Has anyone dealt with management costs that have been included as eligible rent for HB directly to the LA providing temporary accommodation through the private sector.

The LA secures the property between the tenant and landlord creating an AST. The tenant claims HB this is then paid directly to the housing options team at the LA and held in a rent account system. The LA pays the landlord monthly in advance from the rent account system. We are concerned because the Landlord has a tenancy agreement with tenant noting a contractual rent amount and then an additional amount is also paid for management costs directly to the LA. We have been advised that HB never verify the tenancy agreement and just accept the figures given by the LA!

I believe that things like management costs which could count as services or even just part of the tenants rent are arguable. In either case they are eligible for HB.

As an RSL are provide several different types tenancy agreements to the LA for HB purposes, and to hear that they do not check the services is quite shocking. What would HB say if they found out they were paying for an ineligible charge?

Yes, of course they would want the HBOP!