With the ever increasing unemployment figures in this country it is clear that more and more individuals will need to rely on social welfare assistance. Where tenants are concerned this takes the form of Rent Supplement. landlordsolutions.ie sets out below the issues which a landlord needs to be aware of when considering tenants claiming this supplement, what he needs to do to protect himself and what to do where a tenant is not passing on the money.
What to know
Rent supplement is a form of supplementary welfare allowance paid to people living in private rented accommodation who cannot provide for the costs of their accommodation from their own resources. In general, those who qualify are individuals whose only income is social welfare or HSE payments. The application for such assistance can only be made by the tenant (not the landlord) and such must be made to the Community Welfare Officer (CWO) at the tenant’s Local Health Centre.
The amount of rent supplement is calculated by the CWO and is the basic supplementary welfare allowance rate for the tenant’s circumstances minus €24 (which is the tenant’s own contribution). The rent paid to the landlord (i.e. rent supplement plus own contribution) must not be above the maximum rent level set for the county or area where the property is situated. The rent supplement is paid to the tenant weekly or monthly by cheque, electronic fund transfer or post draft, usually in arrears, and is then supposed to be passed on by the tenant to the landlord. It is worth noting that rent supplement will not be paid while housing needs assessment is being undertaken.
The claim form for this supplement requires the landlord to fill out the relevant section in the form already part completed by the tenant.
Fear of Misuse or Misappropriation
The supplement is paid to the tenant who is then obliged to pass this on to his landlord in fulfilment of rent owed. An application to have the payment made directly by the HSE to the landlord must be made by the tenant to their local CWO. This decision is completely at the CWO’s discretion and can vary from area and area. Payment directly to the landlord would seem an obvious solution, one which would resolve any fears of landlords that such funds would be misused or that any delays in payment are not genuine and are mere excuses of the tenant.
We would advise landlords to ensure that the CWO has agreed to make direct payments to him and he should make this a condition of the lease agreement. The landlord however must be aware that the decision of the CWO is what is influential in this regard as he/she authorises the payment.
What to do where this occurs
If the tenant is not passing on the rent to the landlord or has cancelled direct payment to the landlord’s account, the landlord should immediately inform the local CWO to prevent the possibility of misappropriation of funds. The CWO may decide to suspend this payment. When a PRTB Determination Order has been issued in relation to the case the landlord may be able to recoup these payments from the CWO. The PRTB has no formal role in this process so it is a matter for the individual landlord to speak directly with the CWO at their local health centre and the Department of Social and Family Affairs regarding rent supplement issues. landlordsolutions.ie advises that landlords retain copies of all paperwork and all contact details of the CWO.
This document contains a general summary of recent developments and is not a definitive statement of the law. Specific legal advice must be obtained before taking action based on the summary set out herein and landlordsolutions.ie take no responsibility for any loss or damage caused in reliance on the information herein.
