Council funds tenant's rent deposit

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    Council funds tenant's rent deposit

    My property was empty for a while and I was contacted by the council and told about their "rent deposit scheme". This means they guarantee the deposit if I have one of their tenants. You don't physically get hold of the money but it is there if they do not pay the rent etc. I thought this sounded a good idea as I had had problems with previous tenants even though I used a management company. Maybe having council people would be better.
    Their proposed tenant only worked part time and the rest of her income came from DSS etc. It was agreed that the council would send me their share of her rent and she would pay the rest. I also agreed to wait a full month before the first lot of rent was paid to allow the tenant to get herself sorted.
    I know, it was stupid!
    Now it is 4 days past the date when the rent should be paid but nothing from either the tenant or the council, neither of whom have got back to me following phone calls.
    Have I made a wrong decision, does anyone else know about the "rent deposit scheme"?

    #2
    Rent deposit schemes are fine.

    The issue you have is with Housing Benefit claims, which take MORE than 4 weeks to complete!

    Many of the Rent schemes place the tenant in a property and then leave them to it so you need to be sure that your tenant has applied for HB, if not you need to get on their case and get it sorted.
    GOVERNMENT HEALTH WARNING: I am a woman and am therefore prone to episodes of PMT... if you don't like what I have to say you can jolly well put it in your pipe and SMOKE IT!!

    Oh and on a serious note... I am NOT a Legal person and therefore anything I post could be complete and utter drivel... but its what I have learned in the University called Life!

    Comment


      #3
      Sorry about the delay getting back to you, been away from my computer for a while. You were right, it had taken longer to sort out the rent rebate etc. and I have now had my rent. Problem number 2 is that the tenant has started a new job, she will be paid too much for rent rebate, but in my view not enough to live in the flat and pay all her bills, although she insists she will be OK. She has asked me to defer her monthly payment for 2 weeks while she is in the transition stage and although I feel sorry for her and know she is trying to get her life back on track would I be silly to agree to this?
      It would essentially mean that on the day she leaves she would owe 6 weeks rent as I agreed she could pay me at the end of the month not in advance, again, I felt she needed support.

      Comment


        #4
        If she can't pay you, there is nothing you can do, even if you 'insist'.

        Best sit down and work out how you can see the situation progressing in the future to your satisfaction that is reasonable for the tenant too, then going through it with the tenant, who will hopefully agree. If not, then you will have to think about giving her notice for the end of the fixed period.

        Keep the relationship sweet if you think she is doing the best she can, or your tenant may loose the gift of communication with you altogether.
        All posts in good faith, but do not rely on them

        * * * * * ** * * * * * * * * * * * *

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          #5
          Thank you very much. I will do as you suggest and talk to her. Maybe we can sort something out to help her manage.

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