Universal Credit Tenant Rent

easty

My dad sounded so embarrassed as he told me he didn’t get me a birthday present a few days back, and that he wouldnt be able to buy anything for Christmas for the family either. I assured him it didn’t matter in the slightest, and we don’t need gifts from him, but it was horrible to hear him feel like that. 

When universal credit came into place here in December 2018 there was nae doubt in my mind it would adversely affect my dad. He rents out the 3 bedroom flat my family lived in, but as we grew up and moved out he didn’t need 3 bedrooms, so he rents a wee 1 bedroom place and rents out the 3 bed.
First month of universal credit, tenant paid half the amount. Over the next few months she paid random amounts when it suit her. My dad started proceedings to evict her, which takes bloody ages. When it’s finally underway, Covid hits and the case is delayed even longer.
It’s only just been found in his favour through the courts, but he cannae get in to tidy the place up because she gets 30 days extra free accommodation in case she wants to appeal. Absolute joke.
My dads now waiting on a remortgage to come through, he’s having to take equity out the flat, because from start to now, this has cost him over £10k. He’s absolutely skint. While the tenant sits in his flat celebrating Christmas with my dads rent money. 

Solicitor says they can try to get the money back through courts, but the tenant has no money. It’s all benefits. Plus, my dads saying he’s just got no more money to spend on solicitors now. 

Rant over.

AdrianC

Welcome to the inherent and utterly predictable risks of the business he chose to run.

When he gets possession, selling would be the sensible choice.

TBagpuss

Unfortunately voids, and poor tenants, ae risks which you take as a landlord, both with private tenants and those claiming benefits.

Perhaps rather than remortgaging your dad might consider selling the larger flat and investing the money elsewhere, so he doesn't have to deal with a tenant?

anselld

Landlord can apply to the Council to have the housing benefit element paid to them directly if the Tenant is in arrears.
https://www.gov.uk/government/publications/universal-credit-landlord-request-for-a-managed-payment-or-rent-arrears-deduction

[Deleted User]

easty said:

My dad sounded so embarrassed as he told me he didn’t get me a birthday present a few days back, and that he wouldnt be able to buy anything for Christmas for the family either. I assured him it didn’t matter in the slightest, and we don’t need gifts from him, but it was horrible to hear him feel like that. 

When universal credit came into place here in December 2018 there was nae doubt in my mind it would adversely affect my dad. He rents out the 3 bedroom flat my family lived in, but as we grew up and moved out he didn’t need 3 bedrooms, so he rents a wee 1 bedroom place and rents out the 3 bed.
First month of universal credit, tenant paid half the amount. Over the next few months she paid random amounts when it suit her. My dad started proceedings to evict her, which takes bloody ages. When it’s finally underway, Covid hits and the case is delayed even longer.
It’s only just been found in his favour through the courts, but he cannae get in to tidy the place up because she gets 30 days extra free accommodation in case she wants to appeal. Absolute joke.
My dads now waiting on a remortgage to come through, he’s having to take equity out the flat, because from start to now, this has cost him over £10k. He’s absolutely skint. While the tenant sits in his flat celebrating Christmas with my dads rent money. 

Solicitor says they can try to get the money back through courts, but the tenant has no money. It’s all benefits. Plus, my dads saying he’s just got no more money to spend on solicitors now. 

Rant over.

That’s the risk your dad took when he chose to become a landlord. He could have sold the 3-bedroom property and bought himself a 1-bedroom place to live in instead which would probably have been tax efficient too. I am guessing from some of the language you are using this is in Scotland so if you have an issue with  housing and tenancy laws in Scotland contact your MSP. 

easty

AdrianC said:

Welcome to the inherent and utterly predictable risks of the business he chose to run.

When he gets possession, selling would be the sensible choice.

I don’t think it was that predictable that the eviction process would be extended due to a worldwide pandemic, but I get your point.

He’ll not sell, this is his pension basically. My dad was a labourer for years, no pension from that, he got into other work in his mid 40s but his pension won’t be enough through that alone. 

easty

Lover_of_Lycra said:

easty said:

My dad sounded so embarrassed as he told me he didn’t get me a birthday present a few days back, and that he wouldnt be able to buy anything for Christmas for the family either. I assured him it didn’t matter in the slightest, and we don’t need gifts from him, but it was horrible to hear him feel like that. 

