How long to subsidise for?

[Abigboydiditandranaway]

Hi I would really appreciate any thoughts on this situation. I have my own house that I rent out after moving in with DP. Long term tenant, rent 1/3rd under market rent (I'm ok with this trade off as they are happy to do small jobs and they're a good tenant and wouldn't have been able to afford a rent increase easily). Things were very dicey with their work situation with C19 in the first couple of months so I waived 3 months rent. They aren't working now due to it being v difficult in their field to pick it up and are understandably distressed by this. They've been up front about the allowance of UC they're getting and tbh, I would struggle to manage bills, food, rent on it. They've tried all available roures for £ support and are struggling. We've come to an agreement that they pay a portion of the original rent which is ok but I don't know how long to keep this arrangement. For context my mortgage finished just before lockdown but the rent from this was paying my DM's supported living fees (a whole other thread). If it wasn't I wouldn't really be too concerned in the short term but I just don't know how much longer I can keep being frugal to find this extra money.

If they are claiming UC they will be receiving a housing portion, just how little are they paying? Time to look outside their ‘field’.
I think you need to give them a timescale.

I'm starting to come to that conclusion sadly. It's only a 1 bed maisonette so there isn't much to downsize to. Looking at their UC, if they paid full rent they'd have under £200 p/m for everthing else except rent.

That seems very low award if both are unemployed, for a couple it’s £488/594pm depending on age and £408pm for a single claimant.

Sorry, just trying not to be too specific- it's just one adult. If they paid full rent that's what they'd have left over not the full award.

Hmm. We had UC for a while and our rent was fully covered as a separate payment from our living allowance bit. I think you're being taken for a ride tbh.

A single adult would be awarded £400pm plus housing costs unless in a very expensive or too large house the rent will be covered. I’m not sure how it’s rent and only £200 left. Have you waived rent or expect it paid back? I hope you haven’t told them you’re mortgage free.

Ithank you for your replies. It's central London so yes its expensive. Haven't said anything about mortgage, no. For those of you that know more than me, is it 2 separate payments for rent and living costs?

Yes two separate allowances put into the same block payment. Not sure how much rent allowance is though, ours was all covered but we are fortunate to have low rent. Think the rent allowance can be found online.

UC is one payment now, that was the point of it to bring everything together. I’d ask to see their award letter if you’re concerned, you can check with your local council to see what % of rent is covered by benefits. It varies from area to area. Also some councils can award a discretionary housing payment too.

For those questioning whether the tenant is lying; the rent allowance where I am is 650, that won't even cover a studio flat, you might just get a room in a share house. If I lost my job I'd have about £200 left after rent.

Thanks- I don't have any reason to think they're lying as they offered to give me a copy of the award.

@duvetaddict
No accusations, just giving OP information that she can check on, she’s not running a charity. She/He’s not paying anywhere near the full rent, I think she’s allowed to be worried.

So she pays 1/3 less anyway

Uc will pay housing costs and then £400 ish single person

In the end you are not a charity. Sounds harsh but think tenant is playing you

Give her 2mths or even 3 if nice to end of year abs back to payment JAN or she is out

Get everything written down

Not sure but uc often contact landlord (did with my friend) so assume uou haven’t heard from them

Thanks, no UC havent contacted me. Does anyone know what the max UC pay towards rent? Is there a cap?

If you end the arrangement are you confident that they can pay you or alternatively if they can’t that you’d be able to get new tenants in reasonably quickly?

I'm not confident they could pay, no. I could probably re let without too much problem

@Abigboydiditandranaway
If you go to the council website that covers the area the flat is in you can find the rates of housing benefit. You can ask to see their award letter.

I think, in your shoes, I’d give them the heads up that you have been as lenient as you can with the rent holiday and reduction and now need to give notice that the normal amount will need to be paid from x date. Also give them a deadline to respond to this if they think they will have an issue with being able to meet the terms of the lease. You said that they’re long term tenants so the time between telling them and when you need the full rent might be where you can give them some slack, so they can find an alternative if they need to. It sounds harsh but they have had a lot of grace from you and any landlord would need a viable income from the property - they cannot expect it to continue indefinitely.

Than you everyone. I will ask to see the letter and think about how to phrase a step back up.