Renting to tenants on rent allowance

Hi, I fear I may have been very hasty in allowing a tenant to move into my rental property without having rent allowance sorted. She is now there two weeks, not answering my texts/calls and I have not had a penny in rent from her yet. She has paid her deposit alright but told me from the outset that as soon as I signed the form the rent would be coming straight through. It doesn't appear to be that simple. Can anyone please advise how long does it take for the rent allowance to come through and what if any are the hold ups on this..... What risks have I unknowingly taken on? I want to know the details before I call round to the house to have it out with her. The rent goes 100% towards the mortgage on the house and I have already gone into overdraft while not having the rent coming in. I know I have been stupid, just a sucker for a sad story.

From my experience (Donegal), if the tenant is already in receipt of rent allowance for another property, it comes through straight away.

If she is a new applicant, it can take a long time. I had a tenant in 2009 who was waiting 6 months, however I think this was exceptional and she paid the rent from other sources.

I had a change of tenant in the last couple of weeks and I refused a couple who were interested in taking the property for this very reason, they were new rent allowances applicants who assured me it would take 3 weeks, I didnt believe them.

I think you need to go to see her asap, there is no wasy you can afford to be out of pocket.

Sorry for your trouble. This is a common scenario when a landlord allows a tenant in without taking first month in advance.

Call out to the house with a formal letter of eviction - this is your ONLY option. At least then you will have the wheels in motion to either get your property back or that the tenant will magically come up with the cash from another source. Be nice - it is your fault. Just let them know you made a mistake and cannot afford to keep them living there without any rent. Either it will be too much hassle for them to move and they will pay you - or they will simply up sticks and head off. AT LEAST you have a deposit - you did that right! Offer them BACK their deposit in full if they move out immediately. If they decide to hang out for the full month (or longer) - tell them you will have to use the deposit to cover rent.

You will have no way of knowing if the tenant submitted the application or not - or even if they will get approval or not. You have set yourself up with a squatter - and it could be much worse if you leave them stay. At any time the tenant can just pick up and move house.

Consider this. Tenant finds house where landlord allows them in rent free (while RA application is submitted). Tenant finds better house (they probably looked at several before yours). Other house in better area less rent wont allow them in without RA in advance. Tenant submits RA for THAT house while they squat yours. No way for you to know - RA comes through - Tenant moves into the house they want. Tenant looks for deposit off you.

Shudder !!! I hope it's not that sinister. I couldn't bring myself to ask for a months rent in advance as well as the months deposit, just sounded unreasonable. Anyway... I just got a call there from her saying the guy from the clinic didn't call round on Monday as planned so she went down to him this morning and he assured her he would put it through today and it will be in her account Thursday or Friday at the latest. So hopefully, fingers crossed it'll work out ???? The ony saving grace is it's in a small town where everyone knows each other, her parents and family live down the road and she really really wanted the house before she even saw inside for that very reason. So thanks for the advice... I'll let you know if it comes through on Friday !! Hopefully I'm just being impatient... that's me !!

Rent Supplement applications can take several weeks to process, depending on the area.

Lilia

I hope it works out for you.

Is she moving from another property? This may or may not help - I had someone want to rent a property, she was an existing RA tenant, so i assumed no problem. But the CWO would not allow her to move & turn down her claim flat. Luckily, she had not moved in at that stage.

Ask to see her paperwork so prove it has been sent and request that the payments are made directly to your account.

Good luck

She had been in a rent allowance situation before in Shannon but had a break for a while and now is back into it again so this is why we thought it would be quick. The house is in Ennis and it's fairly clicky ie people know each other etc around the area. Less likely to have squatters in this situation and she has one kid. This is my first time renting the house and thought I was doing everything right.. PRTB second home tax... all that stuff... Sucker.... Anyway Im feeling a bit better now about it and a bit more positive. At least I have a lease agreement signed and a good deposit too..

Tennant called round to the house and handed over the first weeks rent in cash and proof of the DD being set up !! Phew...

Lilia said:

. This is my first time renting the house and thought I was doing everything right..

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Didn't you say on another thread that you gave back the deposit to people who left your house in a mess ?

Lilia said:

Tennant called round to the house and handed over the first weeks rent in cash and proof of the DD being set up !! Phew...

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Good news. That is an option I have given as well - but it can still be a hassle trying to collect week to week. It does demonstrate good faith so hopefully all works out.

You have to treat each tenant like a business transaction to ensure you dont have these problems. That does not mean you cannot be human too.

Bronte said:

Didn't you say on another thread that you gave back the deposit to people who left your house in a mess ?

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Yes, they weren't on rent allowance.