Rent Allowance

v10

Hi, I'm just looking for landlords opinions on exepting rent allowance for your property. I recently put a property up for let and have had a couple of enquirys asking if I'd accept Rent Allowance ? Whats the problems if any ? Opinions please ? Thanks.

Dymo

v10 wrote: »

Whats the problems if any ? Opinions please ? Thanks.

Problem is you won't get your rent, the money is paid directly into their account and you could end up begging for it. It all depends on the renter, if there respectable and trustworthy and aren't using the social welfare system their job by all means it could be worthwhile. But if its like the calls I get it's usually the scum who have wrecked their old house and feel now like moving, they don't want to give references or deposits and its their entitlement to live where ever they want and move as often as they want.

• Find out why there leaving their old property,
• Get references and check them out.
• Go with your gut feeling, no matter what they tell you how good a tenant they will be and how much they'll do up your house for you, if they seem suspect investigate it more.

If they decide they don't want to pay you rent it's a long road to remove them and the health board/housing authority will offer no help.

Penny Lane

Second everything Dymo said but would add that you can request that the social pays direct to your account so that's a safety net.

v10

OK thanks for the quick replys. So am I right in thinking that most people receiving rent allowance will be unemployed ?

Shelli2

Majority yes, but some parents in reciept of One parent family payment and/or family income supplement work part-time and are also eligable for rent allowance.

PeteEd

Dymo wrote: »

Problem is you won't get your rent, the money is paid directly into their account and you could end up begging for it. It all depends on the renter, if there respectable and trustworthy and aren't using the social welfare system their job by all means it could be worthwhile. But if its like the calls I get it's usually the scum who have wrecked their old house and feel now like moving, they don't want to give references or deposits and its their entitlement to live where ever they want and move as often as they want.

• Find out why there leaving their old property,
• Get references and check them out.
• Go with your gut feeling, no matter what they tell you how good a tenant they will be and how much they'll do up your house for you, if they seem suspect investigate it more.

If they decide they don't want to pay you rent it's a long road to remove them and the health board/housing authority will offer no help.

Get your big tar brush out there!!

Someone on rent allowance is no different to any other tenant, take a bit of time check them and their references out.

After redundancy i have had to avail of the rent allowance scheme, I have always paid my rent on time and have not wrecked the gaff.

iluvcake

"the money is paid directly into their account and you could end up begging for it."

Hi there,

Just wanted to let you know that rent allowance is not paid directly into the person's account. As I am receiving it myself, I have to collect and sign for it (with I.D. and my PPS Card) at my local Post Office. My landlord doesn't have to "beg" for his rent every month as I pay it on time, always. He knew this before I moved in. Also, I am unemployed at the moment but working on a Fás Work Placement Programme, which means I don't get paid but I do get my Social Welfare and Rent Allowance entitlements. Not all people receiving rent allowance are bad.

v10

PeteEd wrote: »

Someone on rent allowance is no different to any other tenant, take a bit of time check them and their references out.

That was my feeling on it but have noticed a lot of negative posts around. Also I got a bit suspect when after advertising the property I had 4 enquires within 24 hours all querying if I'd accept rent allowance !

muffinn

Shelli2 wrote: »

Majority yes, but some parents in reciept of One parent family payment and/or family income supplement work part-time and are also eligable for rent allowance.

Also some are going back to college under the BTEA scheme, which enables them to claim rent allowance. Especially now, when the academic year is about to start.

shoegirl

Part of the problem is that rent allowance is only given to the tenant in arrears rather than advance and they have to cough up the deposit themselves mostly.

Some are ok, but in my long experience of renting some can be risky. Talk to them and try to figure out why they are moving. Some are fine. I guess a lot of people laid off would have to move if their rent is too high.

Plebs

PeteEd wrote: »

Get your big tar brush out there!!

Someone on rent allowance is no different to any other tenant, take a bit of time check them and their references out.

After redundancy i have had to avail of the rent allowance scheme, I have always paid my rent on time and have not wrecked the gaff.

I have no doubt that there are many upstanding individuals in receipt of rent allowance.

