Letting agent claiming I owe money because my housing benefit is paid every 4 weeks

poppy123456 said:

This is the issue that a lot of people have when claiming benefits because they are always paid in arrears and a LL will want rent in advance. When you moved into where you are now, didn't you pay any rent in advance? Landlords often ask for that. 

When is that 13th payment due to be paid?

Thanks for the quick response!

I have lived in the property of over 12 years, my previous home was also rented from the same landlord, when I moved I didn't pay a bond or advance. But it was fine for years, the issues really began just over 2 years ago when a new letting agent took over the admin. 

I had the exact same problem with them initially, I may have even seeked advice about it here, eventually it was sorted out but this time I seem to be dealing with a "computer says no!" type. Who is flat out refusing to take anything else into consideration, the balance sheet say's I owe, that's all that counts.

MW123 said:

@Jamie_L

From the letting agent's perspective, the rent is likely due monthly and they expect to receive the full monthly amount each month, regardless of the housing benefit payment cycle. So there is a timing mismatch.

I would recommend clearly documenting the numbers as you laid them out - the annual rent, housing benefit amount, your top-up amount, and how the 13 payments resolve it. Put this in writing to the agent so they can see you are fully meeting the obligation, just on a different cycle.

Ask the agent if, given the guaranteed nature of the housing benefit payments, they would be willing to treat your rent as fully paid each month, with the understanding that by year-end it will be fully caught up. They may agree to this if you've been a reliable tenant.

As a last resort, you could file a complaint with the letting agency's redress scheme if you feel they are being unreasonable. But hopefully a clear written explanation and some flexibility on their part can resolve this.

Thanks for replying, you've made some excellent suggestions.

I have tried many times to explain things as clearly as possible, breaking the amounts down yearly, monthly and weekly but there's just no reasoning with them.

They have history from the last 2 years (I've lived here for over 12 years with HB paying this way) where payments were made exactly the same and like you say, annually it works itself, but this time they're only going by what the balance sheet shows.

I do suspect the agent is lone wolfing it, there have been threats of taking the matter further with their boss and the landlord but nothing has happened, even though I welcomed it. When I asked what their complains process was, this was their reply; "Complaints come to me first then to the director". I'm not sure that's how it should work?

MW123 said:

@Jamie_L

You're correct in your suspicion that the complaint process described by the agent is improper. A legitimate complaint procedure should involve an impartial third party, not merely an escalation within the same organisation.

It seems that the agent may be acting independently and making empty threats about involving their superiors or the landlord. The fact that nothing has come of these threats, despite your openness to such escalation, suggests that the agent may not have the support of their management or the landlord in this matter.

When you inquired about the complaint process and received the response, "Complaints come to me first then to the director," it further indicates that the agency lacks a proper complaint handling procedure. This is concerning, as it implies a lack of accountability and an inability for tenants to have their grievances fairly addressed.

Draft a formal complaint letter addressing the issue, your efforts to resolve it, and the agent's inadequate responses. Submit this letter to the agency's director. This establishes a written record and may encourage them to take your concern more seriously. If the director fails to resolve the problem, you have the option to escalate your complaint to the letting agency's independent redress scheme. 

UK law mandates that all letting agencies hold membership in either The Property Ombudsman or The Property Redress Scheme. In your letter to the director, request that they disclose which of these two organisations their agency is affiliated with. Once you have this information, you can file an official complaint with the appropriate redress scheme if necessary.

Thank you ever so much, this is incredibly useful information. I plan to do exactly as you say.

It is such a relief to know that I do have recourse and I'm not just at the whim of some overzealous jobsworth.

I will keep updating this thread with any developments.

I wanted to do a quick update on my situation, just in case anybody else is has a similar problem.

I messaged the person who I thought was the manager of the agent I'm having the issue with and who had been mentioned as "being aware" in the emails.

