Rinlgley group logo
  • Home
  • Who We Are
    About Us Our People Awards Savings for Clients Results for Clients Green Management Strategies Market Overview Leasehold Reform Campaign Money Back Guarantee
  • What We Do
    • Block Management
      • Block Management Overview
      • for RTM Companies
      • for Freehold Management Companies
      • for Resident Management Companies
      • for Estates of Houses
      • for Freeholder Investors
      • Ground Rent Collection
      • How to Change Agent
      • Block Management Packages
      • Can't Afford an Agent?
      • Legal work & Tribunals
      • Section 20 Major Works
      • Ringley's Top 10 Tips
      • Staff on Site
      • Moving or Buying?
      • Report an Incident
    • Asset Management
      • Asset Management Overview
        • Asset Management Overview
        • Stabilised Assets
        • Project Monitoring
        • Mobilisation & Lease up
        • Asset Managers TechStack
        • Accounting & Reporting
        • Brands & URLs for sale
        • ESG Consultancy & Implementation
        • UK Build to Rent
        • UK Later Living
        • UK Coliving
        • UK Student Housing
        • BTR Smart PropTech
        • BTR Strategic Marketing
        • BTR Resident Experience
        • BTR Tenancy Management
        • Asset Management Clients
        • Site Finding/Digital Land Search
      • Law
        • Legal Services Overview
        • Our People
        • Recommendations
        • Right to Manage
        • Lease Extensions
        • Freehold Purchase
        • Absentee Freeholder
        • Court Appointed Manager
        • Conveyancing
        • Service Charge/Rent Arrears Recovery
        • Company Secretary
      • Valuation
        • Valuation Overview
        • Loan Security
        • Company Accounts
        • Lease Extensions
        • Freehold Purchase
        • Rent Reviews
        • Development Valuations
        • Insurance Valuations
        • Expert Witness & Litigation
        • Tax, Trusts & Accounts Valuations
        • Trading Business
        • Compulsory Purchase
        • Residential Valuations
      • Engineering
        • Engineering Overview
        • EWS1 Consultancy
        • Asbestos
        • Contract Administration
        • Fire Assesment
        • Homebuyer Survey
        • Building Survey
        • Schedules
        • Party Wall Matters
        • Principle Designer
        • Disability Access Audits
        • Small Building Works
      • Finance
        • Finance Overview
        • Get Accounts Quote
        • The Law & Property Accounts
        • Industry Update
        • To audit or Not?
      • Plant & Facilities Management
        • Plant & Facilities Management
        • Fire Door Inspection APP
      • Site Staffing Solutions
      • Leasehold Guidance
        • Leasehold Guidance Overview
        • Right to Manage
        • Buy Freehold
        • Court Appointed Manager
        • Absentee Freeholder
    • Insights
      Property Management Articles Property Management Blogs Rental Market Blogs Customer Comments FAQ - Ask Our Experts
    • E-books
    • Portal Login
    • Get In Touch
    • Clear Filter
    • Property Blog INDEX
    • PlanetRent Blog

    Four tips for dealing with tenants on Universal Credit


    Responsive image


    Landlords may have to get used to letting to tenants that are claiming benefits

    Many landlords actively opt not to let their property to anyone who is receiving state benefit for fear they may end up in rent arrears. It is not strictly illegal for landlords to state they do not wish to let to tenants claiming Universal Credit - although it may be found to be discriminatory should a tenant decide to pursue their case in court - and many do exactly that. But those days may now be over.

    Almost one million people have applied for Universal Credit since the government closed non-essential businesses around the country and urged people to stay at home. This means that most landlords, who have never previously let their property to a tenant who is claiming benefits, now will.

    So what
    should landlords who find themselves in this situation do?

    Caridon Landlord Solutions which specialises in providing advice to private landlords, letting agencies and housing associations on Universal Credit and Housing Benefit, offered this advice in Landlord Today and it may be helpful to take note of it.


    • Communicate with your tenant and support them as much as you possibly can.  If they are having to apply for Universal Credit, it is most likely because they have lost their job or had a significant drop in income. They will be concerned they could also lose their home.

