# Is it extra hassle to accept rent allowance ?



## kevinf (19 Oct 2006)

Hi
Not sure if I'm in the right place.
I've had a tenant in my investment property for the past 3 years but she moved on and I have placed an ad in the local paper again.
I have been getting a lot of calls from people asking if I accept rent allowance. I have been told it is less hassle if I refuse rent allowance tenants.
Is this correct ?
Any advice would be appreciated.

Kevin


----------



## Peadar (19 Oct 2006)

*Re: Is it ok to accept rent allowance ?*

Some rent allowance tenants will be grand,some will be trouble. Make sure you vet them very well, get references and then check them, same as for any tenant you would put into your house.

If you don't like the look of them don't put them in, better to be a month without rent than have long term hassle with messy tenants.

A lot of people qualify for rent allowance for various reasons; single mothers, disabilities etc. So they shouldn't all be tarred with the same brush as 'troublemakers'.

Peadar


----------



## gianni (19 Oct 2006)

*Re: Is it ok to accept rent allowance ?*



> A lot of people qualify for rent allowance for various reasons; single mothers, disabilities etc. So they shouldn't all be tarred with the same brush as 'troublemakers'.


 
Excellent point Peader... I was a rent allowance tenant for a period of time and I was, IMHO, a model tenant. It is advisable to chose tenants on many criteria but I don't think rent allowance should be one...


----------



## Peadar (19 Oct 2006)

*Re: Is it ok to accept rent allowance ?*

Just as an extra. I have a property with a rent allowance tenant and she is a model tenant. Keeps the place well maintained, no trouble, one evening I forgot to collect the rent and she rang me to remind me about it.

I agree with gianni, do your own research and base your decision on that, not whether they receive rent allowance or not.

Peadar


----------



## kevinf (19 Oct 2006)

*Re: Is it ok to accept rent allowance ?*

Thanks guys.
That's a big help.
Kevin


----------



## delgirl (19 Oct 2006)

*Re: Is it ok to accept rent allowance ?*

If you are considering letting to someone in receipt of rent allowance, it might be advisable to ask them to sign a waiver in order that the Health Board can pay the rent directly into your bank account.

That way you can be sure you'll get the rent.


----------



## tosullivan (19 Oct 2006)

*Re: Is it ok to accept rent allowance ?*



delgirl said:


> If you are considering letting to someone in receipt of rent allowance, it might be advisable to ask them to sign a waiver in order that the Health Board can pay the rent directly into your bank account.
> 
> That way you can be sure you'll get the rent.


I don't think they do that any more.  As above others mentioned, you cannot tar them all with the same brush, but I would still say that non social welfare tenants in general have more respect for your property.  Make sure you get references from previous landlords only and follow up with a call.


----------



## z107 (19 Oct 2006)

I know someone who is renting their house to RA tenants. The tenants are no bother at all, keep the house very tidy etc. 

The trouble is that the neighbours don't like it.


----------



## delgirl (19 Oct 2006)

*Re: Is it ok to accept rent allowance ?*



tosullivan said:


> I don't think they do that any more. As above others mentioned, you cannot tar them all with the same brush, but I would still say that non social welfare tenants in general have more respect for your property. Make sure you get references from previous landlords only and follow up with a call.


I have two landlord friends who have, between them, numerous rent allowance tenants.  The rent is paid directly into their accounts and the tenants all signed waivers to enable this.  Two of them are quite recent - April and May this year, so unless they've changed the rules in the meantime ....

They have absolutely no problems with their tenants.  Two of the properties are let to settled travellers and my friend says that they are probably some of the best tenants she has ever had.


----------



## DonKing (19 Oct 2006)

I had a property rented out to a rent allowance tenant for the last 3 years. A young girl with a child and of course the boyfriend stayed "occassionally"

During the course of the last 3 years I was quite happy with her but towards the last year I didn't bother inspecting the property. 

I don't think she actually ever cleaned the house in 3 years. It was filty. The child had hacked through wallpaper and managed to remove plaster from a wall. 

When I was renovating the house, neighbours approached me a mentioned that they had some dodgy friends calling to the house at times.

