Rental allowance from a LL POV

Johnny Bitte

Hey all,
Got a call from a possible tenant tenant who is receiving rent allowance.

Now this is not a "are they good tenants" thread but how does it work, one.

She has asked if I need the 1st months rent and deposit up front which I said yes. then said she was receiving RA and couldnt provide the first months rent up front as they only pay week by week or at the end of the month,thats how it works.

So how does it work?

From what I can see the authority pays X (calculated by the community welfare officer) amount of the rent and the tenant makes up the rest?

So the authority would deposit their share into my account and a second payment would need to come from the tenant?

As theres not rent up front the tenant is always goin the be paying a month behind?

What would I need to do as landlord to register to have this tenant?

Would I have to meet the Welfare officer etc?

Just read that the gov increased what the tenant had to pay and decreased the rent limits in 2009.
Does that mean by decreasing what they'll pay out the LL just has to take it?
Whats the likely hood of them doing this again?

Thanks for any help people, I do not want to turn this woman away just because she receives the allowance but if its going to be hardship on me it will be a factor.

Snakeblood

The_Goose135 wrote: »

Hey all,
Got a call from a possible tenant tenant who is receiving rent allowance.

Now this is not a "are they good tenants" thread but how does it work, one.

She has asked if I need the 1st months rent and deposit up front which I said yes. then said she was receiving RA and couldnt provide the first months rent up front as they only pay week by week or at the end of the month,thats how it works.

So how does it work? Lets say the rent is €500
From what I can see the authority pays X (calculated by the community welfare officer) amount of the rent and the tenant makes up the rest?

So the authority would deposit their share into my account and a second payment would need to come from the tenant?

As theres not rent up front the tenant is always goin the be paying a month behind?

What would I need to do as landlord to register to have this tenant?

Would I have to meet the Welfare officer etc?

Just read that the gov increased what the tenant had to pay and decreased the rent limits in 2009.
Does that mean by decreasing what they'll pay out the LL just has to take it?
Whats the likely hood of them doing this again?

Thanks for any help people, I do not want to turn this woman away just because she receives the allowance but if its going to be hardship on me it will be a factor.

To the best of my knowledge, RA would include deposit, at the discretion of the Community Welfare Officer (This was years ago though).

There's a form you have to fill out, which the tenant should give you, I think that's the extent of your involvement.

There's a sort of cutoff for the Rent allowance alright, the tenant has to pay a certain amount, and the RA covers the rest.

I'd say the RA will be reduced in future. It's too much at the moment and provides an artificial floor on rents in Ireland.

Ciara22

Hi

I dont think tenants in receipt of rent allowance are any worse or better than any other tenants. But you should be aware that the rent payments are made in arrears every month and they don't stick to the rental payment date as set out by your lease. They also don't pay a deposit.

So unless the tenant can provide the full deposit and make up the difference in rent each month, I would not recommend it. Even if their rent allowance is reduced further down the line, your tenant will have signed an agreement to pay a certain level of rent for a set period, so make sure they are aware of this and can commit to the agreement.

Yes, some will say that it is 'guaranteed' rent but only until the housing department decide they will re-house the tenant somewhere else to save money, regardless of whether they signed a lease with you or not. This has happened to some of my tenants recently.

Also, payments are often delayed and its not the tenants fault so you could find yourself in a difficult position every month.

Johnny Bitte

Ciara22 wrote: »

Hi

until the housing department decide they will re-house the tenant somewhere else to save money, regardless of whether they signed a lease with you or not.

:eek: The feckers!!

It does honestly look like to much effort and risk to accept it right now.
As I ve read so many times its better to find the right tenant that pick the first one!!
Is Rent Allowance,Rent Supplement?

And Rent Accommodation Scheme is different yeah?

the_syco

The_Goose135 wrote: »

She has asked if I need the 1st months rent and deposit up front which I said yes. then said she was receiving RA and couldnt provide the first months rent up front as they only pay week by week or at the end of the month,thats how it works.

TBH, not your problem.

Johnny Bitte

the_syco wrote: »

TBH, not your problem.

Yeah,
Talked it over with a friend and there's to many con's to accept this.

I am surprised with a system that meant to help people find a place to live there's not more incentive towards LL's to take RA tenants.

Plus with the general election coming up, depending on who gets in and what policies they implement, it could be worse to have an RA in than a regular tenant.

Thanks for all your help people.:)

Yawns

Here's how it currently works.

The Tennant has to pay the 1st months deposit and rent themselves. They fill in the forms and need a copy of lease and other things. These days they also need proof that the landlord owns the property. This is to cut out on tennants renting from family members. A solictors letter stating you pwn the house is enough. You have to provide it tho. You can pay for it or the tennant can, the CWO will not. It'll be anywhere from 60 - 150 depending on the solictior.

I moved in November and had to recently go thru all this. I paid deposit and 1st months rent. Recieved Rent Allowance at end of december and every month since. The rent allowance gets paid to me at the end of the month into my bank account. I lodge total rent amount into landlords account on the assigned day every month. No ifs or buts about it. If there's a delay with Rent Allowance that's my problem not the landlords as far as I'm concerned.

My rent is 550 a month so I make mine up during the month at 185 for 3 weeks. That covers me for rent for the next month as I do it in advance. As part of this budget I basically have about 60 left each week to do a basic shop for all nessecary things. When I get RA and end of month I do a big shop and fill chest freezer so I have everything I need etc.

Rent allowance will prob be reduced again and if your renting in Dublin it will obvisouly be harder to come up with rent in advance so will depending on getting paid. Before I moved I was getting paid the RA weekly but still only lodged money on the 1 date into the ll's account.