    • Where possible, consider a rent reduction to meet the housing element of Universal Credit. Some rent to help cover a mortgage is better than nothing, or if at all possible, offer a rent holiday.

    • If your tenant has had to apply for Universal Credit because of COVID-19, they will require a letter from you verifying the rental amount, the address of the property they reside, and when the tenancy commenced. This will help them to qualify for the housing element of Universal Credit which will go towards covering their rent.

    • Work with your tenant to establish key dates, such as the tenant’s Benefit Assessment Period (the date their entitlement begins) so that you can see how it falls in line with the Tenancy Agreement.

    Many tenants prefer to have the housing element of Universal Credit paid directly to the landlord so they can manage the rest of their finances themselves. This is called an Alternative Payment Arrangement. Landlords should discuss this with their tenants and if in agreement, fill out a UC-47 form to apply for this. If the tenant is already in arrears, the landlord can also apply for Third-party Deductions to reduce them. This means an additional amount is taken monthly from the claimant’s personal allowance

    To clarify the rules on this, earlier this month the Department for Work and Pensions (DWP) published updated guidance for landlords with tenants in receipt of Universal Credit. The guide explains what landlords can do to help tenants prepare for their move to the single Universal Credit benefit payment and make rental payments directly to their landlord themselves. It also explains what support is available for tenants who may need help moving to the new system. Click here to read the guide and find out more.

    Sherrelle Collman, managing director of Caridon Landlord Solutions, says thousands of landlords who have no previous experience of the benefits system, will now have tenants on Universal Credit and many will be anxious because of the criticism it has received since its introduction. However, she adds: “The good news is that more resources have been deployed to local authorities to help claimants, and measures such as immediate access to Advance Payments, increases to Universal Credit and raising the Local Housing Allowance rate from April, are being put in place".



    07/04/2020
    Author : Mary-Anne Bowring

    Social
    Facebook Linkedin Twitter Blogger

    Subscription

    Keep up to date

    (Weekly, fortnightly or monthly)


    To find out more what we do with your data, please read our Privacy Policy


    Insights, Blogs, Research, E-Books

    Landlord blog bg

    Landlord blog
    Read landlord blog
    Property blog bg

    Property blogs
    Read property blogs
    Articles bg

    Property articles
    Read property articles
    E book

    E-books
    Read E-books
    Facebook footer Instagram footer Linkedin footer Twitter footer
    Facebook footer
    Instagram footer
    Linkedin footer
    Twitter footer
    • Ringley Group
    • About us
    • CSR
    • BusyLiving
    • PlanetRent
    • Fire door inspection
    • Talk to us
    • Careers
    • Ask a Question
    • Insight
    • Articles
    • Blogs
    • Subscribe
    • What we do
    • Asset Management
    • Block Management
    • Facilities Management
    • Property Law
    • Surveying / Valuation
    • Building Engineering
    • Financial Services
    • Managing Agents
    • Block Management Locations
    • Co-working
    • Offices
    • London
    • Ringley House
    • 1 Castle Road
    • London
    • NW1 8PR
    • T: 0207 267 2900
    • Manchester
    • 11 Swan Street
    • Northern Quarter
    • Manchester
    • M4 5JJ
    • T: 0330 174 7777
    • Cardiff
    • 122 Bute Street
    • Cardiff Bay
    • Cardiff
    • CF10 5AE
    • T: 0330 174 7747
    • Email: solutions@ringley.co.uk
    • Emergency line 1: 0207 428 2056
    • Emergency line 2: 0207 267 2900
    • Report incident
    Privacy Policy
    Ringley Staff
    Ifsm Irpm member New iso Arla licensed Ombudsman services Rics vertical Gbc

    All content © copyright 2022. Ringley Limited. All Rights reserved. Ringley Limited, incorporated and registered in England and wales. Registered office: Ringley House, 1 Castle Road, London, NW1 8PR. Company No. 03302438
    Terms of use | Privacy Policy | Modern slavery act | COVID-19 risk assessment