Universal Credit issues – How do I claim rent arrears?

I don’t know if it’s different in Scotland but in England you can apply for direct payments if tenant is more than two months in arrears or one month in arrears that has accrued over several months. As part of the online application you can also request a deduction from their UC to pay off arrears. It’s only about 2.5% of the monthly housing allowance, but it’s better than nothing. DWP might not be able to talk to you to confirm if they are or aren’t in receipt of benefits from them but you can make an educated guess if you think they are and it’s worth applying. I recently applied and was granted direct payments but not arrears but I think it was one criteria for arrears wasn’t quite there. I just reapplied as soon as it was rejected and it went through on the second application.

Here's the online form if you didn't know already.

https://directpayment.universal-credit.service.gov.uk/questions/type-of-payment

It sounds like you've already served an eviction notice. Ensure it is correctly served under Section 8 or Section 21 of the Housing Act 1988, as appropriate. Although you mentioned difficulties with Universal Credit, there is a system for landlords to receive payments directly. You can apply for an APA to have rent paid directly to you if tenants are in arrears for at least two months. Fill out a form UC47 and provide evidence of rent arrears. Note that UC does not guarantee approval, but persistent follow-ups may help.
If the tenants owe you money, you can take them to small claims court for the unpaid rent and damages. If the tenants still don’t pay, you can take steps to enforce the judgment like Warrant of Control: Employ bailiffs to collect the debt or Attachment of Earnings Order If they find work, a portion of their earnings can be directed to you. And the last one is Third Party Debt Order: If they have bank accounts with funds, you may recover money directly. One of decision can be mediation, but I am not sure if it will work there.

Reply to the comment left by Geoff1975 at 24/07/2024 - 16:47
Janet had said she had tried to get the payments made directly to her but was unsuccessful and I know from experience UC will not talk about the tenant due to data protection...all I managed to squeeze out of them after the four or fifth phone call is that the tenants circumstances must have changed.

Reply to the comment left by Lina Borzenkova at 25/07/2024 - 11:14To take tenants to a Small Claims court (under £10,000 owed) or a Money Claims court (over £10,000 owed) means you need their present address. These processes take around eight months so if the tenant has been served with an eviction notice and moves out, these papers may simply go to the now empty or with a new tenant, rental address. You will then have to use a trace service to track down the ex-tenants new address and pay for the address to be changed (which will take another couple of months) on the MC court papers and sent to their latest address. And if they have been placed in 'temporary' accommodation by the Council they never be able to be traced

Reply to the comment left by Throwing in the towel LL at 15/08/2024 - 11:39
no point chasing benefit tenants for debt. They will never pay.

Put this one down to experience and simply don't rent to benefit tenants going forward that rely fully on the state for their housing costs.

It really is as simple as that. Call it what you like, I call it a qualified business assessed risk.

Benefit tenant in today means you could be stuck with them for life. Remember - you are not a social provider!

Reply to the comment left by Reluctant Landlord at 15/08/2024 - 13:33I appreciate your reply but unfortunately 'good' tenants often don't stay like that. Some years ago I had three lovely young ladies all with good jobs and references, etc in three separate two bedroom apartments, but within a couple of years all three had had babies, given up work and claimed benefits and then all had second babies. So with their benefits 'capped' I could not put up the rents. One fortunately left of her own accord, another who has turned into the tenant from hell - damaging my property, anti-social behaviour, she won't allow me access, and owing me ten months rent, with me having to evict through the court route using an 'expert' which has cost me £1,500 and her delaying the process with ridiculous 'defence and counter claims'. I'm still paying mortgage, service charges & ground rent so in effect I am now actually 'paying' for her to live in my property. And the third tenant now showing signs of future problems. I'm in my seventies now and just want to sell up and get out as I haven't got the strength for all this aggro. And like you say, I'll never get back the thousands she owes me

Reply to the comment left by Throwing in the towel LL at 15/08/2024 - 14:35
I appreciate this can happen, and any tenant can have a change in circumstance. Its key more than ever the LL keeps a close eye on this.

Personally if the rent needed to be increased, then even if their ability to pay was capped, you should have done this anyway given what the outcome was inevitably going to be at some stage?

Easy to say now I know, but signs were there, but like us all you want to still give people the benefit of the doubt and help where you can.

Sorry you have had to go through this. Make sure you give T3 notice now while you still can. S8 & S21 while it is still an option. If you are looking to sell, start this action sooner rather than later and get vacant possession to make it more attractive to potential buyers. Good Luck.

Reply to the comment left by Reluctant Landlord at 15/08/2024 - 16:41
Thank you for your reply, and yes I have done myself (and probably my tenants) a disservice by not putting the rent up as now they can't afford to move into any other private rental property in the area and Birmingham has no social housing available and the council just tells them to stay put until the bailiffs come then they place them in 'temporary accommodation' where they may be for years which is terrible for their children. Our council in now bankrupt and having to sell off it's assets and yet there are still massive bills from accommodating people in hotels. It's all a terrible situation that no-one benefits from and with private landlords being penalised left right and centre it will only get worse. I am selling up as soon as possible.