A benefits expert has urged landlords not to succumb to tenants’ demands to pay them off after building up months of rent arrears.
One landlord on the LandlordZONE forum explains how her tenant is not paying rent in the hope of being “rescued” and rehomed by the council but is unsure whether legal action is the right course. She says: “I am put off by the timeline of the seven to nine months’ process. I offered him £1,000 to move out and he started asking from £10,000 down to £2,000. I felt I was being held to ransom, so I declined.”
Bill Irvine from UC Advice & Advocacy (pictured) says that’s a wise decision. “I wouldn’t pay a tenant that amount, but I can understand landlords’ frustration,” he says.
He advises them to act immediately if a tenant falls into rent arrears – or potentially risk losing thousands of pounds as they struggle to navigate a broken payments system. There is nothing in the upcoming Renters’ Rights Bill to improve the “institutional problems” within the DWP, courts, or local councils, warns Irvine, who believes the situation will only get worse.
Complain
“Landlords refused Direct Payments should complain to DWP practice managers as they can apply to get the money paid directly to them after as little as one month of non-payment, based on rent liability dates” he tells LandlordZONE. “They shouldn’t listen to tenants telling them they will sort it out as often this is a ruse.”
Irvine believes problems with Universal Credit payments are particularly hard for private landlords and are only being exacerbated by hold-ups within the court system, as well as councils telling tenants to stay put until bailiffs arrive otherwise they won’t be treated as a priority – regardless of whether they’re paying rent or not – and the fact the DWP only pays about 5% of eligible ‘housing element’ payments direct to landlords.
Refused
“One landlord who approached me recently was owed £30,000 of rent arrears because the DWP persistently refused to pay him the money, due to unvalidated disrepair claims by his tenant,” he adds.
Using Section 8 means landlords can pursue claims for rent through the small claims court, however wily tenants will bring the debt down to less than the requisite two months, negating court action, Irvine warns.
UC Advice & Advocacy is running two courses on Universal Credit and Benefits Update in October and November with the NRLA when Irvine will address many of the common issues encountered by landlords.
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