Who do I pay back?

Who do I pay back?

11:47 AM, 4th May 2021, About 3 years ago 8

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The tenant has moved out and Rent in Advance pays everything up to date, so there are no arrears and everything is squared up.

As she left after the Benefit Assessment Period, it will mean I will get her Universal Credit rent paid to me for the last month, but the RIA has already paid this.

I am paid directly by UC, so when this money comes into my account do I pay this to the tenant or try and pay this back to UC?

My concern is that UC will ask it back from me as an overpayment, so who do I pay it back to?

Many thanks


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Robert M

17:26 PM, 4th May 2021, About 3 years ago

Once the money is received and if the tenant's account is in credit, then perhaps write to the DWP (Universal Credit) and advise them of the situation. In the meantime allocate the surplus rent to a "holding account" within your accounts so that it does not count as profit (as it is a liability that is owed to UC). If UC fail to provide instructions as to what to do with the excess rent, i.e. how to pay it back to them, then keep it in the holding account and every 6 months send them a copy of the letter so that you can show that you have made every effort to return the excess payment. Discuss with your accountant.

Reluctant Landlord

14:03 PM, 5th May 2021, About 3 years ago

Reply to the comment left by Robert Mellors at 04/05/2021 - 17:26
so I should NOT pay the tenant this money direct at all? I clearly will have a whole payment received and sent to tenant trail, so wouldn't it be better to send this info to UC to show it has been redirected to tenant - after all she needs it to pay the next landlord and I can prove I haven't got it.

Robert M

14:15 PM, 5th May 2021, About 3 years ago

I think you need to discuss this with your accountant. It may be affected by whether the tenant is in credit on their rent account (once all damage deductions etc are accounted for). I am not an accountant, but when I've received a payment of UC that the tenant was not entitled to, I notified the DWP (several times) and they ignored my notifications, so my accountant advised me to treat it as money owed back to the DWP, so it is accounted for as a liability held in a suspense account (not credited to the tenant's rent account). Whether this is the same advice you would get from your own accountant or not, I can't say, so I would suggest that you seek professional advice from your own accountant on this issue.

Reluctant Landlord

14:21 PM, 5th May 2021, About 3 years ago

Reply to the comment left by Robert Mellors at 05/05/2021 - 14:15
Thanks - I'm more concerned about whether I forward it on to the tenant directly or not though. I don't want to be accused of an overpayment by the DWP later on down the line that I have not paid back, even though I can show I forwarded the money to the same claimant/tenant.

Anyone else had this issue?

Reluctant Landlord

15:38 PM, 5th May 2021, About 3 years ago

Got it sorted! UC will pay me the rent for 1 - 30 April as she was in residence for this whole period. All I need to do is pay her back the RIA that she herself paid me at the start of the tenancy and advise her to change her claim to her new address asap so no further (unwarranted) payments are made to me.

Basic error on my behalf. dang!


9:26 AM, 8th May 2021, About 3 years ago

Do not pay direct to the tenant if you have a UC Alternative Payment Arrangement in place.


14:36 PM, 8th May 2021, About 3 years ago

If Rent in Advance is some kind of insurance then I would have thought the money is owed to them.

Mick Roberts

12:58 PM, 9th May 2021, About 3 years ago

I've got UC paying me still for a house I've sold & tenant is no longer mine.
They have no email procedure to tell them this very important process. They are complete Imbeciles!

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