Tips for accepting rent allowance?

curadh

Hi all Im letting a house to some people and one of them wants to pay their part of the rent with rent allowance. Just wondering what I should watch out for, obviously I don't want to be getting the rent in dribs and drabs every month...anyone been thru this?

the_syco

Tell them that the rent allowance goes direct into your bank account, or they don't move in. Also, get references, and ask google the numbers they give you, to ensure that you're ringing a landlord, and not just their mate Johno. Ask them unrelated question first, and see if they answer. If they're an actual landlord, they'll ask what are you on about.

Kipperhell

Also note new standards are coming in on property paid for by the state. I haven't looked at all the info yet but apparently insulation on external walls is one of the things that will be required. So you may end up having additional costs. I know it will effect a lot of the property already being paid for by the state.
Make sure the person in question is aware that they are responsible for the rent money so if any payment doesn't come through she is responsible to pay the money. The main reason is to make sure she doesn't let anything slip such as the returning of forms.

The_Conductor

I'd echo what Syco has said.
Its now optional (in most cases) as to whether the rent allowance goes directly to the tenant- for transfer to the landlord, or is lodged to the landlord's account. Insist on getting it lodged directly.

bertie1

You need to make it clear to them that their contract is with you & not the Rent allowance gang. You will find that you have forms to fill out for them every 3/4 months , their rent/case is constantly being reviewed & while that is going on you will not be paid . There can be lapses in the payment because the Rent Allowance gang are short staffed and last year alone no rent allowance was paid for a tenant I have from June - September , it eventually came in September back dated ( Reason being somebody was out sick) . You need to be able to carry the cost when that messing starts. On top of that what ever the rent allowance is there is a shortfall weekly & the tenant needs to pay it , don't let it run . They will never catch up.

Bob Z

Kipperhell wrote: »

Also note new standards are coming in on property paid for by the state. I haven't looked at all the info yet but apparently insulation on external walls is one of the things that will be required. So you may end up having additional costs. I know it will effect a lot of the property already being paid for by the state.
Make sure the person in question is aware that they are responsible for the rent money so if any payment doesn't come through she is responsible to pay the money. The main reason is to make sure she doesn't let anything slip such as the returning of forms.

Have you any links for this?

Bob Z

bertie1 wrote: »

There can be lapses in the payment because the Rent Allowance gang are short staffed and last year alone no rent allowance was paid for a tenant I have from June - September , it eventually came in September back dated ( Reason being somebody was out sick) .

If this does happen inform the Tenant right away. I happened to a friend of mine and the Landlor never told her for ages that her rent allowance had been stopped

The_Conductor

Bob Z wrote: »

If this does happen inform the Tenant right away. I happened to a friend of mine and the Landlor never told her for ages that her rent allowance had been stopped

Why is it the landlords duty to tell her?
Rent allowance is reviewed in many cases every 2-3 months. It is not the duty of the landlord to constantly liaise with DSFA regarding this.

curadh

Wow, thanks for the replies everyone. What about if I was to make it clear from the start that I will sign the rent allowance forms but the rent must be paid in full as a unit regardless of the circumstances of individual tenants, and the potential problems or delays they may have in receiving the monies.
I was told before that if I sign the form stating that the house is being rented for (the figure he needs to pay his way) then if they stop paying rent I could be held for that amount only as the rent for the house if it went to the law.

The_Conductor

curadh wrote: »

Wow, thanks for the replies everyone. What about if I was to make it clear from the start that I will sign the rent allowance forms but the rent must be paid in full as a unit regardless of the circumstances of individual tenants, and the potential problems or delays they may have in receiving the monies.
I was told before that if I sign the form stating that the house is being rented for (the figure he needs to pay his way) then if they stop paying rent I could be held for that amount only as the rent for the house if it went to the law.

Rent allowance is not paid on the same date every month- and is constantly under review. You'd most probably be in arrears, despite the best intention of the tenant, before long- and if they were reaccessed downwards (as is highly likely in December), you'd be out of pocket.

You can specify whatever you like in a lease- but at the end of the day- if the money isn't there, it quite simply isn't there.

You need to get the rent allowance paid into your account= and the balance paid to you by the tenant on a specified date (e.g. the first of the Month- or a social welfare day).

You can have the most wonderful contract in the world drawn up- but if the person who signs it doesn't have the means to honour their obligations- you're up the creek one way or the other.

foxy06

smccarrick wrote: »

Why is it the landlords duty to tell her?
Rent allowance is reviewed in many cases every 2-3 months. It is not the duty of the landlord to constantly liaise with DSFA regarding this.

