Understanding Universal Credit as a Landlord

As managing agents, we need to stay up to date and advise our landlords on what is coming. Under the current situation, more and more tenants are having to start the process of claiming Universal Credit and many don’t understand the process or how, as a landlord, they will be affected.

To shine more light on the subject, we have provided some steps landlords should take in dealing with new Universal Credit claimants:

1. Communication is key

Make sure you are in contact with your tenants and support them wherever possible. This is a hard time for all, with many losing their jobs or having their income significantly reduced. This, leading to many worrying about losing their home. Consider offering reduced rent to meet the housing element of Universal Credit or a rent holiday if circumstance allows.

2. Dot the ‘i’s, cross the ‘t’s

Part of the Universal Credit application requires a letter verifying the rental amount, address and when the tenancy commenced. This will help the tenant qualify for the housing element mentioned earlier which goes toward covering rent.

3. Check the dates

Something to be aware of is that the payment of Universal Credit may not fall near the date rent is due. Making sure you are speaking to your tenants about key dates will allow you to assess how it falls in line with the tenancy agreement.

4. Direct payment

As part of the process, claimants are able to fill out an Alternative Payment Agreement (UC-47 form) which allows the housing element of their payment to go straight to their landlord.

Many tenants prefer this method as it allows them to manage the rest of their finances more effectively. If the tenant is already in arrears, Landlords can apply for Third-Party Deductions to help reduce this, allowing an additional amount to be taken monthly from the claimant’s personal allowance.

Make sure you are speaking to you tenants about this. If you need any more information,get in touch with our Poole Townsend team of experts.

You’re in safe hands

Trust our team of local experts to provide the best advice on a wide range of legal and financial issues whenever you’re facing a life change and need the best support.

0800 389 2939

Our team are available Monday to Friday 9am - 5pm

Find Your BranchMEET THE TEAM

She'll be glad you planned ahead

Organising your finances today, while planning for the future can be a challenge. We’ll put the kettle on – and take the pressure off.

GET EXPERT FINANCIAL ADVICE

You'll know when it's time to talk

From making a will, to matters of business law our qualified solicitors can offer advice and guidance. Pop in for a chat or call us to make your free appointment.

GET EXPERT LEGAL ADVICE

Sign up for our newsletter

Your details

No charge. Cancel anytime. We value your privacy and will not share your details.

© Poole Townsend 2017 - 2020. All rights reserved.
Poole Townsend solicitors Ltd (Company no:10964550) is a company registered in England and Wales with its registered office at 69-75 Duke Street, Barrow in Furness, LA14 1RP. A list of directors is available at the registered office address. Authorised and regulated by the Solicitors Regulation Authority number 647087. We are independent financial advisers authorised and regulated by the Financial Conduct Authority. VAT registration number :154365563.

Poole Townsend Estates Ltd. (Company No: 10960705) is a company registered in England and Wales with its registered office at 69-75 Duke Street, Barrow in Furness LA14 1RP. A list of directors is available at the registered office address. Regulated by the Council of Licensed Conveyancers to provide Conveyancing services. (Firm no: 3438) VAT registration number 288092466. Our Estate Agency is a member of the Property Ombudsman scheme.

Poole Townsend Estates Ltd Property Client account has client money protection, to view our Client Money Protection Certificate please click here. The Propertymark Conduct and Membership Rules can be found here.

Professional Indemnity Insurance – please contact Martin Oates at the address above if you require details of cover held.

Registered with the Information Commissioners Office for data protection purposes (ICO No: ZA494153 & ZA331395)

close

Book Your Free Valuation

Fill out the form below and we'll get in touch to arrange your free valuation.

Your Details

We value your privacy and will not share your details.

Top