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The purpose of a pre-tenancy determination is to decide the maximum amount of rent that the Housing Benefit office will use to calculate the amount of housing benefit that may be paid to a tenant. This amount should be established before any tenancy agreement is entered into, as any shortfall will have to be recovered from the tenant, who may not have the necessary funds – not something you wish to find out after the agreement has been signed! A Rent Officer will determine the acceptable rent for that type of property in that particular area as it relates to the tenant’s requirements. The Rent Officer’s determination may be less than the rent you are asking. In this case there are several options open; the tenant can find the difference out of their own pocket; you can reduce the rent you are asking; the tenant can apply for a DHP or Discretionary Housing Payment (a payment towards housing costs which is available depending on the tenant meeting certain criteria and which is awarded at the council’s discretion, but which can make up the difference up to the total rent you are asking); the tenant can appeal the rent officer’s decision by contacting the council’s customer services department who will advise on the details of making an appeal; a combination of the previous to your and the tenant’s satisfaction. It’s just worth pointing out that appealing the Rent Officer’s decision is quite risky, as Rent Officers have been known to come back with a lower rent on appeal! DHP awards are also subject to budgetary limits; when the money runs out no more DHPs will be awarded! Also there is no right to appeal the council’s decision not to award a DHP, but the tenant can ask for them to reconsider the application. A prospective tenant applies for a pre-tenancy determination by filling in a form which is available from the Housing & Money Advice Centre on Fish Street or the One Stop Shop at the Guildhall. It requires the landlord’s signature and must be returned to the Housing Benefit office.
Article Source: http://www.europe-property.org/articles
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