I'm now looking for non-nationals(eastern europeans) to rent to. I think they may show more respect for the property than a young girl who has the state handing it to her on a plate.

I know RA tenants are all different, but after spending every spare hour over the last number of weeks working on the house I've lost my appetite for RA tenants.


----------



## z107 (19 Oct 2006)

One other thing I'd like to point out, you might not have any choice but to accept rent allowance - depending on the location of your property.


----------



## rabbit (20 Oct 2006)

*Re: Is it ok to accept rent allowance ?*



tosullivan said:


> As above others mentioned, you cannot tar them all with the same brush, but I would still say that non social welfare tenants in general have more respect for your property.


 
Definitely.   After my last social welfare tenant I  never again will take one on....everything in the apt had to be replaced or repaired, and I mean everything.


----------



## Trustmeh (20 Oct 2006)

umop3p!sdn said:


> I know someone who is renting their house to RA tenants. The tenants are no bother at all, keep the house very tidy etc.
> 
> The trouble is that the neighbours don't like it.


 
Put me down as someone that rents to RA and am thrilled...going into second year hoping for a third.  Tenant has money paid direct and even pays the shortfall a year ahead of time!

You have to vet EVERY tenant - rich or poor, bad tenants are simply bad tenants.  But sure, id rather the rest of the landlords be bigots and leave the good RA tenants to me.


----------



## liteweight (20 Oct 2006)

> But sure, id rather the rest of the landlords be bigots and leave the good RA tenants to me.



I think this is a very unfair statement. Just because someone has a different experience to yours, and voices their opinion to that affect, does not mean they are bigots.


----------



## ninsaga (20 Oct 2006)

Had a RA tenant pnce for a short period... chanced his aram a few times & left me shortso I had to stay on top of it.Nevertheless he kept theplace in good order & never had any hassle.

Remember having a discussion with a property manager once who had 8 out of 10 properties that were RA.... she said that the RA tenants broke her heart... constantly chasing rent shortfalls & not keeping the place in order. 

So it's a mixed bag out there, there are plenty of non RA tenants who also treat the place like a dump... there are a few horror stories on AAM with people sharing their experiences.

Me.. I would accept a RA if I got good refs.

I'm not sure though if you have as the same rights to move them out if they cause problems. Also not sure with many of them if they can drum up the deposit required.

ninsaga


----------



## tosullivan (21 Oct 2006)

DonKing said:


> I had a property rented out to a rent allowance tenant for the last 3 years. A young girl with a child and of course the boyfriend stayed "occassionally"
> 
> During the course of the last 3 years I was quite happy with her but towards the last year I didn't bother inspecting the property.
> 
> ...


You must have had my tenant.... 

except her boyfriend was referred to as her brother in law.

They must think we're all stupid


----------



## Open_Window (22 Oct 2006)

Rent Allowance seems to be a dirty word. Unreasonably so.

I've been renting over 5 years and it was hard sometimes when the subject of Rent Allowance was brought up. It puts an added pressure when looking and engenders some very frustrating, bigoted responses from agents and landlords alike. 

Firstly, as a tenant you would be foolish not to rent a property that the "Lord" does not except Rent Allowance. For example if you ever find your self out of work for a period it is a great fall back. People don't factor this one in, tenants nor landlords.

Secondly, this idea that the "Lord" *excepts * rent allowance is a bit of an misnomer. The lanlord excepts nothing more in real terms the agreement that the rent will be paid. The tenant will recieve a cheque in which they can make up the majority of the rent but this is all behind scenes so the landlord is not involved in any extra way apart fromperioduically sigining a form. Now if the landlord is avoiding paying income tax or the revenue altogther then this I believe is the main reason why its not "excepted".

Thirdly, while Rent Allowance is identified with people mainly on the dole, . Often regarded People who are too lazy and get money for nothing think again. Just remember this, the Irish Government are paying vast amounts of Tax payers money into susidising landlords, so in essence lanlords are no better or worse than there tenants for enjoying this money complimetns of the Irish Tax payer at large.

