Does Tenant Need 30 days notice?

[Mr. Sparkle]

I'm increasing the rent for a tenant on Universal Credit

They have verbally agreed the rent increase (which is above the LHA rate)

I'm sending them a letter to confirm the new amount.

I would like the new start date for payment to be in two weeks (i.e. the new start date for the AST)

What I want to know is whether I can do this... or whether the tenant need to be given notice e.g. 30 days i can receive the rent increase?

[theartfullodger]

If they start paying (say next day) then that's it, sorted. But if they don't your letter has no legal effect, only s13 notice can (which they can appeal against).

Wait and see what happens.

[Mr. Sparkle]

Unfortunately they can't pay the next day because they get paid by the DWP (for the housing element), then they pay me the rent

Allegedly, they are being paid a lower amount than the current LHA rate, so in theory they can't afford to pay the rent increase until there Housing element payment is increased

I'm not fully versed on the ins and out.. but the tenant said that they would need the letter as proof the rent is increasing

They would have to send a copy to the DWP (or similar) so that they increase her housing element to cover the rent

Even though they have verbally agreed to the rent increase, would it just be better to serve a section 13 and avoid all this palava?

[ash72]

If the T is entitled to the Max. allowance for claiming their benefits, then they would get the full LHA rates, if they aren't entitled to the max benefits then their LHA will be adjusted accordingly as well their other benefits to what they are entitled to obtain,

If the payment is agreed you should inform the DWP of the rent, you would need to allow at least 1 month in order for them to re-adjust the payment etc, also you could ask for the payment to come directly to you rather than the T. As mentioned if they aren't entitled to the full LHA rate then they would only get a proportion of the rate, the remainder would need to come from the T. If the T gets the full allowance you should be increase the rent annually in line with the LHA rates which come out around April each year, as the LHA rates are usually much lower than those in the private sector.

[Mr. Sparkle]

If the payment is agreed you should inform the DWP of the rent

Do I simply call the DWP to inform the of this?

Rent increase was agreed verbally. Should I send the informal letter or serve the s13?

You would need to allow at least 1 month in order for them to re-adjust the payment etc

Okay so I need to wait for the adjustment to take place

also you could ask for the payment to come directly to you rather than the T.

I have tried this on many occassions and each time it has failed. The last time, I was told that the tenant needs to be in arrears for many months before they would consider direct payments to the landlord

It's nonsense

As mentioned if they aren't entitled to the full LHA rate then they would only get a proportion of the rate, the remainder would need to come from the T. If the T gets the full allowance you should be increase the rent annually in line with the LHA rates which come out around April each year, as the LHA rates are usually much lower than those in the private sector.

The tenant is very secretive, so I do not not know whether the following is fact, however I believe that the tenant will be entitled to the full LHA rate.

The new rent I want is higher than the LHA rate, so they would need to pay a top up each month

[theartfullodger]

Benefits agency understandably wants documents from landlord or agents. Otherwise tenants would be too tempted to say "rent's gone up £50" and then their benefit increases.

Mind you tax fiddling is way way way a bigger loss to the Exchequer than benefit fraud. Whatever some scurrilous papers claim

[nukecad]

Allegedly, they are being paid a lower amount than the current LHA rate, so in theory they can't afford to pay the rent increase until there Housing element payment is increased

I'd be asking why they say that they are getting less than LHA rate?

There are a few things that could do that:

• If the actual rent is less than LHA rate, then only the actual rent is paid. (Doesn't seem to apply here).
• It they are subject to the benefits cap in UC it's the Housing Element that gets reduced. (Doesn't seem to apply here).
• If they have a sanction that is reducing their Housing Element. (Sanctions to the HE only apply to part time workers deemed to be doing too little to find full-time work - it shouldn't be being applied under covid).
• If they have a non-dependant deduction. (Someone else is living there who the DWP say should be contributing towards the rent).

From what you have said a non dependant deduction would seem to be the only likely reason for reducing UC-HE (if they are telling the truth about that):
https://www.entitledto.co.uk/help/non-dependants

If that is the case then it won't change unless the person is actually a dependant and the DWP have made a mistake, or they move out.
The non dependant may be able to claim UC in their own right, in which case it will include a HE for their share of the rent.
(Some people have difficulty understanding that 'grown up' children still living with them are non dependants, and spend months futilely arguing against non dependant decuctions).

[Mr. Sparkle]

The current rent is below the current LHA rate

Hence the increase in rent

[theartfullodger]

Only if it's fair for that property.

[nukecad]

The current rent is below the current LHA rate

Hence the increase in rent

Ah, sorry I missread your orignal post as saying current rent was above LHA, I see now it's the increased rent that will be above LHA.

It will take a least a month after the DWP are informed of the rise before that increase is reflected in the claimants UC and the UC-HE at LHA paid to the claimant, UC is paid a month in arrears.
The DWP will want to see evidence of the rent rise, and will almost certainly contact you to confirm that what the tenant is saying about any rise is true.