However, when you're in business, you've to aim at a target market. That means you classify individuals into a group. When an unemployed individual presents himself as a prospective tenant, you have to make a decision as to his reliability based on imperfect information (i.e. you don't know this person). You can do all the checking in the world, but they can still turn out to be a dud tenant.

If you take on a high risk tenant, you should be demanding higher rent. Banks do it all the time: there's a reason low income earners use MBNA and pay through the teeth in interest.

Personally, I'd steer well clear of unemployed persons, heavy drinkers, drug users, people with young children, sick people and people over 40. You won't be able to get them out when they stop paying the rent. I'd never put someone who has just been diagnosed with cancer, or a manic depressive who has just had a drug overdose, out on the street, but I'd prefer not to lose €1,000 a month due to someone else's misfortune.

One of my pet hates is when someone you don't know makes their problem your problem.

Axwell

Im sure a number of the negative posts in this thread are from people who have never been a landlord or dealt with anyone receiving rent allowance or otherwise and are just posting sterotypical comments without any knowledge of any of it to be honest so I wouldnt just jump to conclusions.

Rent allowance is given to people under many different circumstances and just tarnishing people with the same brush like the previous poster is ridiculous. Sure there are some people who are unemployed abusing the system but not everyone is. Some are on BTEA going back to college and as part of it receive their rent allowance, some have been recently made unemployed and have worked for years. Rent allowance is preferred by a lot of landlords as its guaranteed rent contrary to what others have said. There are no gaurantees that an employed person wont have their hours cut or take a py cut these days and might not be able to come up with the rent some wks/months, same applies if you rent to students and their grant doesnt come through on time. At least with someone on rent allowance the money is given to them every month and once you have filled in the necessary paperwork and chatted with them and agreed to let the property their shouldnt be any problems.

I recently moved and while I dont receive rent allowance every letting agent that I had a viewing with enquired was I paying part of the rent with rent allowance. One of them said straight out that it was nearly a plus more than anything in the current climate as the landlord was gauranteed his rent at least.

You simply treat it like any other letting, you get references from their previous landlord and check it out, ask why they are moving and if you wanted you could get the number of their community welfare officer who would be over their rent allowance and check with them if they had any issues before.

doctor evil

Plebs wrote: »

Personally, I'd steer well clear of unemployed persons, heavy drinkers, drug users, people with young children, sick people and people over 40. You won't be able to get them out when they stop paying the rent. I'd never put someone who has just been diagnosed with cancer, or a manic depressive who has just had a drug overdose, out on the street, but I'd prefer not to lose €1,000 a month due to someone else's misfortune.

One of my pet hates is when someone you don't know makes their problem your problem.

With being a landlord/lady in a residential setting there is almost a social responsibility, you can't get rid of an otherwise good tenant just because they become old or unwell.

There is good and bad in all age groups, people from an older generation can have more cop on.

Axwell

Plebs wrote: »

When an unemployed individual presents himself as a prospective tenant, you have to make a decision as to his reliability based on imperfect information (i.e. you don't know this person). You can do all the checking in the world, but they can still turn out to be a dud tenant.

The same is true for any tennant,whether they are unemployed or not. An employed person can just as easily be a bad tennat not respecting the property, having parties, not paying bills or missing out on rent payments.

Plebs wrote: »

Personally, I'd steer well clear of unemployed persons, heavy drinkers, drug users, people with young children, sick people and people over 40. You won't be able to get them out when they stop paying the rent. I'd never put someone who has just been diagnosed with cancer, or a manic depressive who has just had a drug overdose, out on the street, but I'd prefer not to lose €1,000 a month due to someone else's misfortune.

One of my pet hates is when someone you don't know makes their problem your problem.

You have basically cancelled out the chance of renting the property at all with that attitude. Students are unemployed so that cancels them out, most graduates and working people in the age bracket of 20-30 enjoy their weekends and like to drink and are on low wages starting out their careers. Once people reach their 30's they are in relationships looking to marry and have kids, again you dont want to rent if they have small kids. Seriously get off your high horse, I hope no one you know or yourself ever has the misfortune of running into a bit of bad luck or becoming ill and is unfortunate enough to have someone like you as a landlord.

