Four tips for dealing with tenants on Universal Credit


Written by: Mary-Anne Bowring 07/04/2020
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Are Your Tenants on Universal Credit?

Landlords may need to get used to letting to tenants who claim Universal Credit. Many landlords have historically avoided renting to tenants receiving state benefits due to concerns over rent arrears.

Is It Legal to Refuse Tenants on Universal Credit?

While it is not strictly illegal to refuse tenants claiming Universal Credit, it could be viewed as discriminatory if challenged in court. Legal risks may arise, and landlords who have never rented to benefit claimants might now find themselves in that position.

What Should Landlords Do in This Situation?

With nearly one million people applying for Universal Credit due to COVID-19, landlords should consider key actions. Communication and support for tenants are crucial during this time.

Consider Rent Reductions or a Rent Holiday

Landlords may want to consider a rent reduction to match the housing element of Universal Credit. In some cases, offering a rent holiday can help tenants who are struggling financially during this difficult period.

Provide Required Documentation for Universal Credit Applications

If your tenant has applied for Universal Credit due to COVID-19, provide a letter verifying the rental amount, property address, and tenancy commencement date to help them qualify for the housing element of Universal Credit.

Alternative Payment Arrangements (APA) and Support

Landlords should discuss Alternative Payment Arrangements (APA) with tenants to ensure Universal Credit payments are sent directly to them. For tenants in arrears, landlords can also apply for Third-party Deductions to help reduce the arrears.

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