‘Rent Review’ leaving me without rent for 3 months – Advice Please

Swift66 · 20-04-2015 10:48am #1

Hello,

I have been letting out a property for the first time for one and a half years now and have been plagued with problems. My letting agent advised me that problems with Rent Allowance tenants were exaggerated and that I was unlikely to get a private tenant in the area anyway.

The current issue is that I have not received any rent for two months. My letting agent tells me this is because of a 3 month Rent Review (Rent was increased after the first year) that is required on the property. The agent says that the Department of Social Protection say they have been in contact with the tenants to arrange a property viewing but that they have heard nothing back from the address so that rent has been paused and will be back dated after an inspection has been carried out.

Is anyone else having this experience?
Is this common practice?

How can rent be stopped without an inspection?

How can rent be stopped by the DSP without notifying the landlord / letting agent?

Any information / advice really appreciated.

Thanks

Cuddlesworth · 20-04-2015 11:14am

Swift66 wrote: »

I have been letting out a property for the first time for one and a half years now and have been plagued with problems. My letting agent advised me that problems with Rent Allowance tenants were exaggerated and that I was unlikely to get a private tenant in the area anyway.

You need to get a new letting agent, they are not looking out for your interests here.

I'm not overtly familiar with the RA system but most of your post sounds like crap. A rent review in most cases is where the local council have lowered the maximum allowed or the circumstances of the tenant have changed and the council will only pay a lower rate. Its up to the tenant to get the lease reduced or face eviction. If this is the case, you have wasted 3 months of eviction proceedings.

Michael D Not Higgins · 20-04-2015 11:17am

The rent supplement is independent of the rent paid to you by the tenants. They still have an obligation to pay while under review (of course this usually isn't practical for welfare tenants). The department don't have have to notify you because it's not your business. The tenant is receiving the benefit and paying their rent with it but there is no contract or interaction with the landlord needed.

You have two options. First, you can evict the tenants. Second, you can wait it out. There are pros and cons to both, but basically if you wait they might not get the supplement again and you'll be chasing welfare tenants with no assets for back rent and have to evict anyway. There is a chance you will get your money though.

If you evict straight away you can cut your losses as you are unlikely to get the money owed. However there are numerous cases of both private and welfare tenants overholding due to the slow process of evictions in Ireland through the PRTB. Even Threshold have been known to advise tenants to do this!

Milly33 · 20-04-2015 11:46am

I would get rid of your agent... Just do it yourself

murphaph · 20-04-2015 11:46am

Start proceedings to evict immediately. 3 months with no rent paid? What the DSP does is not your problem. Your relationship is with your tenant. Where they get their rent from is of no concern to you. Could also be a cock and bull story and they RS has actually been paid to the tenants but not on to you. Could be true. The DSP randomly stop RS payments all the time.

This is the reason landlords don't want RS tenants.

idnkph · 20-04-2015 12:42pm

I am a tenant and was left in the same boat as your tenants last year. I knew a month in advance that the review was coming and was given a list of things needed before the date given on the letter from SW. I got everything in order 2 weeks before the due date but still ended up having my supplement suspended and SW officer gave me the run around.
I ended up making a complaint against the officer after 4 weeks. but it was 12 weeks before it was sorted and all back paid. Have your tenants asked you for any documentation? (rent book, rent receipts, renewed copy of letting agreement?) Or have they asked the letting agent for these things? If not then they are not bothered and probably just seeing how long they can get rent free before eviction.

Wabbit Ears · 20-04-2015 1:58pm

I would issue a notice of arrears and begin the eviction process by following the procedure to the letter.

I would fire the agent with immediate effect.

I would write off the fact that you are missing 3 months rent and may be looking at a year or more of no rent depending on the tennents.

In future look for proof of a history of employment from perspective tennants.

_Kaiser_ · 21-04-2015 9:06am

Wabbit Ears wrote: »

In future look for proof of a history of employment from perspective tennants.

Which means nothing really.. someone working today could just as easily be unemployed next month for whatever reason - maybe they're a contractor and their contract isn't renewed, maybe the company folds or is restructured etc.

Ultimately though, if the tenant isn't paying and you're not satisfied with the explanation you issue eviction proceedings... simple as.

The bottom line is that RA tenant or not, landlord or not, this is a simple business transaction (I really don't get why we in Ireland have such a difficulty with this - well I do, it's because no-one involved takes renting seriously as a concept). As long as the tenant pays their rent on time and as long as the landlord lives up to their side of the deal in respect of repairs etc if needed then really interaction should be minimal even non-existent from one end of the lease to the other.

Pawwed Rig · 21-04-2015 9:07am

Wabbit Ears wrote: »

I would issue a notice of arrears and begin the eviction process by following the procedure to the letter.

I would fire the agent with immediate effect.

I would write off the fact that you are missing 3 months rent and may be looking at a year or more of no rent depending on the tennents.

I would do all of this except write off the rent. You can put a claim through the PRTB for that.

Wabbit Ears · 21-04-2015 10:30am

Pawwed Rig wrote: »

I would do all of this except write off the rent. You can put a claim through the PRTB for that.

I would wholeheartedly agree that its worth chasing but really still, The op should be proactive on the fact that this may well be lost income including, if necessary, discussing terms with the bank for reduced mortgage payments and generally budgeting accordingly.

Plan for the worst, hope for the best and all that ...

Swift66 · 22-04-2015 11:03am

I agree that the eviction process must be started immediately - I should have done that two months ago.

Should I begin that process with current agent or immediately engage a new agent and begin eviction proceedings then?

How proactive will a new agent be in taking on a property with Rent Supplement Tenants who are in three months arrears - what exactly could a very professional experienced agent do in this circumstance?

Thanks

Cuddlesworth · 22-04-2015 11:06am

Swift66 wrote: »

I agree that the eviction process must be started immediately - I should have done that two months ago.

Should I begin that process with current agent or immediately engage a new agent and begin eviction proceedings then?

How proactive will a new agent be in taking on a property with Rent Supplement Tenants who are in three months arrears - what exactly could a very professional experienced agent do in this circumstance?

Thanks

I doubt any new agent will take on a non-paying tenant. You will need to take control of this yourself.

‘Rent Review’ leaving me without rent for 3 months – Advice Please

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