Darlughda

Dymo wrote: »

Problem is you won't get your rent, the money is paid directly into their account and you could end up begging for it..

How exactly does this differ from the average renter whose salary is paid into their account?

Plebs wrote: »

However, when you're in business, you've to aim at a target market. That means you classify individuals into a group. When an unemployed individual presents himself as a prospective tenant, you have to make a decision as to his reliability based on imperfect information (i.e. you don't know this person). You can do all the checking in the world, but they can still turn out to be a dud tenant.

If you take on a high risk tenant, you should be demanding higher rent. Banks do it all the time: there's a reason low income earners use MBNA and pay through the teeth in interest.

Personally, I'd steer well clear of unemployed persons, heavy drinkers, drug users, people with young children, sick people and people over 40. You won't be able to get them out when they stop paying the rent. I'd never put someone who has just been diagnosed with cancer, or a manic depressive who has just had a drug overdose, out on the street, but I'd prefer not to lose €1,000 a month due to someone else's misfortune.

One of my pet hates is when someone you don't know makes their problem your problem.

The obove odious post is the very reason I believe inherently people's homes and their very livelihood should not be a commodity on the market.
We all need somewhere to live, yet even before the boom years it has become accepted in society that property is an investment, strictly to be thought of in monetary terms.

This is shockingly immoral. Just because it is still the status quo in society is to boast about your wealth or assets in terms of property, the fact remains there are so many of us dependent on social welfare and rent allowance.

May long term illness, poverty, or disablement affect you or your loved ones one day, Plebs, and I have never uttered such a curse on anyone before.

If only we had an equitable renting system like other places in Europe!

The housing crisis is about to burst open at the seams and it is terrible that we had the worst slums in Europe during the early years of the 20th century, blamed the Brits for it and now Irish nouveau riche speculator landlords can have such cavalier attitudes towards the people in society who are the ones who really make up the rental market!

Plebs

Axwell wrote: »

The same is true for any tennant,whether they are unemployed or not. An employed person can just as easily be a bad tennat not respecting the property, having parties, not paying bills or missing out on rent payments.

You've missed the point. Minimising risk is a key part of any successful business.

Axwell wrote: »

You have basically cancelled out the chance of renting the property at all with that attitude. Students are unemployed so that cancels them out, most graduates and working people in the age bracket of 20-30 enjoy their weekends and like to drink and are on low wages starting out their careers. Once people reach their 30's they are in relationships looking to marry and have kids, again you dont want to rent if they have small kids. Seriously get off your high horse, I hope no one you know or yourself ever has the misfortune of running into a bit of bad luck or becoming ill and is unfortunate enough to have someone like you as a landlord.

Not really. Students are great because they don't complain much and if they damage anything/don't pay, you can always phone their parents. Plus, they don't stay longer than 3 years and the asset retains its liquidity. "Young professionals" are also good: they move on after around 3 years.

I have the utmost sympathy for people with young children who fall on hard times and for sick people being unable to work. There's a reason why people work their asses off in their 20s and 30s, save and take out life insurance policies: to provide security for you and your family if things go wrong.

Landlords do have a greater degree of social responsibility compared to other businesses, but there is a limit to this responsibility. There's a time when you need to call on your family, friends and charities. More often than not, these people are only too willing to keep their hands in their pockets, do nothing, and let someone else take up the slack, ignoring their own duties in the process.

EKRIUQ

Penny Lane wrote: »

Second everything Dymo said but would add that you can request that the social pays direct to your account so that's a safety net.

If that was true it would be great, but civil liberties put a stop to that. If the landlord was guaranteed getting the rent into their bank account I'm sure a lot more would take on RA tenants.

mikemac

Landlords sure do love to get "young professionals" :rolleyes:

It's on ad's on daft.
Students or people on rent allowance are options also but you don't see too many ad's with "ideal for...." this group

But there are more rented property then professionals.
Renters market.

