Tenant lost her job & can't afford rent where do i stand???

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    Tenant lost her job & can't afford rent where do i stand???

    Hi i have a tenant who is just starting her 3rd month of a 6 month AST her rent was due on the 7th one week prior we were contacted to say she had lost her job and could not afford to pay the rent. She said she had been in contact with the Dept Of Work & Pension's and that there would be no problem with them stepping in and paying her rent as she is a single person renting a one bed flat and that they should be paying the rent to her by the 18th of this month (all seemed a bit quick & convienent to me!!!) when i carried out an online search it seemed to suggest under 25's may be required to move to a bed-sit shared facilities type property?? as we do not normally rent to Dss i am unfamilar with the protocal!! My question's are 1) Is this a normal reaction from the DWP in this very quick timescale 2) Her deposit is with the DPS can i hold on to this in lew of monies not received 3) Her rent is now overdue albeit by one day should we not receive any communication from her how long do i leave it before sending a rent arrears letter 4)Having never had to evict a Tenant what are the steps with section 8-21 and what do they refer to & timescale's for issueing (sorry to sound naive but never had to go down this route) Many Thanks Simon

    #2
    They (local council)will NOT pay her rent by 18th of this month. She must first fill out a HB claim form which you must also sign noting that it is already the 8th. Local Councils have up to 28 days to deal with claims and also DWP do not, to the best of my knowledge, pay rent its the local council!!. If she is claiming HB then she has to produce a claim form for you to complete. Ensure that she gives you third party authority to access information about state of claim etc. Indeed I would go so far as to ring local council and ask them to send you a copy or simple go get one so that you can familarise yourself with contents.

    Whilst other experts will advise you if I was in your situation I would issue a a section 21 with immediacy (do not waste your time on section 8 you rarely recover money)but ensure you follow the rules for S21. There is plenty of advice around on the internet and in these forums. They are very simple to complete BUT ensure the rules are followed with regard to dates and methods of delivery etc. As soon as I read your post alarms went off and you should anticipate a whole series of excuses, good stories etc, for not paying you some of which are designed to get your sympathy. Do not get sucked in at the end of the day you are running a business not a charity shop.!! In summary I think you are being strung along therefore S21 asap but follow the rules (forum experts will guide you) and do not, unless proved otherwise, believe a word that comes out of your tenants mouth!!! How does it go??? been there, done it got the t shirt good luck

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      #3
      The link below will tell how to serve a Section 21 notice.

      http://tenancyanswers.ucoz.com/index..._contract/0-37

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        #4
        hi,when my husband was made redundant and we had to claim dss,they put the claim through to housing for our rent to be covered,which had started to be paid by about 2 weeks later,so yes it can be quick! And when we moved to a different area and changed address and council,that was also paid by 3 weeks.

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          #5
          Thank's for the " head's up " its a shame she does seem like a nice girl and i dont want to jump the gun having said that a few things she has said are not adding up which is why i'm checking my position on here!!! i have messaged her tonight to arrange a meeting to discuss her situation if she reply's and we get face to face i will ask for a third party letter to be signed so we can check with the council, no reply and i will assume the worst and go with the S21 Just to clarify i do not need to send any warning letters first just follow the S21 proceedure?? Many Thanks for the quick replies Simon

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            #6
            On a quick read of the S21 it states it cannot be used until the fixed term has finished which is four months away????? should it not be a section 8 for non payment of rent????? CONFUSED!!!!!!!

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              #7
              I'm a new member, and by no means an expert but I know that you cannot issue a Section 21 until the initial term is up, and you cannot issue an S8 for arrears until she is 2 months behind on her rent. So at this precise moment, there's not a lot you can do.

              If it gets to 2 months in arrears, you can issue an S8, but it's likely to be some time before she's physically out. The council will advise her in no uncertain terms to stay to the bitter end (bailiffs knocking) and that's at least 3-4 months way.

              Your best bet, by far, is to accept HB payments. The problem of course is that she's under 25 and they will only pay the cost of a room which is a lot less than a one bed flat. But there may be different rules if the tenant is already occupying the property - the council will (presumably) not want to be instrumental in making the girl homeless, so they may agree to pay for the flat until the end of the statutory tenancy at which point she must move to a room somewhere.

