Tenant Rent Allowance submission

[TurkeyBurger]

Hi folks,

Hoping someone has some experience of a similar situation to the one I have found myself in! I'm a kind of accidental landlord, I have one house rented out, looked after by me with no agents and all registered with PRTB, etc.

I'm making a loss on the property (about €150 per month) but it is being well looked after by the tenant (who is the first tenant) and the neighbours are not being annoyed so overall, not too bad.

However, in August the tenant lost his job and sought Rent Allowance. I completed the forms (Rent Supplement - SWA3) with him and they were submitted to Social Welfare, by him. I have subsequently completed this form a further 2 times as the original was lost on once occasion and on second occasion the Social Welfare staff informed him that he was paying too much in rent. I gave him a letter stating most of what is written here and that I am not in a position to reduce the rent. (Comparable properties in the area are renting for a lot more than this house. For the same price, he could get a 1 bed apartment which is not suitable for his family.)

This week, he has told me that Social Welfare have again come back to him to tell him that he is paying too much in rent and have again refused him Rent Allowance.

Tenant accepts that rent is fair (he knows he has a good deal and doesn't want to move out) and I don't particularly want the hassle/cost of replacing him. The options that I see myself with are:

- Is it possible that Social Welfare would insist on this type of thing? Surely they can look at Daft.ie as quickly as I can and compare rents in the area and realise that he is not paying too much rent?

- Lie to Social Welfare. Complete the forms with false information which will not match up to our 1 year fixed term lease to keep Social Welfare happy. Tenant will then still continue to pay me the sum we originally agreed upon. Obviously, not my preference. I have tried to do everything above board and don't want to undo that.

- Issue tenant with new lease. Possibly one for a reduced amount for the house and we will have ourselves a supplemental lease for the use of the garden and shed (or something like that). As far as I am concerned, he can then show the house lease to Social Welfare. If this is done, has he any hold over me for breaking the original lease?

Sorry for all of the info, I'm hoping someone has had a similar experience or could direct me to Social Welfare, Citizens Information, Threshold? (Not sure who to even check this out with - probably all of them!)

 

[twofor1]

This week, he has told me that Social Welfare have again come back to him to tell him that he is paying too much in rent and have again refused him Rent Allowance.

Have you looked at the maximum rents allowed for your tenants in your area.

If the rent charged exceeds these limits it would explain the refusal.

http://www.welfare.ie/EN/Topics/Budget/bud09_apr/Pages/MaxRentLimitJune2009.aspx

 

[TurkeyBurger]

Thanks for this, yes I've looked into these limits and Tenant has suggested that he will top up the Social Welfare payment himself.

But what I'm wondering is, do Social Welfare actually want him to go and take out a lease on a different property, maybe something smaller? Do they maybe not want to fund his current lifestyle? (I'm just guessing, I've never had any dealings with them before?)

 

[gipimann]

In order to qualify for Rent Supplement, the tenant must rent a property under the maximum rent limit for the area he is residing in.

Rent Supplement will not be granted even in situations where the tenant agrees to top up the balance to a rent that exceeds the limit, because this could cause financial hardship to the family.

 

[TurkeyBurger]

That's fantastic, thanks for that gipimann.

Anyone know what happens in the case of the existing lease agreement? If tenant is forced to move out to obtain social welfare rent supplement, they still break the lease agreement which has 5 months left to run. I don't particularly want to cause the poor bloke any hardship but I don't want the cost and hassle of re-renting it so plan on not returning the deposit. Sound fair enough?

 

[sickofeire]

yes, the local authority generally lean on you to move out.i am having it happen now with a landlord who wants to increase rent, is being very difficult with repairs in the house. now the local authority tell me if he raises rent i will have to move out as they will not pay it. i think it is stupid as the HSE have just bougt my next door house for a family from southill and they are wrecking the place. that i dont understand.