But if the landlord is getting the cheque directly then the tenant wouldn't know if it had been stopped and so it only takes a phonecall to the tenant to say your cheque hasn't arrived...sort it out yourself please.

The_Conductor

foxy06 wrote: »

But if the landlord is getting the cheque directly then the tenant wouldn't know if it had been stopped and so it only takes a phonecall to the tenant to say your cheque hasn't arrived...sort it out yourself please.

The tenant will be informed of each payment (normally on the same day) as the cheque is dispatched. It would be extra work on a landlord's part to keep track of the lodgement to his account from the DSFA, particularly given the varying nature of the payment..... I don't know about you- but my current account statement regularly runs to 8-10 pages- I'd really rather go hunting for this every month......

bob123456

There's 2 types of rent allowance tenant.

1. Has been working for the past number of years. Has been laid off and will try and get a job again.

2. Welfareites - probably hasn't been working during the boom years and God only knows when they will work again.


If it's type 1, then accept them. Make sure you get previous work and landlord references off them. Also get a good deposit. If they have been working they should have some money.

Avoid the welfareites at all costs, even if you have to reduce the rent to get a good tenant.

foxy06

smccarrick wrote: »

The tenant will be informed of each payment (normally on the same day) as the cheque is dispatched. It would be extra work on a landlord's part to keep track of the lodgement to his account from the DSFA, particularly given the varying nature of the payment..... I don't know about you- but my current account statement regularly runs to 8-10 pages- I'd really rather go hunting for this every month......

Reason I ask is that I work in a landlords office and when EHB cheques come in and are short or don't arrive at all we inform the tenants and they have to sort it out. I was under the impression that they wouldn't have known otherwise.

goldie181

bertie1 wrote: »

You need to make it clear to them that their contract is with you & not the Rent allowance gang. You will find that you have forms to fill out for them every 3/4 months , their rent/case is constantly being reviewed & while that is going on you will not be paid . There can be lapses in the payment because the Rent Allowance gang are short staffed and last year alone no rent allowance was paid for a tenant I have from June - September , it eventually came in September back dated ( Reason being somebody was out sick) . You need to be able to carry the cost when that messing starts. On top of that what ever the rent allowance is there is a shortfall weekly & the tenant needs to pay it , don't let it run . They will never catch up.

that was a lie u were filled with cause that never happens no one person looks after one accout in is a team effort and its atomactically paid for three months the re-check and there is a team to look after it so even if one person is out sick it will still be looked after by there team!!

DO'Carlo/Wex

Without meaning to go off-topic, I was an excelent tenant of a long-standing with my landlord until I was laid-off.
I'd plenty of stamps paid (since end-of last decade). Was let-go in Febuary.
Landlord wouldn't accept r/a. Said he had (his') reasons & that he didn't have to tell me or wouldn't let me know why he was refusing me after being his' tenant for ages.
Why would or could a landlord do this? Is it a personal choice?
I'm finiding it awkward since to try & get accomodation as some landlords don't seem to differentiate between welfare-ites & those of us who have a few bob put away for a rainy-day & want independence back & want to work.
The issue with some is they don't want tenants in the house during the day thereby driving up the cost of utilities which is understandable given other tenants may have to share bills & it's unfair on them if they're out working but have to cough-up to cover day-time use of utilities.
But is there other issues like taxation or financial ones? I've always paid my rent to all my landlords (4/5 & counting) in cash & never an issue. I know if I was a landlord I'd rather the rent in cash as no paper-trail for the revenue to follow or query your' inflated income. Bit like living off the proceeds of crime but show me a landlord/lady who wouldn't want their' rent into the hand. I would.

mikemac

Some landlords don't want to rent to people on welfare. They might be prejudiced against it, "sure why aren't they working?"
But this wouldn't apply so much anymore, hundreds of thousands have become unemployed in the last few years

DO'Carlo/Wex wrote: »

But is there other issues like taxation or financial ones? I've always paid my rent to all my landlords (4/5 & counting) in cash & never an issue. I know if I was a landlord I'd rather the rent in cash as no paper-trail for the revenue to follow or query your' inflated income. Bit like living off the proceeds of crime but show me a landlord/lady who wouldn't want their' rent into the hand. I would.

So you just answered your own question. The landlord is getting rent in cash.
Maybe they are declaring it but only they know and I realy doubt it.

You will probably be leaving soon so ask the landlord for their PPS number. You need it for Rent Relief which is different to the Rent allowance you are trying to claim
If he won't give it just use his name and address and inform him you'll be going to the revenue to claim what is yours!

Seriously, you're here telling us you'd cheat on taxes if you were a landlord but at the same time you want help to claim to rent allowance. Want it both ways :rolleyes: