid/

scandarahar

Because I had some nightmare tenants beforehand and what's the alternative - evict and kiss the outstanding rent goodbye? They have 3 small children and maybe I am being soft but that's why I'm posting here - for advice...

GDB2222

The simple answer is that, yes, you can have the HB paid to you direct. Just write to the HB dept at your local council stating that the arrears are 9 months and that you want it paid direct. They then check that with the tenant, and assuming there is no disagreement, they will pay you direct.

The downside is that, if the tenant is making an incorrect claim, you could be responsible for paying it all back again. EDIT: I mean limited to the amounts that you receive.

Edit again: And as a landlord, I have also been in that position. I have to say that I thought I was being very reasonable and decent, but in retrospect I think that the tenants were just milking the position for all they could get. As soon as I had the HB paid to me, they upped sticks and performed the same trick on another gullible landlord.

Fire_Fox

You've already kissed it goodbye by letting them get nine months in arrears. They are either pocketing 50% of the LHA or they are living in a property that is too large/ too expensive and they aren't getting full rent paid, in which case they need to move somewhere they can afford. Neither scenario bodes well for you getting your money back. What is to stop them serving notice to quit the minute they get back on their feet? Who is to say the father won't end up with a minimum wage job?

You could be nice and give this family a positive reference about their conduct. Maybe you need to look at your referencing/ vetting process to avoid nightmare tenants? If you get a CCJ against them you may eventually be able to get your money back.

dancingfairy

Maybe you need to send them a rent statement and state that while you have been patient up until now, time is running out. How long do you want to subsidise them for? Whilst it is commendable that you have been kind/charitable for this length of time it's not really doing you/or them any good.
Perhaps they want a council house and they won't get it until they are formally evicted? In which case maybe you need to get on and evict them.
9 months is a massive amount of rental arrears though (especially in 18 months!!!!) and it is very unlikely they will be able to bring the arrrears up to date in a short space of time.
Either get them to pay all arears before a certain time or you'll start eviction proceedings (and then do so) or set out a payment plan that you are happy with ie x amount up front plus rent on time plus a certain amount towards the arrears (and again if they fall behind go for eviction).
df

scandarahar

Fire_Fox wrote: »

You've already kissed it goodbye by letting them get nine months in arrears. They are either pocketing 50% of the LHA or they are living in a property that is too large/ too expensive and they aren't getting full rent paid, in which case they need to move somewhere they can afford. Neither scenario bodes well for you getting your money back.

You could be nice and give this family a positive reference about their conduct. Maybe you need to look at your referencing/ vetting process to avoid nightmare tenants?

Or maybe I could just ignore your 'good' advice. Are you a landlord or do you just value your own opinion?

scandarahar

Thanks to the other posters though who actually had something useful to contribute..

terryw

OP

Also have a look at this for claiming £3.50 a week from DWP from the rent arrears.

http://www.dwp.gov.uk/docs/tpp-new-creditor-guide.pdf

Apart from anything else having the rent paid direct and this £3.50 it shows the tenant that you are serious.

Fire_Fox

scandarahar wrote: »

Or maybe I could just ignore your 'good' advice. Are you a landlord or do you just value your own opinion?

I'm an ex-landlady, m'dear. :T No point in starting a thread if you only want to hear platitudes, most professional landlords will tell you the same.

scandarahar

Platitudes? No I was asking for advice from those with something to offer - not those who just like to troll....:mad: