Adding clauses to AST

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    Adding clauses to AST

    I am letting out my property . I have had an inquiry from a person who is eligible to receive housing benefit/UC . I spoke to her housing officer and he stated that the rent money can be paid directly to me . so far , so good . I then asked how the process works : We sign the tenancy agreement , the council then send the deposit and then the T applies for U.C. I am naturally unwilling to sign a T.A until I can be assured that she will receive U.C and have it sent directly to me . Is it legally possible to insert a clause in the AST * This AST will only be valid once benefits have been confirmed and confirmed being paid directly to me, failure to complete that task and this AST will not be valid* or words to that effect .
    I just need to cover myself incase they are scammers and have no intention of paying the rent money .
    Would an added clause be legal ?

    #2
    I doubt that any such clause would be legal.

    The problem with claiming UC Housing Element is that most of the time (not all the time) the DWP want to see a written/signed tenancy agreement before paying it.

    That isn't what the UC legislation says is needed to prove a tenancy exists or will exist at all.
    But, as with many things, the DWP hold the purse strings and so until someone gets a court judgement to stop them insisting on a written TA whenever they want to then they can get away with it.

    Your other issue is direct payment.
    With UC this does not have the same rules as Housing Benefit did/does.

    The rules with UC Alternative Payment Arrangements to landlords have changed, (usually for the better), expect more changes in future. (eg. they are looking to change the 4-weekly payments to monthly payments to simplify things).
    Here is the current November 2019 guidance, note that there are different rules for Private or Social Landlords:
    https://www.gov.uk/government/public...-for-landlords

    Comment


      #3
      Is it possible to get a 'predetermination of rent'?

      Comment


        #4
        Just a note, UC may get reduced, what will you do when they can't afford the rent any longer?

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          #5
          I don't understand the question - you only hand over the keys and sign an agreement (and allow a tenancy to begin) when you are totally happy (for me, this would be never in this instance).

          You don't start a tenancy or sign any agreement - and then try to make that valid only once certain conditions are satisfied.

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            #6
            My concern is that the tenant may just keep the U.C rental money and not pay it to me or for some reason their application may be refused .
            If that were to happen , I would end up homeless sleeping on the streets as the property is my only place of abode .
            If I rent to tenants on H/B U.C , what steps should I take to safeguard myself ?

            Comment


              #7
              How to you protect yourself against employed tenants losing their jobs?
              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...

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                #8
                If you are worried then you don't choose such tenants. I wouldn't.

                What do you mean it "is your only place of abode"? Is this a lodger?

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                  #9
                  Originally posted by AndrewDod View Post
                  If you are worried then you don't choose such tenants. I wouldn't.

                  What do you mean it "is your only place of abode"? Is this a lodger?
                  I live in the property and its the only place where I can stay (apart from hotels or renting a place myself) and not having a rental income and taking legal action would put me in financial difficulty

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                    #10
                    So they are lodgers presuming you fill other criteria (shared facilities etc). Lodgers you can evict with no notice at all if rent is not paid, if they attack you or if they make you feel in any way uncomfortable in your own home (that is as it should be) - so your question is not relevant in the way you think it is. No clause is needed.

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                      #11
                      Originally posted by AndrewDod View Post
                      So they are lodgers presuming you fill other criteria (shared facilities etc). Lodgers you can evict with no notice at all if rent is not paid, if they attack you or if they make you feel in any way uncomfortable in your own home (that is as it should be) - so your question is not relevant in the way you think it is. No clause is needed.
                      No, I intend to move out and live abroad off the rent money

                      Comment


                        #12
                        Originally posted by Luke View Post
                        If I rent to tenants on H/B U.C , what steps should I take to safeguard myself ?
                        Go back in time, and don't do it.

                        Comment


                          #13
                          Originally posted by Luke View Post

                          No, I intend to move out and live abroad off the rent money
                          In that case don't dream of doing this. If you depend on the money and you are abroad - then letting to HB tenants who start off as lodgers is pretty dangerous (to you).

                          Comment


                            #14
                            Originally posted by AndrewDod View Post

                            In that case don't dream of doing this. If you depend on the money and you are abroad - then letting to HB tenants who start off as lodgers is pretty dangerous (to you).
                            They will begin as tenants , I will move out before they move in . I have just had another inquiry and the new potential tenants have a guarantor , they also are on U.C as well though . I'll just make sure that the guarantor is legit

                            Comment


                              #15
                              As the others have said you do not know (to be frank haven't got a clue) what you are proposing - it's going to end in stress for you and big fees for lawyers if you try what you are proposing.

                              Think about it and then find some other way.
                              If you are going abroad then selling the place is going to be much easier (and legal), buy another if/when you come back.

                              Comment

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