When universal credit came into place here in December 2018 there was nae doubt in my mind it would adversely affect my dad. He rents out the 3 bedroom flat my family lived in, but as we grew up and moved out he didn’t need 3 bedrooms, so he rents a wee 1 bedroom place and rents out the 3 bed.
First month of universal credit, tenant paid half the amount. Over the next few months she paid random amounts when it suit her. My dad started proceedings to evict her, which takes bloody ages. When it’s finally underway, Covid hits and the case is delayed even longer.
It’s only just been found in his favour through the courts, but he cannae get in to tidy the place up because she gets 30 days extra free accommodation in case she wants to appeal. Absolute joke.
My dads now waiting on a remortgage to come through, he’s having to take equity out the flat, because from start to now, this has cost him over £10k. He’s absolutely skint. While the tenant sits in his flat celebrating Christmas with my dads rent money. 

Solicitor says they can try to get the money back through courts, but the tenant has no money. It’s all benefits. Plus, my dads saying he’s just got no more money to spend on solicitors now. 

Rant over.

That’s the risk your dad took when he chose to become a landlord. He could have sold the 3-bedroom property and bought himself a 1-bedroom place to live in instead which would probably have been tax efficient too. I am guessing from some of the language you are using this is in Scotland so if you have an issue with  housing and tenancy laws in Scotland contact your MSP. 

Contact the MSP why exactly? She’s being evicted already. 

AdrianC

easty said:

AdrianC said:

Welcome to the inherent and utterly predictable risks of the business he chose to run.

When he gets possession, selling would be the sensible choice.

I don’t think it was that predictable that the eviction process would be extended due to a worldwide pandemic, but I get your point.

The notice period has extended, true. But that's it.

He’ll not sell, this is his pension basically.

Running a residential lettings business is not a pension. The value of the property is his pension. He can make better use of that money.

Right now, "his pension" is being eroded rapidly by running this business...

MovingForwards

If he has no pension as such, aside from state pension, then he is better off selling the big flat, buying a small flat to live in and potentially putting the difference into an actual pension for the tax uplift (pension board will explain in depth how it all works).

The other option is move back in, take in two lodgers under the rent a room scheme, use that money to fund his pension.

It is daft to be renting somewhere else when there's no need to be paying that money out each month and making a huge loss on the rental.

AdrianC

Indeed.

The "...and rent somewhere else" makes it even dafter - because he's receiving his income from his lettings business, paying tax on it, then using that post-tax money to pay somebody else's lettings business.

[Deleted User]

easty said:

Lover_of_Lycra said:

easty said:

My dad sounded so embarrassed as he told me he didn’t get me a birthday present a few days back, and that he wouldnt be able to buy anything for Christmas for the family either. I assured him it didn’t matter in the slightest, and we don’t need gifts from him, but it was horrible to hear him feel like that. 

When universal credit came into place here in December 2018 there was nae doubt in my mind it would adversely affect my dad. He rents out the 3 bedroom flat my family lived in, but as we grew up and moved out he didn’t need 3 bedrooms, so he rents a wee 1 bedroom place and rents out the 3 bed.
First month of universal credit, tenant paid half the amount. Over the next few months she paid random amounts when it suit her. My dad started proceedings to evict her, which takes bloody ages. When it’s finally underway, Covid hits and the case is delayed even longer.
It’s only just been found in his favour through the courts, but he cannae get in to tidy the place up because she gets 30 days extra free accommodation in case she wants to appeal. Absolute joke.
My dads now waiting on a remortgage to come through, he’s having to take equity out the flat, because from start to now, this has cost him over £10k. He’s absolutely skint. While the tenant sits in his flat celebrating Christmas with my dads rent money. 

Solicitor says they can try to get the money back through courts, but the tenant has no money. It’s all benefits. Plus, my dads saying he’s just got no more money to spend on solicitors now. 

Rant over.

That’s the risk your dad took when he chose to become a landlord. He could have sold the 3-bedroom property and bought himself a 1-bedroom place to live in instead which would probably have been tax efficient too. I am guessing from some of the language you are using this is in Scotland so if you have an issue with  housing and tenancy laws in Scotland contact your MSP. 

Contact the MSP why exactly? She’s being evicted already. 

You seem to have a problem with the housing and tenancy legislation in place so take it up with your MSP if you want things to change.