Landlord who wants to accept HAP - but a bit unsure

i Rent to HAP, no issues at all over many years.

your concern seems to be that a HAP tenant will be harder on the house than someone who isn’t on social welfare, which in my own experience over 18 years is definitely not the case - indeed my ‘hardest’ tenants weren’t in receipt of social welfare.

the main thing about HAP is the hurdles to clear in order to qualify (proof of ownership, proof of LPT up to date, tax clearance cert, etc etc), they can take a month or two, and HAP is paid in arrears, not in advance, so you can be sitting waiting for the first HAP payment for 2-3 months as HAP is only processed on the final Wednesday of the Monday (this happened to me once, and I must say it was a tester - 3 months of the tenant in the house and zero rent. This issue is how long it takes the local council to get to your case).

I just got this in the post today, which is a big step in derisking HAP - you will be paid for 12 months even if the tenant defaults on their payment to the council. This wasn’t the case, albeit my understanding is that it wasn’t enforced very often

”From 1 May 2023 when a HAP tenant defaults on their differential rent payment to the local authority they will be offered the option of a payment plan to assist them in maintaining their tenancy and allow the HAP payment to the landlord to continue. If the tenant defaults on payment of differential rent under the Landlord Payment Guarantee the HAP payment to the landlord will be guaranteed for a 12 month period or earlier if the tenancy ends subject to confirmation that the tenant is in the property. The HAP payment will be made in-line with HAP procedures within the 12 month period or earlier if the tenancy ends.”

I got emails today it is a major relief.

Only a couple of weeks ago I got one of these threatening letters from HAP informing me that my/our tenant didn't pay the council contribution and the total next agreed rent payment due might be with held.

The chap had his hours cut and is trying to understand the system, in the mean time the RTB have kept him waiting over 6 months for a residents parking permit, no wonder people don't want the hassle of renting houses.

I doubt they want to publicise it - after all, they’ve just removed the only moral hazard on the tenant to pay anything at all

Hi All

Can I check if the council will pay the full rent or guarantee the HAP portion. Tenant usually has a portion to pay the council and the HAP rent differential to the landlord. It reads as though the HAP portion is guaranteed, not the full rent?

Thanks

Good question - the email seems to refer to the ‘HAP payment’ continuing to the landlord, even if the ‘differential payment’ from the tenant stops - I take that to mean the HAP payment won’t change - in other words if you get the full rent from HAP, you’d continue to get it.