Tenants may be in receipt of housing benefit contributions to make up some or all of their rent payments. The process for recording benefit rent payments is outlined below, with links to more detailed steps.
- Set up the tenancy to expect a benefit contribution
- Record payment from the benefit authority
- Allocate benefit payments to relevant tenancies
Set up the tenancy to expect a benefit contribution
Firstly the tenancy must be set up to expect a benefit contribution towards rent. This may be done when adding a tenancy if the details are known at that stage, or they may be updated afterwards. It is often the case that even if the agent knows a benefit payment will be involved, the actual values are not known at the outset so the tenancy will have to be updated retrospectively.
Record payment from the benefit agency / local authority
Typically the payment from the benefit agency (in Northern Ireland) or local authority (in the rest of the UK) will be made to the managing agent in bulk, comprising various amounts relating to other tenancies. You should first record this bulk benefit payment and then allocate it in various amounts to the relevant tenancies.
Allocate benefit to relevant tenancies
Benefit payments need to be allocated from the overall total to the individual tenancies specified on the associated schedule. These allocations will be processed in a similar way to tenant payments in that they are marked off the rent balance (benefit element) and an appropriate management fee is applied. You can view a transactions details to see how it has been allocated.