Existing tenant is applying for Housing Benefit...

Old_No.7

Hi, I wonder if anyone has any advice, as I'm a bit worried about one of my tenants claiming Housing Benefit. What do I need to consider, and can I refuse to let her live there on benefits if needed? I rent out 3 rooms in a flat to 3 people separately, they share kitchen and bathroom etc.

I read in a post that insurance goes up for tenants on benefits for instance, and there might be other things that affect me, but mainly I'm worried for the other tenants: the situation is that this girl has been a good tenant to us (pays on time and helpful when things go wrong in the house) but the other tenants cannot stand her, and have complained on numerous occassions. She's made one of them cry, has had others (normally reasonable people) asking me to chuck her out etc etc. In other words: she's a bit of a bully. Normally I keep out of this, and so far I have, but as I don't know the first thing about HB, will this give her more right to stay in the flat? I can just see her behaviour getting worse if she feels more secure than the others, and I might loose the other tenants.

Sorry, I hope this makes sense, t's a a bit late and have tried to find the information online, but can't get my head round it: I don't want to throw her out when she needs a stable place more than anything, but i also don't want it to create problems for the other tenants (or myself for that matter, haha)

Oh, the contract is a rolling one, so no tie-in on either side, and I have a Consent to let from the mortgage provider, rather than a BLT mortgage, if that makes a difference...

Any help appreciated!

PasturesNew

I've no idea. But as you say it's mean to think of chucking her out when she needs a place. However, once she's off HB and back in work, you might like to sort it out then.

It will take her awhile to get the HB payments through in the first instance - and you'd have to give her 2 months' notice. So it's not worthwhile rocking the boat right now I'd say.

chriz1000

I don’t know if she gets any more rights as a tenant, but what I do know is if for some reason they have overestimated her benefit allowance they will come to you rather than her for reimbursement of the overpayments. If her circumstances change for example and she carries on claiming, when they find out it’s you who will be out of pocket.
I believe there may be a way around it, if the benefits are paid directly to her and then she pays you rent, she becomes responsible for any overpayments made. However the government won’t always allow this, its all down to the circumstances.

clutton_2

i would say just the opposite. if she is going onto benefit and she is already a pain in the bum, this is not likely to improve.

HB is paid 4 weekly in arrears. She will almost certainly not get the full amount of her rent and she will have to pay you a top up. If she does not sign the HB application form (so that you get the rent directly from HB,) the money will go to her and she may not pass it on to you. HB will take at least 4 weeks possibly up to 8 weeks to pay up. IF she gets one piece of paper incorrectly filled in, you lose another week in the system. HB staff/systems are notorious for losing paperwork and then blaming tenants.

You have to take a pragmatic view here - if you believe she is going to get more and more difficult as a tenant, and her behaviour risks you losing your other two good tenants, then now is a good opportunity to get rid of her. If the HB does not come thru soon, she will be in arrears, and you can apply for a Section 8 eviction, and/or a section 21.

I know some tenants on here will see this as very harsh and have a go at me because of this response.

My reasons are - folks who have been on HB for some time know how to budget their money, they know how to "work the system", they know that they cannot live on benefits alone, and they get a small cash job to make ends meet - they have learned to survive on starvation income.

For a tenant such as this who has been working - she will have no idea how to sort out her HB (and neither does the landlord here) and it could well be months 3-4 maybe before the landlord gets any HB/rent.

If this tenant is already troublesome, you risk losing your other two tenants, and then where will you be ?

Re insurance - yes it will go up if you inform your insurers.

If she is out of work she will be in the flat most of the day - having no money to go anywhere- and then there will be rows as to who is spending all the electric money .....

Sorry, but mixing HB and working tenants in one house is a recipe for disaster.

PasturesNew

I would defer to clutton's superior knowledge. What I posted is my opinion. clutton seems knowledgeable in these matters.

Fran

You say she is a good tenant and helpful to you and has always paid on time. Could it be that the other two tenants are not as reasonable as you think and in fact she is not the bully they have suggested; maybe the arguments are about washing up/bills or something? (Just thinking of another angle, but you know the people involved.) Are the other tenants as reliable in paying/as helpful when things go wrong?

Claiming Housing Benefit does not necessarily mean people are out of work. If she has paid so far then is there any reason to think she wouldn't pay whether on HB or not? She would have the same tenant rights as the others, HB is only the method she will pay. There is no reason that someone paying through HB is any less honest/reliable than someone who is not, dishonest people exist in all walks of life.

I don't know about insurance and benefits, you would have to check with your insurers on that one to see what is in their policy.

Running_Horse

Great idea. Add homelessness to her unemployment problem. Oh to be a landlord.

Jonbvn

Running_Horse wrote: »

Great idea. Add homelessness to her unemployment problem. Oh to be a landlord.

Sounds harsh, but welcome to the real world.

MissMoneypenny

I think the same as clutton.

If this tenant is not getting on with your other working tenants and is now unable to support herself, it can only lead to more rows.

