Tennancy Agreement error / Universal Credit

sleepyjones

Hi folks, sorry I wasn't sure if this should be in the housing or the benefits section
I few years ago I bought a house for a friend to rent, it was kinda informal but I wanted to make sure everything was "legal" so I got a Tennancy Agreement (just downloaded a thing online and filled in the blanks) and everythings been fine ever since.

The friend just called me last night and said he had applied for Universal Credit but there's a mistake in the tennancy agreement so I need to write and sign a letter to confirm everything.  Basically, because it was "informal" I didn't really pay too much attention / think too much about it but the rent we agreed at the start was £400 per month (just enough to cover the mortgage really, plus a bit extra for repairs if needed), but in the tennancy agreement I just put £100 per week (because the agreement I downloaded was based on a weekly amount).  So the discrepancy arises because if the rent was £100 per week, then it would actually be £430ish per month.  
He's been paying £400 per month, which is fine with me and that's what I've been declaring in my self assessment, but I'm not sure what to write in this letter?
Do I say the Tennancy Agreement is wrong?,  would there be any legal issues with that? ... or do I just write pretty much exactly what I'm writing here?
Thanks for any help.

theartfullodger

Only 2 n's in Tenancy: Attention to detail matters in landlord/tenant paperwork (as you've found out..)

Your problems are way way way bigger than just this.  As you've done it "informally" would I be correct in assuming you may not have served and/or don't have proof of service of documents relating EPC, GSC, Deposit, Inventory, photos etc etc etc ??  If so you probably are unable to serve a valid s21 & thus unable to definitely evict tenant that way.  Suggest you offer a new AST, lower rent.. (bear with me...) and sort out all the paperwork: And get educated as a landlord ! _ RLA or NLA.

Lower rent for a few months is so much cheaper than not being able to evict, and will encourage tenant to sign.

Got landlord insurance?  Declaring ALL the rent to HMRC taxman? Mortgage OK to rent out? Deeds give address other than property (if not big fraud risk..)

Yes, of course, I got things wrong when I started as a landlord: Expensive, long-drawn out, painful.... Resolved to learn: Been learning, doing course, still getting things rong.

notrouble

No such thing as an 'informal' tenancy. Just a landlord who does not know what he's doing. I dread to think how many laws and regulations you have broken........Read:

* New landlords (1):advice & information :see links in next post
* New landlords (2): Essential links for further information

So to clarify:

* he's been paying £400 pm?

* he wishes to claim £400 pm from UC?

* but the TA states £100 pw?

Options are

a) he claims £100 pw (or £430 pm) instead, but i) this would be fraud and ii) if he's alredy submitted a £400 pm claim DWP are likely to query the change!

b) what exactly have DWP said to him? You say "I need to write and sign a letter to confirm everything. " Is that comig from him, or from them? What do DWP say they want? If they understand what has happened and have requested a leter toconfirm, fine. Write a brief letter confirming the rent is actually £400 pm and has been since the tenancy commenced on xx date. Alternative is to provide a new tenancy agreement (a proper one that you think about before just downloading it without reading!), back-dated. Though that too might raise eyebrows at DWP if they are already in possession of the original one, so an accompanying explanatory letter might help.

notrouble

theartfullodger said:

...

....... Resolved to learn: Been learning, doing course, still getting things rong.

Rong  (also Róng)

1A member of a Sikkimese people: = "Lepcha".

2The Tibeto-Burman language of this people; = "Lepcha".

..

pmlindyloo

You can amend the tenancy agreement to say £400 per calendar month with both you and the tenant signing the change or you can create a new tenancy agreement with the correct rent/rent period and both sign it.
In view of the above comments you may wish to consider a new tenancy agreement to check that you have all the correct/required information in it.
For the purposes of your tenant claiming Universal Credit then you can write a letter saying that the tenancy agreement was incorrect and that the correct rent is £400 per calendar month and also confirming that the tenant has paid £400 per month as verbally agreed, this has been accepted and there are no rent arrears. You can also say the tenancy agreement has been amended to reflect the true rent period, signed by both parties and you could enclose a copy.
The DWP will have seen the tenancy agreement and also your tenant's bank statements so they will know there is a discrepancy so you must address this.

sleepyjones

w in wrong  
Got landlord Insurance, it's a buy-to-let mortgage.  It's all declared via self-assessment Got a gas safe certificate,  Smoke alarms / detectors were already installed ... I don't have a certificate to prove these are adequate though? 
It was a new house (newly purchased, not new build), so no inventory, everything in it is his.  
The guys been my mate since I was about 5, 37 years ago ... so I don't have any worries about eviction or damage or deposits.   I know this is probably a bit naive but I trust the guy, he's like family.  If it was anyone else or I was renting it out on the open market the rent would probably be double what it currently is.

Thanks @theartfullodger

notrouble said:

So to clarify:

* he's been paying £400 pm?

* he wishes to claim £400 pm from UC?

* but the TA states £100 pw?

@notrouble ...  Correct.  I haven't heard anything from DWP, this is just what he has told me.  I assume his appointment was only yesterday so maybe I'll get something in the mail from DWP in the next couple of days.

@pmlindyloo thanks, I think that's what I'll do.  I'll get a new agreement and write a covering letter to confirm/explain the change / mistake.

notrouble

sleepyjones said:

Got landlord Insurance, it's a buy-to-let mortgage.  It's all declared via self-assessment Got a gas safe certificate,  Smoke alarms / detectors were already installed ... I don't have a certificate to prove these are adequate though?

* government leaflet "how to rent"
* EPC
* From 1/2/16 landlords must check tenants' immigration status.

* deposit protection and PI issued (if deposit taken)

* electrical certificate

????

It was a new house (newly purchased, not new build), so no inventory, everything in it is his. 

Except the paintwork? Carpets? Any white goods?

sleepyjones

He painted a lot of it himself to match his taste after he moved in and he bought a new fridge freezer / washing machine  (they weren't in the house when I purchased).  He's got 2 dogs so I'm not concerned about carpets (he actually did put laminate down in the living room / kitchen / hallway), so just upstairs carpets which, again, I don't have any concerns about.
I know he's fine to be in the UK, was born in the same hospital 2 days after me, but I haven't had it checked.  No deposit taken and not had an EPC.

I know you're trying to help and I do appreciate it but this isn't really relevant to the original question.