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Rent arrears from council

Started by egoprime, January 09, 2016, 12:40:26 PM

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egoprime

I have just heard from a agent, that if the tenant is getting housing benefit and they don't pay, after the arrears amounts too  over £1000 the LL can ask the council to pay them the outstanding monies is this true? also if there is outstanding rent when they leave can the LL claim it back from the deposit?
Ego

theangrylandlord

Fire the agent, get another one.

Whilst it is true the failure to pay rent can be recovered from the deposit (assuming the deposit will cover 4/5 months of missed rent while you seek as possesion order!) there is no way the council will cover your losses.
Usually the council will not even talk to you as you have no agreement with the council.

On the other hand the council may actually help the tenant to avoid eviction/re-possesion as its free housing for them when they stop paying benefits to the tenant....

DO NOT TRUST COUNCILS!!

Best of luck

Jewels

Once the tenant is in two months arrears, you can approach the authority and ask that the rent be paid directly to you.  It can work like this:
Your rent is due on 1st of month.  The tenant doesn't pay
1st of month rolls around again and they still don't pay.  They are now technically two months in arrears.  Approach your local authority and tell them.  They then should automatically swap it to you. 
However be aware that they may not be paying the tenant the full rent.


theangrylandlord

#3
Jewels would the council also reimburse the arrears or just pay the rent going forward?

Jewels

Only going forward unfortunately.  However, have you might want to have a word with your tenant.
I agree with theangrylandlord.  I would fire the agent and either do it yourself of get someone on the case who can offer you practical help.
If you want to PM me i could give you some further advice.

egoprime

Thanks Jewels

Quote"Once the tenant is in two months arrears, you can approach the authority and ask that the rent be paid directly to you.  It can work like this:
Your rent is due on 1st of month.  The tenant doesn't pay
1st of month rolls around again and they still don't pay.  They are now technically two months in arrears.  Approach your local authority and tell them.  They then should automatically swap it to you. 
However be aware that they may not be paying the tenant the full rent."


That's good info, At the moment the situation is that I am waiting for a court hearing as the tenant has filed a defence saying  they are poor sick little things and the nasty LL does not do repairs (completely untrue) the have asked for 42 days delay 42 DAYS!!!!!!!!

Ego

theangrylandlord

42 days isn't a random pick...it's the maximum the judge can allow so they will always ask for 42 days.

Jewels

The Angry Landlord is correct!  That is the max they can ask.  However, that does not stop you from getting hold of the local authority and getting their Housing Benefit  money while you're waiting.  You might not get the whole of the rental amount but you will at least get SOMETHING while you're waiting. 
I'd also be checking to see if the tenants are still there.  You don't need to make this obvious or make a big deal out of it.  Are the curtains drawn all day every day?  Is there any sign of life?  I am saying this because if they have moved and told the LA, the LA may not have told you and therefore you'll get no money.
Whatever happens, get onto the LA and tell them that the tenants are two months in arrears and the HB should now be paid to you.  Give them your account details.