# Rent Allowance Tenant



## wigwam (15 Feb 2009)

My tenant is getting a rent allowance from the DSW. She has asked for a rent reduction. 

I don't understand why she is asking for a reduction if she's getting a rent allowance. Is the rent allowance capped?


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## j26 (15 Feb 2009)

It seems to have been reduced since Christmas for a good number of RA people.


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## gipimann (16 Feb 2009)

There could be 2 reasons for the request:

Each county has a maximum rent limit, and Rent Supplement isn't generally paid if the rent exeeds the limit - however, if the tenant had been working and recently became unemployed they may have been given a period of grace to find somewhere cheaper.   So rather than moving, the tenant is asking for a reduction from you.

Each tenant must pay a minimum contribution to Rent (i.e. Rent Supplement doesn't pay all of the rent).  This contribution recently increased from €13 to €18 per week, so maybe the tenant is feeling the pinch.   In this case, a rent reduction wouldn't solve their problems, as the Rent Supplement would be reduced if the rent is reduced and the tenant still has to pay the minimum contribution.

If you do reduce the rent, you should ask the tenant for a Rent Supplement Review Form, so that you can declare the change to the HSE.


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## DonDub (16 Feb 2009)

gipmann ,does that mean its a waste of tennants time looking for a reduction,as the HSE will just reduce the RA accordingly?.If landlords are willing to reduce the rent in the interest of keeping the tennant,and their house/apt rented,then surely this is detrimental to all involved?sounds like a vicous circle ,I understand you are just explaining the situation,seems like its a catch 22 situation...


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## murphaph (17 Feb 2009)

DonDub said:


> if landlords are willing to reduce the rent in the interest of keeping the tennant,and their house/apt rented,then surely this is detrimental to all involved?


......except the taxpayer of course! I believe RS will be an area of major reform in the not too distant future. I'm a landlord btw, but a taxpayer too. If rents go down, RS should follow for the good of the country.


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## rev87 (17 Feb 2009)

murphaph said:


> If rents go down, RS should follow for the good of the country.


But the problem is landlords won't reduce the rents for rent allowance tenants!! It is keeping an artificial ceiling on rent prices...


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## gipimann (17 Feb 2009)

DonDub said:


> gipmann ,does that mean its a waste of tennants time looking for a reduction,as the HSE will just reduce the RA accordingly?.If landlords are willing to reduce the rent in the interest of keeping the tennant,and their house/apt rented,then surely this is detrimental to all involved?sounds like a vicous circle ,I understand you are just explaining the situation,seems like its a catch 22 situation...


 
In a word, yes!

The situation is that Rent Supplement tenants have a specific entitlement, and getting more than that entitlement by not declaring a change in rent may be seen as fraud on the tenant's part, as they are obliged to notify the CWO of any change in circumstances.   If the rent is reduced, the tenant's minimum contribution doesn't change (so they pay the same), it's the balance paid by the HSE/DSFA which changes.


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## murphaph (17 Feb 2009)

rev87 said:


> But the problem is landlords won't reduce the rents for rent allowance tenants!! It is keeping an artificial ceiling on rent prices...


It's a free market and quite frankly the number of landlords taking RS tenants has shot up (out of desparation no doubt). If the HSE just cuts the levels of RS it will pay (especially in rural and provincial towns with a massive oversupply of rentals) then tenants will be forced to ask for reduced rent, come up with the difference themselves or simply move house to a landlord looking for the going rate. Once this happens a few times landlords with RS tenants will reduce rents to the going rate or lose their tenant (with secure rent, not dependent on being in work etc.) and then run the risk of a long void period. I have RS tenants and I know what I will do if the HSE cuts the RS and I'm asked for a reduction. I will bargain with them.


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