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markandspike
06-03-2007, 12:52 PM
Hi All.
Hope someone can help me out.
I have a tenant who pays £450 pcm on the 1st of the month (in advance). She payed me Decembers money then claimed housing benefit from the 4th Dec. She has been paying me half the rent in jan, feb and march (£225). Now the council has back dated the payments (£590) till 4th march. And 181 every fours weeks thereafter.

My problem is She pays monthly in advance but council pay 4 weekly in arrears. How do i stop it getting messy.

Hope someone can help me.

Thanks
Mark

Joannepowell
06-03-2007, 14:39 PM
Markandspike - you might want to consider setting up a spreadsheet which you can record all the payments due & payments made onto.

I have a similar situation to you but my tenant not coughing up the shortfall. I run a spreadsheet for both the tenant and the council. The tenants spreadsheet is worked as monthly in advance (as per tenancy agreement) and the councils spreadsheet is worked weekly in arrears. Payments from either party are entered onto both spreadsheets and so I can see were I'm upto at any given time.

If any members have an easier solution I'd be interested in hearing it - time being money and all that!

Kind Regards

J

markandspike
06-03-2007, 16:33 PM
Should i try and get the tenant to pay weekly. But will i be always in arrears.

thanks
mark

Joannepowell
06-03-2007, 17:29 PM
Much would depend if you want to stick to rent account being due in advance. If you want to stick to advance payment then ultimately the tenant will always be in a position of arrears because of the council paying in arrears.

You could amend your records to weekly payments in arrears to fit in with council payments in which case your tenant would actually be in credit for a couple of weeks each month (if she continues to pay her half in advance that is).

I personally would continue to accept the half rent payments off the tenant in advance.

Regards

J

markandspike
06-03-2007, 23:32 PM
Thanks joanne

Just a follow on question.

Because my tenant payed the full amount in dec (£450) and £225 in jan feb and march, The council claim was back dated to 4th dec so she is £111.92 in credit at the moment when i get the cheque from housing benefit. What should i do with that with the council paying in arrears.

Thanks
Mark

Joannepowell
07-03-2007, 00:10 AM
Simple answer is to do nothing. Although there will be a credit balance when the next cheque arrives there will actually be arrears again within a week.

I've just received a cheque myself from the council which put the tenant in credit but only for a matter of days (based on payment in arrears). However, the tenant is actually one month in arrears (based on payment in advance).

Just keep accurate records of who paid what and when so that when your tenant vacates you know who owes you what. If the tenant continues to pay half the rent in advance then she will be straight with her rent when she comes to leave the property (possibly even in credit). However, the council will always be in arrears and so would still owe a payment when the tenant leaves.

Complicated I know!

J

Worldlife
07-03-2007, 06:00 AM
<snip>
You could amend your records to weekly payments in arrears to fit in with council payments in which case your tenant would actually be in credit for a couple of weeks each month (if she continues to pay her half in advance that is).

I personally would continue to accept the half rent payments off the tenant in advance. <snip>


The record should reflect accurately the extent to which at any time the tenant is in arrears or in credit based on the tenancy agreement that is usually one months rent in advance, You will have to record each rent due date as a debit and the contributions made by the tenant and the Council on the date they are credited to your account.

The spreadsheet is for your records and could be needed in Court should the tenant let the rent fall into substantial arrears by failure to provide his/her contribution to the rent.

If you have not already done so it is essential to get a letter from the tenant to the Council authorising them to discuss with you matters relating to the rent and Housing Benefit.

Ericthelobster
07-03-2007, 08:33 AM
Perhaps this is another thread which could be trotted out the next time someone posts a "Why-are-all-landlords-such-bastards-and won't-accept-perfectly-decent-folk-who-are-HB" query :(