UK Landlord Forum / Life

We are in the middle of a dispute with our local council regarding housing benefit payments for our tenant.

We have discovered that the original managing agent company was dissolved and  a.n.other company has been claiming/receiving the housing benefit for our tenant.

The council are advising they have paid the sums due as per the Direct Payment Agreement (DPA) but how can this be so?  The company was dissolved and another company/person or agent has been claiming it - odd.  We do not have any details of who they have paid just the values and dates for the payments.

Do we push the council the pay us as per the DPA?  They are advising we need to chase the agents!  What agents?

HELP!

Thanks

Bizarre situation!

I'm not sure what to suggest, because it's not really a common situation. From my experience, the council are useless during times like these because they can't/won't really disclose any useful information for data protection reasons. I'm assuming they won't tell you who is receiving the payments? Did you ask them who they are making the payments to? I would at least check/ask if there has been a change in receivership, or if they're still paying the same agent that they have always paid. I think they should be able to disclose that much.

It doesn't make sense how another company can start claiming the money! Are you sure the agent is completely stopped trading? Because they could have just closed their branch, but still legally a company, and that's how they're able to continue claiming the money.

Without more information, this is tough. Not sure if anyone else will be able to help!

What is the form of your agreement with your tenant and the council.

If the agreement is for the council (or the tenant) to pay you all or part of the rent.
They're not doing that.

If the agreement is to pay your agent,
they're not doing that.

If the agreement is loose, or unclear,
they might be honouring it.

Devils in the detail.

The saga continues ........

Original agent (a) found tenant, issued and signed both the TA and the DPA with the council.

Subsequently, agent (b) issued and signed a fraudulent TA on our property and the council have been paying them the HB.

The council have never checked the 2nd TA, we never knew it existed or that they were paying agent (b).

Agent (a) has now gone bust and we are missing payments.

What a mess.

We don't have any agreement with agent (b), and don't know who they are, how much they were paid or when?

Do we go after council (they accepted another TA without our knowledge) or do we try to track agent (b).

The joy - any help welcome.  Thanks.

What is your relationship like with the tenant?

Can you arrange a visit to the tenant and get them to call the council and arrange the correction of the rent payment details going forward?

Then you can go about contacting the council for correction of the back pay, although tbh it looks doubtful as the council have paid per the paperwork they have, they won't be likely to pay twice. 

Maybe the tenant could request a copy of the TA signed by agent b which could provide you with the information to reclaim it?

If the money hasn't come to you, the tenant could be facing eviction for non payment of rent, that alone should be incentive enough for them to help you out?

If I've followed the sequence of events properly, you simply need to claim the missing rent from the council.
If your agreement with them was that they'd pay you rent, you have a relatively clean case.

If the council have been paying someone else for a fraudulent agreement, that's nothing to do with you at all.
That's the council's problem entirely, so you can ignore it.

If the agreement was that the tenant would pay the rent, and he had an agreement with the council to pay it,
your tenant owes you the money (nothing to do with you where he got it).

Write to whoever owes you the money (recorded delivery) highlighting exactly what they owe you.
Indicate that you require payment in full by a date (28 or 30 days from the letter date, always be reasonable).
Confirm that if you do not receive payment in full at that point ("because time is of the essence in this matter, which is causing me hardship" - if it isn't miss out the last bit) you will take action to recover without further notice.
The small claims court if they don't pay or contact you and look like they're going to.