Tenants seeking rent supplement due to redundancy.

Dinarius · 27-09-2021 4:32pm #1

My tenants have been in the apartment for 5 years.

They are about to being their sixth.

One has been unemployed for about one year, which I knew about. The other recently lost their job.

They want to apply for rent supplement.

I would like them to stay. They are great tenants and they have been totally up front about their predicament.

They require some information from me for the rent supplement - no problem there.

Is there anything I should know about this welfare supplement? It's never happened before.

Thanks.

D.

Samuel T. Cogley · 27-09-2021 7:05pm

If it's HAP it's paid in arrears. I know you've said you'd like them to stay, and fair play to you, but you've no option really. You have to accept it or be on the receiving end of a discrimination claim.

BENDYBINN · 27-09-2021 7:08pm

What% of their rent will be paid?

Dinarius · 27-09-2021 7:41pm

They intend paying all the rent, making up the rent supplement shortfall themselves.

D.

MBE220d · 27-09-2021 7:45pm

https://www.boards.ie/discussion/comment/117946926#Comment_117946926

Is there much of a difference between what they are paying you now and the rent supplement for your area?

Fkall · 27-09-2021 9:57pm

When completing the HAP document, I delete all clauses that differ to what is written in the lease agreement.

To date HAP have not challenged my changes to their standard form.

Dinarius · 28-09-2021 8:54am

Thanks for all the replies - much appreciated.

I have no idea what the rate for my area is - Dublin 6.

I have not filled in any forms yet. I spoke to tenants only yesterday.

I presume that welfare pays the supplement directly to me and not to tenants first?

For argument's sake, if rent is €1000 and supplement is €500, do I get a tax allowance on the €500 balance on previous rent paid? (assuming tenants don't make up the balance, of course, which they have said they will do.)

Thanks again.

D.

28-09-2021 9:12am

Your tax liability will be the same as if the tenant was paying the full rent.

Find out what the HAP allowance is for each tenant and work out whether the tenants will be able to afford the difference. The fact that they are nearing the end of their Part IV tenancy may make things easier for you should their be issues with their side of the rent.

Double check that your property complies with all current building regulations and also research if new regs are forthcoming. A HAP inspector will be out within 8 months of them accepting your property. They won’t inspect before making their decision.

Dinarius · 28-09-2021 9:53am

Their lease is due for renewal on Friday, October 1.

Anything I should add to it. It's usually the bog-standard lease I print off from one of the renting resources.

This is a one bed apartment. Any stand-out building regulations I should be aware of?

Even if I know the HAP allowance for each tenant, how can I establish whether they will be able to afford the balance? I'm not privy to their finances, obviously.

Re tax: Just to be clear, if they pay only the rent supplement, that's taxed and I lose out on the balance of what I would normally be paid?

Thanks again.

D.

ted1 · 28-09-2021 11:04am

https://www.boards.ie/discussion/comment/117948541#Comment_117948541

They/You don't to renew the lease, they are entering into year 6 of part 4 tenancy. there's no need to renew a lease.

at the end of next year 6 you get to decide to renew the lease.

everything is taxed. are you talking about the 100% interest relief for HAP payments? its 100% for all tenants now

Dinarius · 28-09-2021 11:10am

Thanks.

I've been on the PUP payment myself for a chunk of the last 18 months. So, I can't afford for this to get expensive in any way.

Selling up is an option I might consider, but would it be more awkward in this situation?

D.

ted1 · 28-09-2021 11:29am

https://www.boards.ie/discussion/comment/117948864#Comment_117948864

it shouldn't make any difference to your finances.

28-09-2021 11:36am

Ive just been googling and perhaps they are applying for Rent Supplementrather than HAP as they were probably in full time employment up until recently and not claiming benefits.

I can’t do links but go onto citizens advice and search rent supplement. It also mentions a tax credit for landlords.

Dinarius · 28-09-2021 11:40am

Yes, they were both in full-time employment until recently.

I think it is the rent supplement they're applying for.

Thanks.

D.

MBE220d · 28-09-2021 11:50am

https://www.boards.ie/discussion/comment/117948996#Comment_117948996

If it's rent supplement then it's straight forward as it's only meant to be short term, they will probably want to shift them over to HAP if they are going to be on it long term.

spaceHopper · 29-09-2021 5:44pm

Rent supplement is paid by SW to the tenant not the LL, the tenant pays the LL. HAP the tenant pay the council and the council pay the LL. As far as I know at some point they will be moved from RS to HAP but start with HAP.

They will need a utility bill like electricity or gas in their name and an tenancy agreement dated in the last few months stating rent. If its a modern apartment inspections wise you probably have nothing to worry about.

If they've been good tenants there probably is no down side. If they move to HAP it would be a good time to review the rent so that in 6 months you aren't doing more paper work.

MBE220d · 29-09-2021 6:37pm

https://www.boards.ie/discussion/comment/117955339#Comment_117955339

You can get the rent supplement paid directly to the landlord with the tenant also paying their share by DD to the landlord.

JimmyVik · 30-09-2021 12:13pm

This is the kind of stuff that makes my blood boil.

Here you have a situation where people have fallen on hard times, as has the landlord.

It should be easy for the landlord to give them a break and take hap for whatever amoutn of time they feel is good between them.

Yet the legislation etc have made things so complicated and dangerous for all involved that the fear of it going wrong somewhere is causing the issue.

If only our ministers understood that the legislation is getting in the way of adults coming to mutually beneficial agreements for fear of something going wrong that they cant get out of if it does.

spaceHopper · 30-09-2021 1:56pm

https://www.boards.ie/discussion/comment/117958487#Comment_117958487

I don't know where you are getting that from the OP just asked how the process works and what do they need to do on their side. And what to lookout for.

JimmyVik · 30-09-2021 2:39pm

https://www.boards.ie/discussion/comment/117958957#Comment_117958957

Exactly my point.

Tenants seeking rent supplement due to redundancy.

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