I understand that Universal Credit has felt like a huge cultural change for many private landlords, their staff and tenants.
Universal Credit is a flexible benefit that gives people more control over their working lives and their finances. Payment under Universal Credit is designed to mirror the world of work, to help make the transition into employment smoother. To support this, rent is paid directly to tenants rather than landlords. While everyone adjusts to the new system, I want to provide some simple pointers for landlords to help support their tenants through the process.
Housing payments are now included in a tenant's Universal Credit claim, which means tenants are responsible for paying rent to their landlord directly.
Speak to your tenants early to make sure they know how much Universal Credit they will get towards their housing costs and are ready to pay their rent themselves.
As a landlord, you can request for your tenant's housing payments to be made directly to you.
If you have tenants who may struggle to pay their rent, are in rent arrears or are vulnerable, you can apply for their housing costs to be paid directly to you.
Tenants can also request for an alternative payment arrangement to be put in place by speaking to their work coach or case manager.
Tenants who can't wait for their first Universal Credit payment can apply for an advance to help with rent payments.
Claimants can get up to a 100% advance payment right from the start of their claim, and on the same day if needed. They can pay this back over 12 months.
We introduced a two week 'run-on' earlier this year for those moving from Housing Benefit to Universal Credit.
Remind tenants who are moving from Housing Benefit to Universal Credit that they will receive an extra two weeks' support for housing costs which they don't need to pay back.
The majority of tenants will need a bank account for their Universal Credit payments.
Encourage your tenants to set up direct debits or standing orders for their rent – it will help to make sure payments are made on time and support them in managing their money.
Jobcentres have dedicated staff to support you – don't miss out on this helpful resource.
Get to know your local partnership manager – you can get all sorts of advice and guidance on Universal Credit from them. Jobcentres can also hold regular landlord forums or provide other opportunities for discussion about how the system is working for you.
But what about when a working tenant loses their job and ends up on UC, or one on HB changes over to UC? We can't just evict decent tenants because their circumstances change, perhaps temporarily. I admit, though, I am dreading one of my tenants going onto UC - and so is she!
Landlords do what they've always done, manage risk.
Sure, anyone can lose their job but some tenants are at far higher risk of going on benefits than others.
Using a recent example, what are the odds on a well paid professional couple both going onto benefits?
Both on 3x plus the rent, working in different industries, degrees, references, long term solid work history, never been on benefits, families never been on benefits, substantial savings. Home owning guarantors and RGI to be extra careful if required.
A Shelter piece on the BBC right now about the increase in temporary accommodation -an obvious consequence of UC and the attacks on landlords.
So now we have to approach tennants and give them financial planning advice.
Even assuming we don't get told to 'Go away' I'm not qualified to do this.
Another thing landlords are going to be blamed for?