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Renting to social welfare tenant

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  • 15-08-2012 9:03am
    #1
    Chicke
    Registered Users Posts: 107 ✭✭


    We are renting out a house and are considering a social welfare family.thing is what they get from the government is not enough to cover the rent. They have asked me to sign a lease saying they are paying less than they will be and that they will cover the difference.they said that if they put the correct amount of the rent on the lease it will be rejected.Is this true.a bit nervous of this


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    #2
    puffishoes
    Banned (with Prison Access) Posts: 690 ✭✭✭puffishoes


    I would avoid lieing for anyone.

    You can check the rent allowance amounts online yourself.


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    #3
    Moonbeam
    Moderators, Education Moderators, Society & Culture Moderators Posts: 18,953 Mod ✭✭✭✭Moonbeam


    It is not allowed but it does not stop people doing it.
    Personally as I know it is not allowed I wold not do it.


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    #4
    Forest Demon
    Closed Accounts Posts: 632 ✭✭✭Forest Demon


    Chicke wrote: »
    We are renting out a house and are considering a social welfare family.thing is what they get from the government is not enough to cover the rent. They have asked me to sign a lease saying they are paying less than they will be and that they will cover the difference.they said that if they put the correct amount of the rent on the lease it will be rejected.Is this true.a bit nervous of this

    It is 100% true what they said about it being rejected. If the amount is more then the amount allowed for the area it will rejected.

    Check the following link and see the maximum total rent for your area:
    http://www.citizensinformation.ie/en/social_welfare/social_welfare_payments/supplementary_welfare_schemes/rent_supplement.html

    With the reduced rent allowance in the previous budget this is the only way some people can afford the rent now. They will be paying you the extra out of their welfare and will be very tight despite best intentions.

    For example the maximum rant payable in Naas for 2 adults and 2 children is 725 per month. Nothing really available for that amount so a family might offer 75 out of their welfare and add it to the 725 (800 rent). that would make the overall contribution about 215 per month from the family's welfare (or savings) instead of 140.

    The rents are supposed to be based on the market level but in some areas it has not worked out that way. For example, Naas is more expensive to rent in then Athy for instance and the rent allowance is the same amount. If you are temporally out of work and have children in school in Naas then moving to Athy might not be an option so subsidising the rent is the only way until you get back to work. Yes you are not supposed to do it but there are worse things you could do. It is not as if they are pocketing the money. Its costing them more.

    Only risk for you is that will not have a leg to stand on if they don't pay the extra as you will have signed up to the lower figure. Its a trust thing really.

    If they are a decent family then it might be an option that suits both parties. Contrary to what some people think there are decent hard working people who find themselves in this unenviable position at the moment.


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    #5
    Username99
    Closed Accounts Posts: 235 ✭✭Username99


    This is common practice throughout the country.


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    #6
    tricialou
    Banned (with Prison Access) Posts: 94 ✭✭tricialou


    Chicke wrote: »
    We are renting out a house and are considering a social welfare family.thing is what they get from the government is not enough to cover the rent. They have asked me to sign a lease saying they are paying less than they will be and that they will cover the difference.they said that if they put the correct amount of the rent on the lease it will be rejected.Is this true.a bit nervous of this

    many landlords do this I dont think it is a major problem.My friends landlord just did it for her - she did not know when she moved in that SWA would not cover that amount. If they are good tenants then why not? Alot of respectable families are on SW now !I have def heard of a few landlords doing it!


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    #7
    ameee
    Registered Users Posts: 363 ✭✭ameee


    A lot of people do this ,for a lot of people on rent allowance it is the only way to find somewhere half decent for their family to live.


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    #8
    edellc
    Closed Accounts Posts: 1,787 ✭✭✭edellc


    OP yes people are desperate and have to do this these days, but if they are decent people is there any chance you could lower your rent to within the limit that way you get decent renters and they get to live within their means without struggling anymore than they are at present.


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    #9
    athtrasna
    Closed Accounts Posts: 13,420 ✭✭✭✭athtrasna


    Chicke wrote: »
    We are renting out a house and are considering a social welfare family.thing is what they get from the government is not enough to cover the rent. They have asked me to sign a lease saying they are paying less than they will be and that they will cover the difference.they said that if they put the correct amount of the rent on the lease it will be rejected.Is this true.a bit nervous of this

    Bottom line is it is illegal. Yes it's commonly done, but that doesn't make it right. And as another poster has mentioned, if the tenants don't pay the extra, you have no right to claim it if the lease has a lower amount than the actual rent.


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    #10
    djimi
    Registered Users Posts: 13,237 ✭✭✭✭djimi


    Just bear in mind that if you sign a lease stating a lower amount then that is all they legally have to pay, and if you are relying on the difference that they say they will give you but they break their promise then there is nothing that you can do to persue them for the rest of the money.

    If you are uncomfortable with such an arrangement then walk away. Its up to you really; personally if it was me and the house was in an area where renting it out at your asking price isnt much if an issue then Id look elsewhere for tenants.


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