tenants change of circumstances

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  • #45840
    Paul Owen
    Participant

    Hi All

    Advice wanted!

    Just been informed bu the local council that my tenants housing benefit has ended as of 24.01.13.

    This is a joint tenancy where one receives a one bed rate, and the remianing tenant ( age 33) receives the shared room rate.

    the tenant receiving the one bed rate has left, without notice.

    The remianing tenant says she has a brother in law( age 22) who would move in imediately, if i am happy!

    what is the best way to maximise the rent here?

    #129077
    David Morrison
    Participant

    As they are both under 35, I think the only thing you can do is charge 2 * sharers rate.

    I’d love to know if there is a better way as I’ve been contacted today by 2 friends who are aged 31 and 29 who want to share my house and I had to decline them.

    Cheers
    David

    #129125
    peterdelamothe
    Keymaster

    Yes..thats it. You could not even suggest they had a shared family as JT’s because they are under 35.

    #129833
    Paul Owen
    Participant

    Ok understood!

    What if the remaining tenant then introduced two new tenants under 35 wanting to share.
    The existing tenant would notify HB office of change of circumstances, and two new tenants had moved in with her.

    Is this a case for the ‘2 + 2’ where i have 2 named tenants on the AST and they inform the housing benefit they have a lodger ( tenant number 3)and remove the subletting clause from the AST?

    Sorry i haven’t grasped this so well, as i haven@t done this before and want it right from the outset, so all advice and help eagerly awaited!

    #129839
    peterdelamothe
    Keymaster

    It certainly is an idea. So long as the lodger is not related to the two named tenants, then the tenants will be entitled to the two bedroom rate each. The third person does not need to be a lodger…just someone who is staying there until they can sort out their own place. A non-dependant.

    So the existing tenant would advise the Council.

    a new joint tenant has taken over from x. In addition, a third person has moved in but is not on the tenancy. They are not related to me or the other tenant but are living here until they can find somewhere else to live. Their income is x.

    #129841
    david bradley
    Participant

    Yes I agree, 2 x 2 bed rate with the third person just as a named non dep on both claims.

    #129854
    jmalls
    Participant

    There’s also a deduction of income to take into consideration.
    Because the one of the 2 tenants will be claiming income from the sub tenant, he will have to give up part of his HB around £20 I think.

    #129930
    david bradley
    Participant

    No you dont need to make him a lodger, just a person living in the house and name them as another adult. simple!

    D 🙂

    #129983
    Paul Owen
    Participant

    Thanks guys for your help.
    If I take on two tenants now, by just. Introducing one extra tenant at the shared room rate!
    Then can I change the AST if we find a third tenant, as the tenants. Circumstances will have changed during the fixed term of the tenancy?

    #130015
    david bradley
    Participant

    No, because ASTs are legal for minimum 6 months, you wouldn’t be able to change it until 6 months have passed. D

    #130016
    david bradley
    Participant

    No, because ASTs are legal for minimum 6 months, you wouldn’t be able to change it until 6 months have passed. D

    #130017
    david bradley
    Participant

    No, because ASTs are legal for minimum 6 months, you wouldn’t be able to change it until 6 months have passed. D

    #130128
    Paul Owen
    Participant

    Thanks for all the help and advice so far!

    I have another situation, where i am trying to maximise the rent for an existing tenancy;

    The scenario;

    An existing long standing tenant
    Mother an two sons, now aged 18 and 19.

    The mothers housing benefit has changed, due to non- dependent deductions.
    Both sons are living with her, she was receiving the two bed LHA rate, but now this has reduced by £22.90 per week or £99.00/month due to the two non-dependants being present. Both sons claiming JSA.

    can i now renew the AST( as it has long expired) to the 2 x 2 bed rate, naming the mother and one son on the tenancy with the third son named on the HB claims for the mother and son named on the AST, or will i just go for the 3 bedroom rate?

    ALL help and advice eagerly awaited!

    #130447
    peterdelamothe
    Keymaster

    Well… the obvious answer (to me anyway) is to think about giving them all a tenancy. Then you could get one times the one bed rate and two times the shared rate depending on the property. That is a bit risky….the Council could refuse to pay the former non-deps and they may have to appeal.

    Also you say the tenant was getting the two bedroom rate? Do you mean the three bed? Bit difficult to advise without knowing the property size and number of bedrooms etc.

    #130449
    Paul Owen
    Participant

    Hi Peter
    To clarify;
    I was charging the Two bedroom rate as it is a 2 bedroom flat. i now know i could have charged the 3 bed rate due to the family make up.
    Now the Housing benefit has been reduced due to non-dependent deductions, so i need to maximize my rent by issuing a new tenancy agreement.
    What do you suggest i do to maximize my rent here?
    Also one AST is preferential so that i don’t become liable for Council tax?

    Thanks!

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