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Question Title: Housing Benefit Overpayment
| Question: 111 |
| A large portion of my tenants are on housing benefit (about 200). At times, for whatever reason, the tenants entitlement ceases. The tenants, more often than not, fail to inform us of the situation and we know nothing until we receive information from the local authority requesting that we pay back the overpaid amount. At this point it is often the case that the tenants have moved on and we have no hope of claiming back the money from them. As the client landlord has already received his rent less the management fees, there is often difficulty in reclaiming this money. In some cases, the property concerned is no longer being managed.
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| Answer: |
| Where there are significant claims for recovery of housing benefit overpayments, you should firstly consider lodging an appeal. See case study in Letting Update Journal April 1998 p10 for details. We explain the procedure for housing benefit appeals in more detail in the July 1998 issue. Secondly, when letting to housing benefit claimants, it can be helpful to add appropriate provisions in the tenancy or guarantor agreement whereby the agent is entitled to recover in turn any such claims for repayment of housing benefit from the tenant or guarantor. Similar clauses should be inserted in any management agreement with your client landlords as explained in our housing benefit article on page 13. In all cases, it is important that such clauses are carefully constructed so that recovery may be made after the end of the tenancy or management agreement. A local authority is entitled to backdate such recoveries by up to six years.
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References:
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Pages:
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Hyperlinks:
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Letting Update Journal |
July 1998 page 17 |
letting-update-journal.html
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Letting Update Journal |
Oct 2001 page 13 |
letting-update-journal.html
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Letting Handbook |
Chapter 15 |
letting-handbook-and-factsheets.html
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For more information, discuss on the Forum
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