LHA dilemma – stick or twist?

LHA dilemma – stick or twist?

9:12 AM, 29th May 2015, About 10 years ago 24

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I have a tenant that has been living in one of my properties since 2009.

She’s an LHA tenant and has never actually missed a payment in that time, but in the last year or so she has been constantly late with the rent which has caused me a fair bit of stress and wasted time in chasing her. On the other hand the property is spotless and she regularly has the carpets cleaned and takes pretty good care of the place.

I work and have a demanding job and am a bit fearful of a void when this has been a steady source of income for so long and I am grateful to have had zero voids in almost 6 years. The property will probably need upgrading for a new tenant and I don’t fear the cost of doing this too much. What worries me more is that t I have never been able to find a truly trusted tradesmen do do bathroom renovations and the like.

As I know the tenant struggles to pay the rent as it is. I haven’t increased the rent since she moved in and I could probably get another £200-250 a month now, but I’m a bit worried about upsetting the apple cart and finding someone decent to repair / renovate the place if she goes. All of this has led me to just leave the situation as-is. I’m not desperate for the extra rent and a change of tenants will incur extra costs and take up even more of my time.

If I do lose may rag and decide to ask her to leave what is the best approach? Should I simply ask her to leave and issue notice or issue a section 8 (?) on the grounds of constant late payment, or say I wish to move back to the property or that I now wish to raise the rent?

I am a bit fearful that she’ll suddenly become difficult or start neglecting the place if she feels she no longer has any interest in keeping it in good condition. What approach do people think is usually most acceptable to tenants and avoids too much conflict?
I doubt I’ll ever get a professional tenant who will stay as long…

What do y’all think? In some ways I think I’ve been very lucky, but I also feel she’s taking the mick with me a bit these days as I have to chase her every month.

Kaystick


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Puzzler

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9:31 AM, 30th May 2015, About 10 years ago

Reply to the comment left by "tony tony" at "30/05/2015 - 09:01":

Tony tony, Kay can do that herself on the Gov.uk website.

I have a tenant a bit like that, I agree it is a business but we also provide a service. I would let alone unless it gets worse. I agree try to get the LHA part of her rent paid direct to you, then you'll only be down on the top-up amount.

tony tony

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9:50 AM, 30th May 2015, About 10 years ago

puzzler i know she can find out herself like every one else can !

Bricks n Mortar

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11:29 AM, 30th May 2015, About 10 years ago

Reply to the comment left by "Graham Durkin" at "29/05/2015 - 16:29":

Thanks Graham.

Direct payments are not an option. This is not possible everywhere in the country. I tried, even the tenant tried. It diminishes tenant self-empowerment apparently...

I will investigate the surrender form but the AST lapsed years ago so any advice about defining the end of the tenancy would be appreciated.

Bricks n Mortar

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11:34 AM, 30th May 2015, About 10 years ago

Thanks Tony.

The rents have actually been reduced since she moved in due to the cuts. Yesterday I tried to locate the government page I usually check but could no longer find it.

She has 2 kids. The property is a 2 bed house in Hackney, London. I suspect universal credit will force the issue in one direction or the other!

Bricks n Mortar

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11:37 AM, 30th May 2015, About 10 years ago

Reply to the comment left by "Gary Nock" at "29/05/2015 - 18:10":

I like the pros and cons idea. I have them all in my head and the pros are why she is still in situ.

Would be great to do this in pen and ink though. A task for today!

Jay James

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12:25 PM, 30th May 2015, About 10 years ago

Hi Kay / Trying Hard

This link may lead to the LHA rates for your area.

https://lha-direct.voa.gov.uk/search.aspx

Jay James

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12:31 PM, 30th May 2015, About 10 years ago

Is the rent wholly paid by the end of each period (albeit in arrears) ?

tony tony

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16:19 PM, 30th May 2015, About 10 years ago

Reply to the comment left by "Trying Hard" at "30/05/2015 - 11:29":

trying hard if you get your tenant to write a letter that she cannot handle the money because maybe she has a gambling problem and with you telling councill that she is behind with the rent , they will pay you direct i garantee that they will pay you if you put the right forms and letters into them , if they dont and your tenant gets further behind the council will become responsible for the rent that the tenant as spent , due to the fact they should of paid you direct

Graham Durkin

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0:23 AM, 31st May 2015, About 10 years ago

Reply to the comment left by "Trying Hard" at "30/05/2015 - 11:29":

Kay, this is a sticking point with landlords / councils across the country, but it is recognised that if a tenant is having problem with paying their rent via drugs/alcohol/mental health e.t.c / or just not paying, you or your tenant can apply for direct payments to the landlord.Tell the council you will evict then !!!
ALSO LONDON has been given the largest amount of money to help tenants with rent increases & that,s where the DISCRETIONARY HOUSING PAYMENTS KICK IN ,IT THERE TO ASSIST THE TENANT KEEP THE ROOF OVER THEIR HEAD. you have to be struggling financially to get it, but that why its there .
Regarding the A.S.T., you tenant will now be in a periodic tenancy same rules apply both sides to finish the tenacy ,however by raising the end of tenancy surrender form it becomes an agreement that you both wish to terminate the current arrangement in place & should you follow the guidelines there is no problem. Another angle why don,t you lease your house to the council ,you are guarenteed the rent whether occupied or not ,they also undertake repairs ,you just stay away and collect the rent every 28 days (the maximum) your house will be given back in the same condition that you leased having taken photo,s as proof of condition.

Jonathan Clarke

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0:53 AM, 31st May 2015, About 10 years ago

If you are not desperate for the rent then let sleeping dogs lie. But take out £250 cash and chuck it in the rubbish bin every month as that may focus the mind somewhat as to what you are missing out on . 3K a year in the trash can because of your perhaps disproportional fear of conflict and making a bad decision. Thats a small car, a two week holiday in the sunshine or about 150 takeaways. You shy away from doing a short term pain, long term gain strategy and end up with a business malaise.

http://life-happens.co.uk/overcoming-the-fear-of-making-bad-decisions/

Bite the bullet and serve notice. When you get the keys back about 3 to 4 months from now the stress will lift from your shoulders and the month after you will be £250 too the good . Do it
.

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