Tenant not forwarding housing benefit

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    Tenant not forwarding housing benefit

    Hi all , I am new here and looking for some guidance. I have had a tenant in my flat for two years, he has always paid his rent , (well just about, sometimes he would be a little late), he has now reverted to housing benefit as he has lost his job. The problem is that the tenant is receiving the benefit but when he cashes the cheque at his bank its eaten up with overdraft fees and bank charges.

    Has anyone experienced this with tenants and what are the ways around it, I have spoken to the council who are useless , they have suggested sending him an entitlement to benefit letter which he can show to the bank as they will not deduct charges from the cheques as they are benefits.?

    Any help , guidance or advice would be much appreciated.

    Malc

    #2
    Speak to the chief housing benefits/LHA officer at the relevant council and say that your tenant is apparently vulnerable and unable to budget and that he may become homeless if you are forced to take possession action - ask them to suspend further payments to the tenant on this basis with a view to making a decision to send future payments to you as the landlord.

    It used to be 8 weeks arrears, then the paying authority HAD to send payments to the landlord, now its discretionary less if it can be demonstrated that there is a possibility of money management issues resulting in payments not being forwarded on to you.

    Comment


      #3
      In addition to DJBs advice, I would ask how much rent is unpaid? If it is less than 2 months worth, you should send your tenant a section 8 notice under grounds 10 & 11. This may focus his attention on the problem.

      If it is more than 2 months unpaid, then send the same notice including ground 8. You need a tenant who pays his rent - 14 days after serving this notice you can apply to the court for possession. If there are still 2 months unpaid at the time of the hearing, the judge HAS to give you possession. Without ground 8 it is at the judges discretion, and probably not worth doing.

      Of course, if the tenant is not in a 'fixed term' contract you could use s21, but unless you have previously served a s21 notice to him - s8 will be quicker.

      Comment


        #4
        The tenant needs to contact the housing benefit dept and stop it going into his account.
        Allow tenants to protect their own deposits. I want free money when they do it wrong

        Comment


          #5
          I agree with thesaint.

          You could suggest the Tenant opens a basic bank account with another bank for his benefits to be paid into.

          Make sure it is with another bank though (preferably with another banking group). Banks are able to recover their debts from other accounts a person holds with the bank.

          Only do this if you want to keep the Tenant on, if not take Snorkerz's route.

          Comment


            #6
            Originally posted by roryl View Post
            Snorkerz's route.
            That sounds like 'a raucous snout'.

            (Sorry.)
            'Pause you who read this, and think for a moment of the long chain of iron or gold, of thorns or flowers, that would never have bound you, but for the formation fo the first link on one memorable day'. Charles Dickens, Great Expectations

            Comment


              #7
              Originally posted by mind the gap View Post
              That sounds like 'a raucous snout'.

              (Sorry.)
              Far worse has been said! Even on this forum.

              Comment


                #8
                Originally posted by Snorkerz View Post
                Far worse has been said! Even on this forum.
                I cannot believe it, dear boy.
                'Pause you who read this, and think for a moment of the long chain of iron or gold, of thorns or flowers, that would never have bound you, but for the formation fo the first link on one memorable day'. Charles Dickens, Great Expectations

                Comment

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