Unless the tennant is a lone parent or in dire need of having to move in right away the local office will not cover the deposit. Afaik even if they do cover the deposit, they will not cover the 1st months rent. They only pay in arrears. The agent and myself made the sitituation very clear from start I will be responible for rent and once they sign the forms for ra etc it's nothing to do with them anymore and it's fine.

Make sure if you are doing it, to set out in simple terms that non-payment is no good. If they can't pay deposit and 1st months rent, then I wouldn't do it either. It could take from 2 weeks - 12 weeks to have everything sorted for rent allowance. Mine took 8 weeks even tho I had everything ready on my end, it just took that long to process. If they can't pay 1st months rent or deposit, will they be able to pay the 2nd month? As you know yourself all tennacies differ and those in receipt of allowance is no different. You can get a range from lovely and quiet to noisey and destructive or somewhere in between. At least this is not the problem for you.

Imo again I'll just stress it's not worth it if you don't have deposit and 1st months rent when they move in. Then tell them they need to cover the rent by a certain date each month.

Yawns

Sorry forgot to add that as a landlord you do not have to meet the CWO. The registration is you just registering the tennancy with PRTB. Give the tennant a copy of this and something that proves you own the place. I needed this in November, it was the first I had heard about it then when they asked. If I remember correctly there was a short list of what was acceptable as proof.

A copy of mortage statement, solicitors letter and 2 other things but for the life of me I can't remember. The solicitors letter was easiest as the ll worked in a firm and got it done for free and it's less invasive. I don't want to know his details or anything. A simple letterhead with a couple of lines saying

Mr X. is the owner of

Number X
Cardbord Box
Co. Backwards
Ireland

That was it. That satisfied the cwo. As the ll I would imagine to get such a letter would just be to go into the solicitor with a copy of mortage or w/e and they will write and stamp the letter. That way your details are yours and not available to tennants.

ricman

Usually the hse sends a check to the tenant,the tenant pays maybe ten per cent of the rent from his own income.The tenant CAN ASK the welfare officer for help with the deposit,basically the hse wants nothing to do with landlords.Except you fill in 1 page on the ra form,with name ,adress,phone no,
etc
ITS very difficult to get rent paid into your bank a/c from a ra tenant .
GET at least 700 as a deposit, if its a house rental.
RA Rates vary ,from county to county, ie dublin max ra =930 for a house,
much lower outside dublin.
if you want rent paid into a bank account, go for a private tenant.

cailinoBAC

As mentioned before, RA or no RA, don't take them in unless they can pay 1 month up front plus deposit. I didn't and regret it as it will take some time for the arrears to be cleared up, if at all. Luckily I have managed to get the rent paid directly to me (well, the 'guaranteed' part) so there will be some peace of mind.
As with all tenants there can be good and bad ones, but at least if you have received some money upfront you have a little bit of security, as it might take a few months to get the RA set up.

ennage

I am a LL and my tenant who is with me almost 4 years now requested to apply for rent allowance. A form was completed by my management agent (Manager of property) and a letter given to them to say that I was the registered owner of the property.
However, the tenant returned to say that this letter was inacceptable and that a solicitors letter was needed declaring this.
Is this the norm?
Seems a lot of unnecessary expense especially as the agent would have verified the information....
I'm interested to hear any comments about this!!

Yawns

This is normal. I needed a letter like this in November and I too tought an agents letter would suffice but it did not. They requested a solicitors letter. There's a few other things you could provide instead but the solicitors letter gives you the ll the most privacy.

Hope this helps.

ennage

Thanks Yawns . Tenants have now come back requesting a solicitors letter stating I am the owner of the property. Only thing is I'm wondering if this means the existing lease will need to be reviewed assuming they are looking for rent supplement.?? Agents hasn't asked for this but I am wondering if a new rental lease arrangement will also be necessary? IS the landlord supposed to have a copy of their application for rent allowance or would there be other legalities involved if they are accepted for rent allownace.? Would be interested in knowing other comments etc.,

Yawns

Nope you won't need a copy or even a new lease. Once it's determined they are staying there and the property belongs to you.

The letter should be the last thing they need from you for now. Every few months they will be sent a form which they must fill in and the LL must fill in 1 page too. It's just basic info such as LL name, property address and rent amount etc. The estate agent can fill this in on your behalf and you as the LL need not engage at all. The tennant sends this back into their CWO.

Money gets paid to tennant usually at end of the month. Down in the country they still seem to do it the old way. A guy I know moved and needed to apply but he didn't need any letters or proof of ownership, just a copy of lease. He also gets his RA weekly with dole.

electron

Yawns wrote: »

Down in the country they still seem to do it the old way. A guy I know moved and needed to apply but he didn't need any letters or proof of ownership, just a copy of lease. He also gets his RA weekly with dole.

such a requirement is not listed on their website, either. nor is it mentioned on the application forms.

Yawns

It was mentioned on the new application forms I recieved from Dublin office. Apparently as the poster above has pointed out, his tennants were also asked for it.

In the countryside they are still not asking for it tho.

It would appear the website for that section was updated back in March 2009 too.

ennage

I suppose what I am asking is if tenants are applying for rent allowance .. Will they still be obliged to use same rental payment methods as outlined in the original lease given that they are getting part payment from Social Welfare. Does rent supplement payments affect how the rent is paid to the landlord. My one concern is that they will pay only part of the rent due while tey are waiting on the welfare payments.Not sure how this works!! Does anyone??

Yawns

That's up to how the tennant manages their budget and how much rent is.

In my situation I can afford to do less shopping and bills each week, pay off rent out of money and then do a big shop and pay bills with rent cheque.