And there's 2 things really, firstly they're no longer the manager (but do still work there in a consultancy role) and the person who the issue involves is now the lettings manager. And they completely backed their colleague and stated "This has gone on for too long and needs paying". So zero help.

I not sure how relevant this is but, I do have email from the previous manager from the 2nd of January this year outlining how my rent is made up, stating the correct amounts which completely contradicts what the new manager has said. And would show me in compliance with the requirements. 

After getting no luck with messaging their manager, I have spoken with my councils housing benefit helpline and I got to speak to a very nice woman, who was really helpful. They gave me the contact details for a benefits advisor whom I have emailed outlining the issue, they also said they had never heard of a landlord/letting agent forcing a tenant to pay the arrears due to HB being paid in 13 installments instead of 12.

I have also contacted CAB, after being unable to get through to someone by phone I messaged through their online service. I don't know how much they can help with the rent issue, but I'm sure I'll appreciate their help when it comes to the complaint process.

Would anyone recommend contacting the letting agent and asking if this is a company wide policy for all housing benefit claimants to make up their arrears, or is it just me? (But I'd hate to give them ideas).

WhatThe said:

Can you just pay the £27 and be done with this? Let their software do the calculations it wants with your kitty

 

Sorry, I should of been clearer, it's not just £27, it's that amount a month, also, along with the money I'm already paying towards the shortfall and the extra on top I would need to pay down the arrears.

I'd be looking at paying between £45-55 a month and I've little faith they'll refund me when the Housing benefit makes the 13th payment to balance the book.

And due to being paid in arrears, what would happen to the final housing benefit payment if/when I leave the property? Would that be protected under a bond scheme?

I have replied to everyone buy all my posts don't seem to appear straight away for some reason, I'll check back tomorrow

worried33 said:

Its exactly as poppy said, a typical rental agreement payment is in advance, benefits are in arrears.    (this is best case scenario assuming HB is fully funding rent).

Your case highlights the problem of rent going straight from council to LL it has added this complication.

To me there seems two ways to resolve this that would perhaps satisfy the agent.

1 - You make up the difference for this year, and the 13th payment is treated as an extra payment for the start of the following year, meaning instead of arrears, you have a buffer that goes down a bit each month until £0 the final month, of which there is an extra payment again.

2 - Ask them to setup a billing system, that calculates any shortfall each month, and you have a direct debit where that amount is taken, the month where they get two payments from council, they would automatically send the extra to your bank account as it would be an overpayment.

Thanks for the advice, I agree that the whole situation is a little complicated, HB paying on a different cycle and in arrears being the complete opposite to what LL's prefer.

I did have what you outlined in the 2nd option and it worked fine for the passed 12 years (10 with a previous Letting agent and 2 with this one), but they have suddenly decided that isn't acceptable anymore and forcing me into option 1. 

It's not just what they've done it's how they've done it, with no explanation and no warning what was going to happen, I just suddenly get "Up owe, pay up!" messages. Making things worse, in just over 2 months I've had contradicting emails from two people outlining my payment commitments, one accurate the other with me accumulating debt. There's hasn't been any consistency.

I suppose I am trying to think a little long term as well, what could happen in 6 months time? Because worst case scenario would be, I pay as they demand and when that's paid off they think, "They can afford it before, lets raise the rent by the amount they were paying". And what would happen to the final arrears clearing HB payment they receive after I move out? Worst case obviously.

Ultimately, I think the truth is, I don't like how they've handled the whole situation, I've been made to feel I have purposely been giving them the run around and using delaying tactics' to avoid paying the arrears, which just isn't true. I have paid exactly what I have been asked by one person (the old manager), but another (new manager) has decided this isn't good enough for them and wants' to enforce their will on me, for no other reason than they can.

If I fight this, then hopefully the new manager will realise you can't be in a position of authority and treat people with such little humility. I'm hoping maybe I can save someone else down the line from having to go through something similar, especially if they aren't able to access the same support I can.