AST Mandatory for Benefits???

*~Zephyr~*

I have one property that is still currently managed by an agent. I spoke with them today about whether my tenant wants to resign for a further 12 mths AST or if she prefers to roll onto a periodic tenancy. I don't care much either way, it['s up to her.

Anyway, the Agent said that new rules and regulations being brought in to protect the tenant and prevent LLs from booting out tenants willy-nilly are resulting in Councils insisting on AST's before they will pay out Housing Benefit and such like. And that insisting on a periodic tenancy will result in my tenant losing her HB.

REALLY??? I know Letting Agents are generally scum, but this one has generally been OK up until now. What on earth are they playing at?? There's no truth in this, is there?

Gigervamp

As a landlord, it is your obligation to keep up to date with the legislation. You shouldn't be relying on the managing agents.

I suggest you check out the government website for the relevant information.

thesaint

No, there is no such rule.

Individual councils may make up their own rules though. Obviously their rules can be bypassed., but HB may be suspended for a period of time.

I would ask for a copy of these new rules, or a link so that you can read them yourself.

*~Zephyr~*

thesaint wrote: »

No, there is no such rule.

Individual councils may make up their own rules though. Obviously their rules can be bypassed., but HB may be suspended for a period of time.

I would ask for a copy of these new rules, or a link so that you can read them yourself.

I will ask for a link.

I've been a LL for a long time. I know what the new regulations are (thanks for the tone of condescension Gingervamp), and nothing in there suggests benefits will be taken if there's no AST, hence I asked if anyone had heard of this before.

I think I need to speak to Cardiff Council direct and ask them if there's any truth in this.

theartfullodger

Expecting a letting agent to give you sound & correct advice on how council housing benefit departments work may lead to disappointment & financial losses.

The advice

As a landlord, it is your obligation to keep up to date with the legislation. You shouldn't be relying on the managing agents.

I suggest you check out the government website for the relevant information.

is pretty much correct (I too am a landlord: Registered & accredited for what it's worth.. - not a lot...). However each council operates under their own local rules, albeit there are England-wide rules that are supposed to operate (but get ignored by local self-important council officers). I am aware of many councils hoping & expecting a written recent AST but, as you as a "long time LL" will know a tenancy of less than 3 years does not even need to be in writing. Many council HB depts will (eventually) settle for a letter from landlord. Any claimant who's application for HB/LHA is refused should appeal - it ain't hard.

The HB/LHA departments are trying to cut down on fraud (usually LL & T in collusion I hear) and merely producing a shiny new AST is no guarantee of what rent is actually being paid, who the actual occupants are or indeed if there are not other fiddles going on. Nor indeed get round the fraud involving council officers together with LL&T (yes, happens also): But it means the head of the HB dept can point to his paperwork checks and explain what a great job he does.

I would check the council website 1st eg
http://www.slough.gov.uk/benefits-and-money/housing-benefit.aspx
&
http://www.slough.gov.uk/benefits-and-money/how-to-claim-housing-benefit.aspx

Proof of Rent: private tenants and Housing Association tenants only, please provide a current tenancy agreement or a letter from your landlord/agent or a fully completed and recently updated rent book/card. The document needs to confirm your rent and any service charges you pay, the date you moved in, and whether you are a joint tenant. It also needs to be signed by you and your landlord.

Of course it is the tenant who is responsible for getting the rent paid, regardless of getting HB or not.

As an experienced landlord you will also know tenant does not need to re-sign, tenancy automatically becomes periodic & you cannot stop that (you and agent are legally unable to prevent periodic starting): I prefer that anyway (more incentive for tenant to stick to agreement, easier for me to evict). And means both landlord and tenant don't have to pay renewal fees

When did you last do a course relating to landlord law or processes??

Gigervamp

Also, don't forget that Wales brought in new rules regarding landlord registration last year.

*~Zephyr~*

theartfullodger wrote: »

Of course it is the tenant who is responsible for getting the rent paid, regardless of getting HB or not.

As an experienced landlord you will also know tenant does not need to re-sign, tenancy automatically becomes periodic & you cannot stop that (you and agent are legally unable to prevent periodic starting): I prefer that anyway (more incentive for tenant to stick to agreement, easier for me to evict). And means both landlord and tenant don't have to pay renewal fees

Yes of course I know that. If you read my post properly you'd see that I am perfectly happy with a periodic tenancy, and it appears my tenant is too. The problem is that my agent is clearly getting antsy about losing their signing fee and are trying to bully my tenant into signing an AST by putting the frighteners on her about losing her HB.

I don't need lectures over my LL responsibilities, I need to know if there is precedent for Councils to restrict HB to those who can produce an AST.

There's nothing on Cardiff' CC's website to suggest so, but anecdotal evidence of this happening in other councils might be useful.

theartfullodger wrote: »

When did you last do a course relating to landlord law or processes??

Within the past 3 months. When did you last do one?

theartfullodger

*~Zephyr~* wrote: »

.....I don't need lectures over my LL responsibilities, I need to know if there is precedent for Councils to restrict HB to those who can produce an AST.

Not afaik: Delighted your don't need lectures: I'm confused, if that is the case why are you asking these questions??

As suggested already to you, the info is on gov.uk: As you are up-2-date and appear expert you will know this already, and be familiar with all of amongst other gov.uk sources...
https://www.gov.uk/government/collections/housing-benefit-claims-processing-and-good-practice-for-local-authority-staff
(large brandy, paracetamol & several hours time needed when I last looked...)

...Within the past 3 months. When did you last do one?

29th November, UC: learned it is not universal and by no means a credit to IDS.

In my limited (clearly, not up to your standard..) experience one of the best sources of help in this area is..
http://www.landlordzone.co.uk/forums/forumdisplay.php?18-Housing-Benefit-Questions-(HB-LHA-DSS)
- there is a particular poster who is outstanding.

Cheers!

G_M

A load of rubbish.

The agent simply wants to charge both you, and the tenant, a fee for drawing up a new tenancy agreement.

Speak to the tenants yourself. If they are happy to continue on a periodic tenancy, then write to 'your' agent, instructing them not to draw up a new agreement but to allow the tenancy to continue on a periodic basis. Send a copy of your letter to the tenants.

Might be worth checking if the tenants have been asked to pay for 're-signing' (resigning??). I doubt they want to.

* Letting agents: how should a landlord select or sack?

*~Zephyr~*

G_M wrote: »

A load of rubbish.

The agent simply wants to charge both you, and the tenant, a fee for drawing up a new tenancy agreement.

That's what I suspected. They used to be a decent agent, small, local and family run and they used to care about their tenants. I think they'd got too big to be friendly now and are just trying to screw money out of tenants regardless of their ability to pay. If it weren't for the new Landlord Licencing regulations here in Wales I would sack them and manage the property myself. I'm just really disappointed in how they have changed their attitude towards tenants.

I've just had confirmation from Cardiff CC that the award for HB does not depend on whether there is an AST or a periodic tenancy. But the agent still insists that they are having regular battles with the Council over this issue and tenants are falling into arrears because HB payments are being held back until new AST's are produced. Knowing how contrary Cardiff CC can be, I'm inclined the think that the while agent might be over-egging it, they may not be giving me outright lies.

thesaint

*~Zephyr~* wrote: »

But the agent still insists that they are having regular battles with the Council over this issue and tenants are falling into arrears because HB payments are being held back until new AST's are produced.

Having battles, is not what was described in the opening post of this thread.

You would be advised to recap your first, and subsequent conversation to them in an e-mail, and ask for them to respond within seven days.