Tenant on benefits but want to pay cash

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  • Tenant on benefits but want to pay cash


    I have a tenant in one of my properties who is on LHA and she advised my agent she wants to pay cash , she expects the LHA payment sometime this week (confirmed by the council). She is also on council tax benefit

    What I am puzzled is despite her having all agent bank account details she wants to walk in and pay cash. Any ideas / previous experiences that does seem fishy.

    Also agents claim that other people (her daughter and her child) leave as 'occupants'. I think they will challenge her on this

    Any experiences are greatly appreciated

  • #2
    Just to be clear. The tenant does have a bank account. She also totally refused to setup a standing order


    • #3
      How long has she been a tenant & how has she paid up till now?

      What does tenancy state about how rent is paid?

      Pretty certain something fishy going on - I'd evict unless she had a very good reason (& I can't think of one)
      I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...


      • #4
        But in the short term - go to your own bank, get 6 paying-in slips, fill them out, give them to tenant saying you can pay cash in {here} and they will give you a receipt.


        • #5
          She paid her 'topup' in the bank but now refuses to the agent to pay by bank transfer, but rather wants to bring cash. I will follow the advice on the payslips, I guess the first issue is to have some sort of proof how much she pays.

          I dont get the 'cash' business, it seems to be alarming. Any other ideas on potential motives?

          In terms of eviction, yes I agree this is the approach I will be taking


          • #6
            The tenancy doesnt explicitly state how the rent needs to be paid. It just says the amount. The tenant has been there for 1 1/2 months.


            • #7
              If tenancy doeszn't specify how rent is paid you cannot (may not..) refuse cash..

              My suspicions are either

              - that she can only cope with/is only happy with/much prefers to use cash only, drawing out from the bank what she needs (her choice, but a PIA...some people do prefer cash, it's a free country...) or
              - Someone's on the fiddle - subletting (you hinted), working cash-in-claw & needs to offload ££££, has money stashed away as cash to ensure benefit qualification... whatever...

              Either way I'd prefer easily provable records with nice bank statements to show HMRC and/or Judge if needing to evict;... Bit brutal but I'd ask to pop round... and ask why cash (3rd question after a couple of innocent ones...) and observe what her body-language & eyes,.... If uncomfortable with what she says/how she reacts, find another tenant...
              I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...


              • #8
                Maybe she is overdrawn at the bank and is having her HB paid to her by cheque and is clearing them via a savings account. I don't think you can have standing orders on savings account.


                • #9
                  Originally posted by coolandr View Post
                  I will follow the advice on the payslips, I guess the first issue is to have some sort of proof how much she pays.
                  If she pays in at the bank, there's no problem of proof: She'll get a receipt from the bank and you'll see the same amount appear on your account.
                  It's the best option for cash payments, imo.


                  • #10
                    Several of my tenants pay cash. Most of the HMO do (I collect it when I clean the house, weekly), and one of my HB does too. They draw out their weekly cash for everything including the rent. For some people this is just an easier way of controlling their money and limiting what they spend.

                    I also find it easier as I write the amount in the rentbook and my record book. Then I go the council and pay the council tax in cash, water rates in cash, food bill in cash........etc


                    • #11
                      My Mum won't set up DDs nor SOs. It does my head in a bit as she isn't very mobile and I worry that she will have a fall when she goes into town to do her banking/pays rent/bills weekly.

                      I've given up trying. She just tells me to hush!.
                      I'm a good tenant with great landlords
                      I'm also a living, breathing, fully cooked female.


                      • #12
                        don't be scared of cash - its actually what all the little electronic numbers are meant to represent.

                        If you are scared of cash then get them to pay it into the bank for you.

                        As said by others many prefer to hold pound notes - they then know how much they have - rather than working on credit and perhaps not knowing how much they owe.


                        • #13
                          the-smiths- quite right! provide the T with a number of paying in slips.

                          mind you, I've just been in court (see my other post about the awful time we had)


                          • #14
                            Just because your tenant wants to pay cash doesnt mean she gonna be a bad paying tenant. I have a tenant who is on LHA and gets it paid into his bank, but because he needs to top it up with some of his own money, he prefers to draw it out of his account so he can top up and pay cash. He's a good tenant and never missed a rent payment. He is old school who prefers to hand money over so he know it has been paid on time!!

                            The morale of the story is, not all people are the same! Some people like paying cash as they like to physically hand over the money to ensure it has been received!!


                            • #15
                              We have a number of HB claimants who prefer to control their own finances this way. Although our local authority usually pays 4wkly, sometimes it goes wrong. Tenants who recieve variable HB awards due to changing hrs of part time work will sometime have a claim 'suspended' until the assessor gets a chance to check it over. This means that an HB payment may be a few days late and is NOT the claimants fault. Having a DD or SO would not allow this flexibility of payment dates.
                              It's just as easy to bounce a cheque, reject a DD or fail to pay with cash. All can work and all can fail. Don't judge until you have evidence of it going wrong. It might just work!
                              I may be a housing professional but my views, thoughts, opinions, advice, criticisms or otherwise on this board are mine and are not representative of my company, colleagues, managers. I am here as an independent human being who simply wants to learn new stuff, share ideas and interact with like minded people.


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