17:32 PM, 6th August 2013, About 11 years ago 113
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This week I have been stung by my first experience of the benefits cap.
One of my tenants Housing Benefit has gone down to £30pw from £159pw.
This is the cap where the Government are limiting families to £500pw of maximum benefits and all councils will have it by Sept 2013.
My tenant now gets £310 Child Tax Credit, approx £90 Child benefit & £10 Income Support with loans taken off. With Council Tax & the £30HB, we are about £500. A lot of money I know, but when they’ve had if for years, they’re used to it.
My tenant cannot understand at all that she has to pay any rent out her own pocket – so isn’t going to – so she says.
I’ve given her notice in case things get worse, as mortgages don’t grow on trees.
I don’t want her to go and she she doesn’t want to go either!
She rang me up every week for a year to get a house off me, so we are both valued to each other.
I have contacted Shelter, MP’s, Govt, CLG, Advice Centre, the Council Housing benefit and more and none of them seem to know anything whatsoever about direct payment to a Landlord when tenant is in arrears as a result of these circumstances.
The Local Authority is now saying no provision for direct payment to Landlord when in arrears.
As we all know Universal Credit are talking about direct payment to Landlord because of the big arrears they’ve been getting in trial areas. And as we all know, direct payment when LHA was introduced in 2008 was a no no,until we all moaned enough that is. Now getting direct payment is like taking candy from a baby.
However, I’m hitting a brick wall with direct payment under this new benefit cap.
I thought I was a benefit expert until this week. I’m 99% sure they will do something eventually, when enough people get evicted and moan enough, but I and many others need something positive to happen now.
My Local Authority are not interested, they seem to think it’s funny that supercool Landlord Mick Roberts is now only getting £30pw when he was getting £159pw and in their eyes, lapping it up.
My tenant is still allowed £159pw under 4 bed LHA rate rules, but it is the benefits cap which is limiting her housing benefit payment to £30pw. Clearly this is the first thing tenants lose when going over the £500pw threshold.
Govt needs to wake up because they haven’t got the houses for for these tenants and wherever this tenant ends up she will only get £30pw towards her rent, so will be in the same boat with any Landlord.
The big families are no longer attractive!
Jeez, I wanted this to be a quick post, but if any experts reading this know more than me and can help, it would be very much appreciated.
Regards
Mick
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Sign Up17:51 PM, 12th August 2013, About 11 years ago
Spongers ! Send them to the colonies !
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Sign Up18:02 PM, 12th August 2013, About 11 years ago
Reply to the comment left by "Mick Roberts" at "12/08/2013 - 17:25":
Ahh! Mick you're a hero!!!
I just could not be bothered to do what you do
Every council area needs about 50 Micks!!!
They don't grow on trees though.....................................more's the pity as far as the councils are concerned.
I do sense though that that even you are being worn down by the continuing issues you have and we haven't even got to UC rollout yet.
I do see you getting out of HB in the next few years
After all attending every 6 months to professionals is far preferable than what you do with the HB lot....isn't it!!??
Mark Alexander - Founder of Property118
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Sign Up18:07 PM, 12th August 2013, About 11 years ago
Reply to the comment left by "Mick Roberts" at "12/08/2013 - 17:25":
You need to take a closer look at my business model Mick. My tenants stay for years too, and not all of my properties are posh either.
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Mick Roberts
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Sign Up7:29 AM, 13th August 2013, About 11 years ago
I am being warn down-Only because I’ve been doing it 15 years & for years had enthusiasm & drive & liked sorting problems out.
And for 15 years I’ve built up all top HB contacts, top managers etc., got things solved. But now with the cutbacks, them top people are being moved about as well, so got to start again, whereas before quick phone call, I could get anything sorted.
And I’d knew virtually everything about HB, bought changes in to councils, recommendation to Communities & local Govt, got the odd thing changed through moaning & pressure. And now Benefit caps & UC coming in, I know diddly squat & feel like got to learn all over again-And where’s my contacts gonna’ be in DWP? Hello, anyone there? Call centre abroad perhaps?
So yeah, I may get out, follow some of your lots examples, but keep a few high class HB if that’s the right word.
But to be fair, some of me houses, I han’t been in for 10 years, rightly or wrongly some of u may disagree with that, some may take zero time off me once a year whereas others may take 15 hours one week, then few weeks later, take another few hours.
Is that worse or better than professional leaving every 6 months? Because tenant leaving to me is like £500 in time. Even though I have someone ready to go straight in, the admin & time lost equates to £500. Than me keeping HB tenant for 10 years who brings the odd hassle?
