Benefits Tenant in Rent Arrears

In theory there should be no difference when dealing with a tenant in receipt of housing benefits and in rent arrears than those working. But there is [see Dealing with Rent Arrears - Benefits].

Where a tenant in receipt of Housing Allowance and is in rent arrears the Landlord should:

  • Ask the tenant to complete the authority form so they may discuss the situation with Housing Benefits Officer
  • Call the council and ask them to stay [suspend] payment to the tenant where the tenant is over 8 weeks in arrears and inform the council you are issuing possession proceedings.
  • Send a LHA rent arrears letter to the council and a copy of the Section 8 Notice . The reason you do this is to demonstrate to the council that the tenant by their actions have made themselves vulnerable; hence is being at risk of being made homeless - This by definition should be sufficient to have payment made direct to the Landlord or Letting Agent

The following should be considered:

Direct Payment vs. risk - Sadly whilst you may achieve having the rent paid direct to yourself, you also transfer liability. Should it transpire at a later stage the tenant made an ineligible claim the council may pursue you for the overpayment for they will argue that you were the beneficiary? Should this happen simply call the Members Helpline.  

Cash in - Tenants Out - Sometimes a tenant know the rules and once the landlord is receiving the rent direct they will simply move on to the next landlord, start a new claim and get the rent paid direct again. Housing Benefits know the tenant is a persistent non payer and have the authority to cease payment to such tenant but do not do so.

I want a council house - Often tenants are misguided and believe that by being made homeless they will jump up the council waiting list. Whilst tenants by non payment of rent make themselves voluntarily homeless and do not qualify for housing, the fact remains those with children must be housed. Councils and other Registered Social Landlords prefer to house tenants with a good history of payment of rent. Inform the tenants it is in their interests to pay the rent and in return you will give them good references and evict them on section 21 Notice citing you have decided to sell.

Councils Homeless Unit and Officers:

 

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