The rent allowance scheme was originally set up by the Government (FG I think) as a temporary measure, but like all things it has become a integral  part of the economy and if it was pulled tomorrow the rental sector would essentially collapse. 

So remember Landlords, when you buy your investment property, be thankful the Government has a scheme that if needs be, will subsidise the majority of your income if you choose the right tenant. 

Oh yea and don't forget also you can write of a a lot of your refurb costs against tax if you are declaring. So how can you loose, when all you have to worry about it the "stereotype" of rent allowance tenants.

Someday you might need to avail of the service from the other side! 

Here is parlimentary debate,
*



			Minister for Social and Family Affairs (Mr. Brennan):    I want to refer to matters raised by Deputy Gilmore and others. There is a case for reforming rent allowance because the reality is that the State is paying approximately €400 million per year on a temporary basis to house 60,000 people. The questions arising from that issue are obvious. For example, would it be preferable to put that money into permanent housing? If one went to the local bank with €300 million per year, it would probably write a cheque for €6 billion, which would build a lot of houses. What, however, is to be done with the people who have fallen on hard times without notice? They have to be looked after in some way. I am certainly open to reforming rent allowance in some way but it must be done in a practical and sensible manner.
		
Click to expand...

*
http://debates.oireachtas.ie/DDebate.aspx?F=DAL20060214.xml&Page=1&Ex=971#N971


----------



## rabbit (22 Oct 2006)

Open_Window said:


> Oh yea and don't forget also you can write of a a lot of your refurb costs against tax


 
Big deal.   After my last rent allowance tenant, the apartment was as if a bomb hit it.   Broken appliances, doors off kitchen presses, writing on wall, had to get new floor coverings, furniture which was previously new had to be dumped, cracked tiles, holes in doors , broken door handles etc  etc

Having said that, I am sure there are some reasonably decent , clean and nice rent allowance people.





Open_Window said:


> if you are declaring.


  Everyone I assume declares nowadays.
Nice little dig all the same.



Open_Window said:


> So how can you loose, when all you have to worry about it the "stereotype" of rent allowance tenants.


 
lol


----------



## Trustmeh (22 Oct 2006)

liteweight said:


> I think this is a very unfair statement. Just because someone has a different experience to yours, and voices their opinion to that affect, does not mean they are bigots.


 
I do not believe it is an unfair statement.  Bigotry and discrimanation come from fear - fear of the unkown.  Many people advertise rentals with RA not accepted by default - they hardly even know what they are doing - they just do it cause they read others doing it.

My comment is about truth - I truely feel that there are plenty of good RA out there if you look for them - just as there are plenty of good tenants that dont use RA.  Just trying to provide truth to any Landlords interested.



			
				open_window said:
			
		

> Now if the landlord is avoiding paying income tax or the revenue altogther then this I believe is the main reason why its not "excepted".


 
Interesting theory - and it may be true. Would love to see revenue track the ads that say no RA with the landlords that advertise them.  The day is coming - the revenue will eventually go after non tax paying landlords.  personally i know more people evading tax than paying it.


----------



## liteweight (22 Oct 2006)

I'm sure there are many good rent allowance tenants. Nobody said there wasn't but as another poster said when a young woman with a child moves in, her boyfriend often follows. You can check her out all you like but you can't check him because you haven't been told about him!! She can't tell you about him or she'll lose her rent allowance.

Open Window a landlord who is not registered with PRTB cannot claim the interest on his mortgage as an expense against rental income. I know there are some landlords out there with no mortgage and do not pay tax on income but they run their own risks and I imagine are few and far between these days. Just as some from other walks of life do not declare income and some claim RA when they are no longer officially entitled to it. If saying RA tenants are not acceptable is bigotry, is tarring all landlords as capitalist and non compliant not the same thing in a different form. Being a landlord is a job of work like any other.


----------



## z107 (22 Oct 2006)

> Just remember this, the Irish Government are paying vast amounts of Tax payers money into susidising landlords.



This is incorrect. It is tenants who are being subsidised. The rent will stay the same, whoever rents a property. It's not the irish government doing the subsidising either, it's the Irish Taxpayers.


----------