Mark, u could have photo submission page on here, I took some photo’s yesterday, lad moved in 3 months ago, his Mam’s been with me 5 years, he had about 6 new doors, 2 of em holes in, that does your nut in-I took the photos-Some of u would have been horrified if it was your house, I just took the photo’s to show his Mam when she starts refusing to pay.
I do need to take closer look at your business model, I’m always open to idea’s.
Jonathan Clarke
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Sign Up9:11 AM, 13th August 2013, About 11 years ago
I`ve just had the post through . A 4 bedder with mum and her 6 kids on £950 pcm being knocked back by the cap to only 50p yes 50p a month. I can take a joke but thats just plain silly I thought i was meant to get 3 mths notice but wham bam it kicks in now.
I`m just wondering where the council will house them in 2mths time when the Sec 21 kicks in. Still look on the bright side . Its a big unit and divided up properly room by room I will get maybe 6 x 300 for it so that`s £1800. That`s twice what I have been getting. I guess I maybe should of got my act together and done this before . I `ve been getting lazy
Oh well lets get cracking . Every cloud has a silver lining
Mark Alexander - Founder of Property118
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Sign Up12:50 PM, 13th August 2013, About 11 years ago
Reply to the comment left by "Jonathan Clarke" at "13/08/2013 - 09:11":
Hi Jonathan
Please take a look at this article, it will enable you to shave two months off the potential for rent arrears if/when other unexpected issues like this crop up again. If you were previously aware of this strategy, did you have a reason for not applying it, and with the benefit if hindsight would you still make the same decision?
Please see >>> http://www.property118.com/serving-a-section-21-notice-after-tenancy-agreement-has-just-started/41878/
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Mick Roberts
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Sign Up17:18 PM, 13th August 2013, About 11 years ago
Reply to the comment left by "Jonathan Clarke" at "13/08/2013 - 09:11":
Aaaahh, it's disgusting Jonathon. Someone should be held accountable. I think I got about 7 days notice. Where are your houses?-I do forget everything unless wrote down-It's an age thing.
The Nottingham ones are apparently coming in end Sept & I've heard NOTHING!
Yeah, I've already got new people for my 4-5 bed if she don't pay. New people KNOW about the cap, she has 6 kids too, but has maintenance from ex fella, also is spending I think she said £70 a week on bus fares from where she is now to the school where my house is, so she has it all worked out.
Good idea that 2 month notice thing, but I think with mine & Jonathon's tenants who stop years, we'd be scaring 'em off at start. Some HB tenants aren't the brightest. And my current Nottm one been there for 5 years, I have heard from solicitor in the past, that can go against u if Judge in Court sees tenants with all these notices tenant holds up, if u keep issuing them.
Mark Alexander - Founder of Property118
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Sign Up17:29 PM, 13th August 2013, About 11 years ago
Reply to the comment left by "Mick Roberts" at "13/08/2013 - 17:18":
Aha, I reckon that's a self limiting belief Mick, it's an invalid concern held by many landlords resulting in them acting illogically through fear of loss. I can assure you that my tenants stay with me for much longer than the average tenancy term. The s.21 doesn't scare them off at all. Remember, I also quiz them up from about staying long term, I explain to them exactly why I issue s.21 early on and also discuss the Deed of Assurance if they are the slightest bit worried about me kicking them out through no fault of their own. It works for me 🙂
You only need to issue a s.21 notice once unless you start a new AST. What makes you think otherwise?
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Mick Roberts
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Sign Up17:47 PM, 13th August 2013, About 11 years ago
Reply to the comment left by "Mark Alexander" at "13/08/2013 - 17:29":
I'd heard (& this happened to me-Only one tenant had to start the court procedure), if section 21 was getting way over 4 months old, so end date 3 Sep & come 1 Nov and continuing, tenant still there, my solicitor said could be deemed as new tenancy started or quite happy to keep tenant there for longer, as not done anything about that notice that ran out 3 Sep. ie. too long had passed. And I am not an Legal Eagle like some of u guys, I have to duck & dive with my HB tenants, as they don't understand legal jargon.
Mark Alexander - Founder of Property118
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Sign Up18:08 PM, 13th August 2013, About 11 years ago
Reply to the comment left by "Mick Roberts" at "13/08/2013 - 17:47":
That's absolute rubbish Mick, get yourself a better solicitor mate!
If you want to learn a lot more than most solicitors know about possession law read this thread, especially the last dozen or so posts >>> http://www.property118.com/can-i-take-a-locksmith-with-me/42232/comment-page-5/#comment-25871 <<< there are some very knowledgeable people posting on that thread, I've been corrected on a few things myself. .