HAP obligations for Landlords

Manion

I’ve been approached to consider a HAP tenancy for my property but it’s somewhat difficult to figure out what additional obligations or restrictions this places on me as a landlord, if any. Can any one advise?

dennyk

This booklet provides a good overview. The main things to keep in mind would be:

- The council pays rent on the last Wednesday of the month in arrears, rather than the more typical arrangement with tenants paying rent on the same day of the month in advance, so you'd need to adjust your cash flow planning accordingly.

- HAP legislation requires inspection of rental properties to ensure they meet the minimum standards. Technically all private rental properties are subject to such inspections, but in practice due to lack of resources the councils have historically only inspected HAP properties in many cases. Contrary to popular belief, there isn't a separate "HAP standard" that your property would need to meet, just the same standards as any rental property, but having a HAP tenant means you will end up with an inspection.

- You'll have to provide a tax clearance certificate and keep the RTB registration up to date; if you don't, your HAP payments will be stopped. Presumably this shouldn't be an issue for you, though.

- If the tenant stops paying the council their contribution, the council will withhold the HAP payment.

The other thing to keep in mind is that it is illegal to refuse to rent to a particular tenant just because they are in receipt of HAP. You're not required to rent to a particular tenant just because they are getting HAP, of course, but should you decide not to rent to this tenant for some other perfectly legal reason, you will want to make sure that nothing could give anyone the idea that the reason for your refusal was actually due to their receiving HAP.

antimatterx

https://www.boards.ie/discussion/comment/122028539#Comment_122028539

Sounds like hassle.

Manion

The only piece standing out is the payment in arrears. I understand from the booklet that HAP tenants need to be approved, how long does this take. I won't reject a HAP applicant but I want hold the property off the market for one either.

Gmaximum

They’ll usually have a letter confirming eligibility for HAP and once they secure a rental property there are forms to be completed and sent off for approval. They can move in and pay rent until the HAP kicks in, obviously they need to be in a position to afford this

Dav010

When you say you have been approached, is that from a sitting tenant or a prospective tenant?

If it’s a sitting tenant, the terms of an existing tenancy do not change with HAP. HAP is an agreement between the LA and tenant to pay rent, not between the LA and you, the LL. So rent must continue to be paid in advance, explain this to your tenant, they can use the HAP payment for the following month, but rent must continue to be paid in advance. In effect, this means they pay one months rent in advance, and get it back at the end of the tenancy when the last HAP payment is received. You cant refuse HAP from a sitting tenant, but it does not change the tenancy, only where the money comes from.

If its a prospective tenant, you just consider the HAP tenant the same as anyone else, you cant discriminate, but neither are you obligated to accept them.

Manion

Perspective tenants, The property is more than required for their family and at a higher rent than they where previously approved for. I understand there is a possibility they won't be approved for HAP on this basis. I do t want to get into holding the property off the market for these tenants if it's going to take a long time to be approved.

Dav010

Have you offered it to them already?

Manion

No.

mondeoman72

The main bugbear I am aware of is that if the tenant does not pay their bit to the council, the council stops everything to you. It's just tough luck for you. "Not their problem"

Dav010

https://www.boards.ie/discussion/comment/122029320#Comment_122029320

I think that is no longer the case.

Dav010

https://www.boards.ie/discussion/comment/122029192#Comment_122029192

If you wouldn’t hold the property off the market for anyone else, I’m not sure why you should with these prospective tenants just because they are applying for HAP. If you have another suitable tenant, let it to them now and tell the HAP people you couldn’t wait any longer, you’ve a mortgage to pay.

arctictree

What happens if your property doesn't qualify for HAP? Does the tenant then get refused the HAP payment?

Manion

Im somewhat unsure. I've heard about landlords getting phone calls from the council to demand rent reduction to bring the rent in line with guidance.

Anyway, this all came to nothing, they couldn't get approval so not going forward.

Emblematic

https://www.boards.ie/discussion/comment/122029320#Comment_122029320

But isn't it the same non-HAP tenant stops paying rent to you?

ballyharpat

https://www.boards.ie/discussion/comment/122031893#Comment_122031893

not necessarily, it's much more difficult to remove a HAP tenant, plus, you are paid a month back, so it could be that you'd have no deposit.

Emblematic

https://www.boards.ie/discussion/comment/122033760#Comment_122033760

What are the additional restrictions involved in removing a HAP tenant?

SharkMX

I used to know a few landlords, and they never had a good word to say about HAP. In fact its one reason why a couple of them got out of being landlords altogether.

Its in arrears, tenants constantly saying, dont have the rent this month, give it to you next month. HAP stops suddenly and you contact the office and they say, you need to send a tax clearance cert or something else for the rent to start being paid again.

HAP seems to accelerate an inspection which comes with several thousands of euro of modifications to be done.

Always waiting for something with HAP. Wither waiting on the HAP to be approved, waiting on forms to be signed, waiting on queries as to why the money didnt land in the bank account.

They all say its just easier to deal with one person in a rental, than deal with possibly multiple people and the HAP people too.

HAP tenants being advised by the CWO not to leave when given notice.

The list of extra hassle is endless, so i'll stop there.

ballyharpat

https://www.boards.ie/discussion/comment/122033871#Comment_122033871

Many do not care much about a bad reference, the council will house them anyway. Some could use your property as a way to force the council to give them a council house, so could damage your house and say they are living in terrible conditions, then they will be forcing the council to move them but using your house as a pawn.

I had one lady give complaints every two weeks when it was near the end of a 4 year lease, I went back to check the issues and repair if possible, she refused to allow me access. I was in touch with the housing officer, there was nothing he could do, he knew what she was playing at, but it was out of his hands, he couldn't wait to wash his hands of her. We had to exchange 'official' emails and letters, but then we'd be able to speak frankly on the phone to address the issues and try to do it with as little of his and my time and money as possible- on top of that , she changed the locks and held on for 3 months after moving out before letting me have access. I got paid for those three months from the council, after a bit of back and forth, meanwhile she got a new council house.

With all the problems she had with my house, she made 3 offers to buy it, but I was not selling.