Rent arrears calculation
I've just found out that my tenants' HB has been reassessed, leading to a substantial overpayment. The tenants were in arrears already, although there is a deposit that will cover this.
The council have said that they will recover the overpayment over an extended time, but that's much longer than the tenancy so, if the tenant leaves in a few months (which I suspect they will), I will have to pick up the tab when they go.
Also, I don't think they will be able to afford the rent in the future so, even if they stay, they will probably just drift further into debt until it reaches 2 months (not counting the overpayment).
I'm trying to work out what the current arrears is.
Does it include the HB overpayment? It is repayable, but the council haven't asked for this back from me, although they will once the tenants leave.
Does it include the existing arrears? This is currently due but the deposit will cover it.
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