So the landlord needs to get the best tenant they can.
References only tell you so much and realy, it could be a mobile number to their mate.
Work references are good but not everyone is working or might be going back to colllege.

Realy, often a landlords best skill is judging someone on their gut instinct. I'd be rubbish at it, I trust everyone!

Sir Oxman

EKRIUQ wrote: »

If that was true it would be great, but civil liberties put a stop to that. If the landlord was guaranteed getting the rent into their bank account I'm sure a lot more would take on RA tenants.

This is an option but the tenant must request it from the CWO.
It is an easy thing for the landlord to ask the tenant to request the CWO pay the RA into the ll's account and easy enough to insist on proof that this happened.

As for Plebs, business is business, but to categorise a huge swathe of people like that is at best, ignorant.
Your students don't complain line is a giveaway - if you could you probably would rent out a dilapidated ****hole and target the non-complainers.

Plebs

gambiaman wrote: »

As for Plebs, business is business, but to categorise a huge swathe of people like that is at best, ignorant.

Businesses categorise people all the time. Security guards, the gardai and soldiers do it too. Not to do so would be naive. If you walk into an interview in an unironed M&S suit and a polyester tie, don't expect to be given a job. Appearance, perception and what you've achieved in life is also important when someone entrusts you with a €500k asset.

EKRIUQ

gambiaman wrote: »

This is an option but the tenant must request it from the CWO.

That's the way it was years ago but now its different or at least it is in the 5 counties around me , a past tenant wrote a letter to the social welfare officer requesting it to be done and no way would they permit it. It's more paper work for them.

With regard Plebs idea, it sounds good but he'd have the civil liberty brigade down on him like a tonne of bricks.

Sir Oxman

Plebs wrote: »

Businesses categorise people all the time. Security guards, the gardai and soldiers do it too. Not to do so would be naive. If you walk into an interview in an unironed M&S suit and a polyester tie, don't expect to be given a job. Appearance, perception and what you've achieved in life is also important when someone entrusts you with a €500k asset.

No problem with that - but your initial post was to say point blank not to consider RA recipients and then to say categorically that a LL would not be able to 'get them out'??
Really bad form - you should know that status means nothing on it's own.
And that includes your 'desirable' targets.

Sir Oxman

EKRIUQ wrote: »

That's the way it was years ago but now its different or at least it is in the 5 counties around me , a past tenant wrote a letter to the social welfare officer requesting it to be done and no way would they permit it. It's more paper work for them.

With regard Plebs idea, it sounds good but he'd have the civil liberty brigade down on him like a tonne of bricks.

Not true in my case.
I was made redundant recently and decided to move from my expensive rental, when I applied and was accepted I was given the choice of payment to me or to the LL's account directly. I do understand that CWOs around teh country and in neighboring parts of Dublin seem to apply rules differently, but the option was there for me.

I didn't actually receive any RA as I got a lovely place that I decided I could afford myself for the time being and with it, a very nice, decent landlord that didn't have any preconceptions but who was thorough in his research on me (which is totally fine and shows me that he knows his business)
Nice to come across some people that don't look down on someone who has worked all their life and now finds themselves out of work.

ricman

IN CERTAIN areas ,its alot easier to rent out a 3bed house to a single mother on ra, the no of working people who are gonna rent a house in that area is limited,unless you split it up, ie rent 3 rooms to 3 tenants.
I KNOW a single mother 1 kid,who rented a house on ra for 7 years before she got a council apartment.rent was 1000 euro per month.

mufcboy1999

Plebs wrote: »

Businesses categorise people all the time. Security guards, the gardai and soldiers do it too. Not to do so would be naive. If you walk into an interview in an unironed M&S suit and a polyester tie, don't expect to be given a job. Appearance, perception and what you've achieved in life is also important when someone entrusts you with a €500k asset.

plebs if i had to choose a categorise you, you'd be in the bracket ignorant snobby silver spooner:D

Plebs

mufcboy1999 wrote: »

plebs if i had to choose a categorise you, you'd be in the bracket ignorant snobby silver spooner:D

Now who's doing the pigeon-holing.