From what has been said, it sounds like it will take a while to get the HB through, so why doesn't she just get another job in that time? Sounds like she could be planning on being on HB for the long haul.

HugoSP

clutton wrote: »

i would say just the opposite. if she is going onto benefit and she is already a pain in the bum, this is not likely to improve.

I've had 2 tenants who've gone onto housing benefit after they've moved in and, apart from my needing to fill in forms for them, I never noticed the difference. Rent is paid on time and they still look after the properties etc.

HB is paid 4 weekly in arrears. She will almost certainly not get the full amount of her rent and she will have to pay you a top up. If she does not sign the HB application form (so that you get the rent directly from HB,) the money will go to her and she may not pass it on to you. HB will take at least 4 weeks possibly up to 8 weeks to pay up. IF she gets one piece of paper incorrectly filled in, you lose another week in the system. HB staff/systems are notorious for losing paperwork and then blaming tenants.

The above is true. However she may be in a position to pay up front. Depending on how she became unemployed (if that's the reason she's going onto housing benefit) she may have received some kind of severence package from her employer. This will help pay the rent when it's due and she'll then either specify the rent to be paid directly to the landlord or she can bank the money herself and pay the LL out of her own pocket.

You have to take a pragmatic view here - if you believe she is going to get more and more difficult as a tenant, and her behaviour risks you losing your other two good tenants, then now is a good opportunity to get rid of her. If the HB does not come thru soon, she will be in arrears, and you can apply for a Section 8 eviction, and/or a section 21.

It all depends on how long she's been in the place. If she is on an AST she has a minimum term of 6 months. Having said that we are probably jumping the gun here. Why are you assuming that a tenant who pays the rent on time and is helpful with regards to the property is suddenly going to turn into the tenant from hell when she starts claiming housing benefit. The fact that she doesn't get on with some of the other tenants becomes an issue for the landlord when tenants leave and rent voids arise.

I think it's too early to call at the moment. I say it is just as possible that she's lost a job that she hated and without meaning to, she's been taking it out on her housemates. She will replace one set of problems with another. If she's bright she'll realise that she needs the support of those around her and she may also be less stressed, so losing her job could be the best thing that ever happened to her - speaking from personal experience:D .

I know some tenants on here will see this as very harsh and have a go at me because of this response.

I wouldn't see it as harsh, but with respect, probably a little narrow minded as you've just assumed this girl is a born trouble maker. She may be but TBH I don't think we can take that as a given. Even the OP who is their Landlord isn't in the house with them, so whilst he may get complaints about her he can't be absolutely sure of the dynamics, plus as I have said above, her change in circumstances my have a positive effect in the house.

It is quite feasable that the other two tenants are in a clique and she is on the outside and feels very isolated as a result.

My reasons are - folks who have been on HB for some time know how to budget their money, they know how to "work the system", they know that they cannot live on benefits alone, and they get a small cash job to make ends meet - they have learned to survive on starvation income.

Given the choice I would prefer to have a tenant who may have to go onto housing benefit as a temporary measure than one who lives on housing benefit as a way of life. The only tenant we have like that is on DLA, so he really can't work - yet he tries to go for jobs within his scope. They are few and far between.

For a tenant such as this who has been working - she will have no idea how to sort out her HB (and neither does the landlord here) and it could well be months 3-4 maybe before the landlord gets any HB/rent.

My tenants who have been working sorted out their housing benefit without any problems. I assume they had either had to apply before (quite likely with one couple) or they sought giudence. It sounds like this girl's not stupid so she should be able to navigate this path without too much difficulty.

In my area HB usually comes through within a few weeks.

If this tenant is already troublesome, you risk losing your other two tenants, and then where will you be ?

The risk of losing the other two tenants is either there or it isn't. Her going onto housing benefit will not change that. Having said that a quiet word to the effect that it will make it more difficult for the landlord to be accomodating with rent interruptions if he keeps getting complaints about her, may go a long way.

Re insurance - yes it will go up if you inform your insurers.

Not necessarily. My insurers insist of my seeking references prior to signing them up to an AST.

If she is out of work she will be in the flat most of the day - having no money to go anywhere- and then there will be rows as to who is spending all the electric money .....

You really have got it in for her haven't you? :rolleyes:

Sorry, but mixing HB and working tenants in one house is a recipe for disaster.

For 7 years I owned a house in the midlands and took up to 3 lodgers at any one time. When my GF moved in there were 5 of us. We were a mixture of students, working individuals, unemployed, taking cover from ex girlfrends etc etc etc. We had around 15 lodgers in the time we were there. We shared the bills on an agreed basis and there was little scope for arguements. Obviously if the home alone tenant insists on having the gas fire on all day in the winter then there could be scope for problems, but they need to sit down and discuss it like adults.

silvercar

Play it by ear.

Make sure the tenant understands that her HB claim is a matter for her; she is srill required to pay you the full rent on time.