In 1999 when I got my first buy-to-let property I made the decision that I wasn\u2019t going to let to LHA (Local Housing Allowance) tenants.<\/p>\n
The simple reason for this was because, at the time, I heard that if a tenant hadn\u2019t been entitled to any benefits and the rents had been paid to you (the landlord) directly, then you were liable to pay everything back. This made me run a mile and suffice to say I never considered the strategy again.<\/p>\n
However, I do now know landlords who run very successful property businesses concentrating on this strategy so I know it works, but it still wasn\u2019t for me; I\u2019ve just concentrated on professional lets.<\/p>\n
Until now!<\/p>\n
I had a tenant who moved into a property over 12 months ago. Unfortunately their business succumbed to the economic climate and now they have become LHA tenants. As a result of them receiving the allowance directly, they\u2019ve not been passing it on to me so hence have fallen into arrears.<\/p>\n
Now, if you do let to such tenants and if they fall into a minimum of two months’ arrears, you can contact the local authority and ask for the rent to be paid directly to you.<\/p>\n
This is exactly what I did.<\/p>\n
As soon as the tenant was two months in arrears, I called the local authority and they asked me to provide proof that the tenant was in arrears. I said \u2018No problem!\u2019 and they said you\u2019d be surprised at how many landlords don\u2019t have such proof readily available.<\/p>\n
I opened up Landlords Property Manager, ran the \u2018Tenant Payment History\u2019 report and emailed it over to them along with a copy of the AST.<\/p>\n
Here is a sample of the report right here…and it was generated at the touch of a button.<\/p>\n
>>> http:\/\/www.propertyportfoliosoftware.co.uk\/Tenant_Payment_History_Report.pdf<\/a><\/p>\n This report and my short email managed to initiate a response within 24 hours where the local authority said that they would now be paying the rent directly to me. Result!<\/p>\n Why am I sharing this report with you?<\/p>\n Well I was just seeking some advice from the NLA\u2019s advice line and they said it was the first time they had heard of someone getting such a fast response from the local authority.<\/p>\n I am certain it was down to the documentation I sent them and the Tenant Payment History report, Feel free to re-use this template. If you\u2019re dealing with LHA tenants who decide not to pass on the rents to you, then I hope it gets you as fast a result as it did for me.<\/p>\n Alternatively you can go here to learn more about how our award winning software can make your life easier and help you to get better organised in 2011. This is a sample of just one of the many one-touch reports it generates…<\/p>\n > http:\/\/www.propertyportfoliosoftware.co.uk\/landlords_property_manager_professional.prod.html<\/a><\/a><\/p>\n Happy investing In 1999 when I got my first buy-to-let property I made the decision that I wasn\u2019t going to let to LHA (Local Housing Allowance) tenants. The simple reason for this was because, at the time, I heard that if a … Continue reading
\nwhich shows exactly how the arrears stand with the tenant.<\/p>\n
\nAmer Siddiq<\/p>\n","protected":false},"excerpt":{"rendered":"