              You should phone the local council and speak to the Landlord Liason Officer and get some advice. But I'm afraid that if you thought you could get her out in a few weeks, well, that just ain't going to happen.

              Comment


                #8
                I'm not a landlord but have a wide experience working with many of the vulnerable. She may have been told the 18th how long has her housing ben app been in their hands? My experience agrees with shelley councils do try to have things settled within four weeks however with the national influx of people seeking social housing and claiming housing ben some councils are running into 2 months. Get proof she has applied, if she has as others have advised it will be capped on age and being single so you'll probably lose out. Suggest she gets a cash in hand job to pay the extra that way when the tenancy comes to an end and she's still not working fulltime you may think better the devil you know?

                Comment


                  #9
                  Protect any deposit in an appproved scheme, provide T with reqd info, then issue a valid s21 to expire 2 months+1 day later or 1 day after end of fixed term (whichever is later)
                  Also get T to sign a DPA consent form for HB dept so you can obtain basic info on her claim.

                  Comment


                    #10
                    Despite the widespread views on this forum I maintain my orginal advice. Forget section 8 becuase you rarely recover on the basis that if she has no money now she will not have anything later. So you get lots of stress trying to recover but you cannot recover "Fresh Air".

                    You CAN Issue a section 21 before the end of the fixed term BUT is cannot be effective BEFORE the end of the fixed term. There is a good link in one of the earlier posts.

                    Re your meeting again I can only advise do not believe a word unless proved otherwise. She will tell you precisely what you wish to hear to maintain a roof our her head. Nice person or otherwise at the end of the day she is a tenant NOT your friend. Sounds harsh but it is the only mental approach to take if you do not wish to be sucked in.

                    The third party is not a separate letter it is a section within the claim form for benefit BUT beware she can withdraw that permission at anytime. Of course that assumes she has actually applied.

                    Re earlier post on Cash in hand to pay arrears.....do not advise such a line otherwise you are complicite in HB fraud.

                    In summary keep a business head on not an emotional head at the end of the day its about cashflow!!!

                    Comment


                      #11
                      Originally posted by Solent Watcher View Post
                      Forget section 8 becuase you rarely recover on the basis that if she has no money now she will not have anything later. So you get lots of stress trying to recover but you cannot recover "Fresh Air".

                      You CAN Issue a section 21 before the end of the fixed term BUT is cannot be effective BEFORE the end of the fixed term.
                      But that point is nearly 4 months away. I'd definitely serve the S21 (as a back up if nothing else), for sure; but if the tenant now stops paying rent full stop she'll be 2 months behind - at which point the OP could serve S8 - in less than a month's time.

                      I'd suggest reviewing the situation at that point, since S8 could be a considerably faster route to getting her out (I agree that recovery of the lost rent is unlikely to be an issue here).

                      Comment


                        #12
                        Thanks for the advice, i realise getting any unpaid monies is unlikely if she remains unemployed!! just needed to get the whole s8/s21 clear in my head i guess i'm hoping she is genuine and the council pull a rabbit out of the hat!!! i will contact the housing liason officer first thing monday to establish my position with obtaining proof of benefit application, if she fails to make contact i will persue via the S8/S21 Many Thanks for the advice Simon..

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                          #13
                          Solent Watcher Re earlier post on Cash in hand to pay arrears.....do not advise such a line otherwise you are complicite in HB fraud.

                          You should get your facts correct before you jump down someones throat.

                          a) not all cash in hand work is illegal

                          b) all benefit claimers are allowed to earn a certain amount before it affects the benefit.

                          Comment


                            #14
                            Without jumping down throats "Cash in Hand" is illegal IF NOT DECLARED to both HB/DWP/HMRC!!!

                            Benefit claimants are indeed allowed to work up to 16 hours per week before it affects their HB. As hours and the amount of income earned rises HB reduces JSA is similair I cannot remember the figures off hand although £52pw rings a faint, stress faint, bell.

                            Anyway back to original post.........stop hoping for rabbits and good luck!

                            Comment


                              #15
                              Solent Watcher Without jumping down throats "Cash in Hand" is illegal IF NOT DECLARED to both HB/DWP/HMRC!!!

                              Where in my post did I say anything about not declaring it?

                              I see you have taken my 2nd point more gracefully.

                              You really should think before you write, just my opinion mind you.

                              Comment

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