Rent repayment order - moral dilemma

Squirejim

Howdy folks, I'd appreciate any advice on this. First of all this is nothing to do with me suffice to say I have lodgers in my property (I'm a live in landlord) and they have been fine. However, I find out they claimed the deposit from their previous landlord at their precious property as ll did not secure their deposit. This was returned in full. Apparently the property was not fit for purpose and long story short the LL did not have a license for a MHO....anyway, its been to tribunal and my lodgers are excited they will be getting 6 months rent back ! They are representing themselves although have a case officer from the council who was the one that ascertained the LL did not have a license. Now the issue I have is that they were receiving benefits either UC or housing benefot and I think they are of the view once the award is given they will be richer to the tune of 3.5k. Now the HB or UC was paid to the tenants who then paid the rent ro LL, so LL wouod be none the wiser where the funds came from.  In fact who would kbow how the rent was funded. I understand that if you receive UC or HB then the tenants are only entitled to that amount which exceeded the benefots received to meet the rent
My question is how would the tribunal know that the rentbwas funded partly or in full from benefits. Will this be sorted out afyer? Ie tenants receive the award and they should in theory pay this back to council....OR.the council should have made the claim themselves.  I can see an award beibg issued in tenants favour who believe it is all their funds. Its nothing to do with Mr but I'm curious to know what checking is done and at what stage to investigate the source of their income ro pay the rent....
Anyone with any thoughts gratefully received !
Cheers in advance

moneysavinghero

If its about a previous LL i would not worry about it.
Only thing i would worry about is that your lodger are clued up about their rights and not afraid to push for them, so just make sure that everything is in order.

Squirejim

Ok cheers I think I get what ure sayibg but I think theyvare of the view they will get back 6 months of rent from previous landlord and property when technically isbthatvwas paid for from UC or housibg benefit shouldn't that he paid to council. Its none of my business you are right....but may come as a surprise if aj award is issued but payable to the council think they will he surprised and disappointed.  Again its nothing to do with me so I should keep out of it ....

theartfullodger

Makes no difference if rent is paid from salary, running a drugs ring or benefits***  With RRO tenant is entitled to his rent back to him.  Pour encourager les autres.  

I'm sure squire you abide by the law.  I'm sure you are in favour of tenants abiding by the law,  RROs were brought in as an incentive for landlords to abide by the law. And yet, even with all the publicity and (rare for legislation) clarity of grounds for RRO, stupid, lazy or ignorant landlords find themselves with an own goal.  Sigh!

Artful: Landlord since 2000: (Actually, was also one some years earlier, pre 1988 Housing Act).

*** Clearly if paid for by running a drugs ring the tenants would and should have the book thrown at them prison & fines etc.

Squirejim

Ok but I thought if they paid using benefits then does the refund go back to council? After all the money was received by council to tenants to pay rent so technically its the councils money? 
Ps they'd be hopeless at running a drugs ring woukd smoke their own profits !!

Squirejim

Also just to add am a live in landlord and as its my house I make sure its in full working and safe order. To me I also don't care how they generate funds provided they pay rent on time which they do. My only concern for them was that they are thinking happy days 3.5k back in rent and when I read up on it, it wad if youbare in receipt of benefits then this is to be awarded to the council. I havent told tjem but wondering if theyvare in for a surprise. It wad only when I was googling that I found this out.....but if no one is the wiser and tbey get their rent back more power to them .....I just wasn't sure technically if the funds were provided by the council and tbere is a refund is it not the councils money ?

Grumpy_chap

Squirejim said:

Ok but I thought if they paid using benefits then does the refund go back to council? After all the money was received by council to tenants to pay rent so technically its the councils money? 
Ps they'd be hopeless at running a drugs ring woukd smoke their own profits !!

Just don't worry about it.  In fact, best to know nothing about your tenant's finances other than that they pay the rent due to you - everything else is their private business.

FaceHead

Agree with the consensus view that you should keep out of it - if anything this means your tenants are more likely to reliably pay you, now they have some into some extra cash. 

If you believe they should pay pay the housing benefit as their rent and therefore benefit entitlement has effectively be retrospectively reduced, you could report them through benefit fraud reporting. Would be a disaster if they found out it was you. 

Squirejim

Yep ..not something  I want to do. Am pleased for them but I didnt want them to build it up so much that when the hearibg says yes 8 agree with the RPO and we make the award payable to....the council......but you're right....pkus I've been helping then out in terms of offering a reference for the time they've been at my property....sounds like the last pkace was a nightmare....and they have offered a little somethibg when they get the award which I've declined.....just hoping they don't get a shock at the end as it might tip them over the edge ! But they've been respectfup of ky property and paid rent on time!