DSS tenants. Yes or No?

Ivrytwr3

Thanks all, that's made my mind up; no DSS!!

(or as the PC brigade now call them Housing Benefit claimants).

[Deleted User]

Don't forget - any HB paid to the landlord on behalf of the tenant - that later turns out to be fraudulently claimed by the tenant becomes repayable by the landlord! This also applies to amount paid out in error rather than fraudulently claimed.

i know of someone to whom this happened - and they had to pay back over 3 years worth!

If a landlord has been receiving this over a period of time, in good faith, they may end up with a nasty shock. The landlord has no way of vetting a claimant's entitlement to HB - and you would expect the HB office to do that.

For this reason, I would not let out to anyone claiming it.

dag_2

I would strongly advise you not to let to a tenant who will be relying solely on Housing Benefit to pay their rent - that is, unless you don't mind running the risk that your rent won't be paid. It can take up to three months to evict someone for rent arrears, and possibly longer if you don't know what you're doing. Of course, if your unit is in a low-demand area and would have probably remained vacant otherwise, then yeah, go for it. But if there is demand in your area, steer clear.

It's not that there's anything wrong with housing benefit claimants - it's just that so many things that can go wrong with housing benefit. As others have said, the tenant could decide to get HB paid to themselves instead of you, and there's nothing you can do to stop this (unless they're already two months in rent arrears). But that's not the worst thing that can happen - the worst is that the council will bill you for overpayments if they start working or their circumstances otherwise change.

On the plus side - if the council does bill you for overpayments, you are legally allowed to add it to the rent account and call it "rent arrears" - and if this results in arrears of more than two months, you can evict with two weeks' notice (plus allow another 14 days after getting possession order from the court, and then another few days for the bailiff's notice - so in total it's around a month to five weeks).

However, I'd strongly recommend that you don't get housing benefit paid directly to yourself as the landlord. If the tenant receives their own housing benefit and pays it to you as rent in the normal way, you cannot be held liable for overpayments. This means that theoretically, the maximum rent shortfall you'll face before you can evict the tenant will be three months - that's the same for any tenant, regardless of whether or not they receive housing benefit. But if housing benefit is paid to you directly, then you could be rebilled for all the housing benefit you've ever received for that tenant, even after the tenant has moved out. This could amount to several years' rent. Nasty.

The best advice is to get employment references from tenants - make sure it's a stable job, not just at McDonalds or something. If the tenant is out of work, or hasn't been in their current job very long, then try to get a property-owning guarantor, or ask them for six months' deposit. If they can't do this - then don't let to them (unless in a low-demand area where half the other houses in the street are boarded up). You should be doing this with all prospective tenants, regardless of whether or not they say anything about DSS or housing benefit.

If a housing benefit claimant has got property owning parents or relatives who will be their rent guarantor, then they're probably as safe as anyone else. But do not let to a housing benefit claimant who can't provide a guarantor.

Hope that helps.

mandi

mummytofour wrote:

I would, some tennants are good some are bad no matter how the rent is paid.

If you are worried maybe start her on a 6 month lease.

Hands up!! Im a DSS Tennant.. responsible mother of two, trained nurse, and estate agent.. Dont wreck my house, play loud music or smoke dope!!.. Oh Yes .. pay my rent on time too. Some people are forced into situations they dont want to be in... But please dont Tar ALL DSS applicants with the same brush.... :xmassmile

wigginsmum

The one time I rented out my flat, I had a DSS couple who trashed the place, threw stuff off the 5th floor balcony onto the cars below, put their fists through walls, and I had to evict them. Obviously not all DSS tenants are like this.

Jules

bamberbamboo

mandi wrote:

Hands up!! Im a DSS Tennant.. responsible mother of two, trained nurse, and estate agent.. Dont wreck my house, play loud music or smoke dope!!.. Oh Yes .. pay my rent on time too. Some people are forced into situations they dont want to be in... But please dont Tar ALL DSS applicants with the same brush.... :xmassmile

I agree, I was once getting benefit but I am now on the other side and rent out, my tenant is on benefits and I have had no problems in the last two years, it really is 6 of 1 & half a dozen of the other just do your homework and if using a dss try to find out as much about them as you can, their background/friends etc I live in a small area where everybody knows everyone so wasn't too hard. but the same trouble could happen with a full paying tenant.

deary65

nmiah786 wrote:

I would advise against it.

The local authority might not always pay all of the rent and the tenant might not want to make up the difference. I'm actually dealing with one London Borough which is paying me more rent then I would have got if I rented it out through estate agent.....but I was lucky!!!

The local authority can ask for the money they pay you as rent back at any time if they find out that the tenants status changes and they didnt inform the council.

The amount of benefit the tenant receives might reduce at time.

Its too much hassle for very little gain.

Dont symphatise with her, business is business and keep emotions out!!!

I don't think i have read so much nonsense for a long time.
Have any of you people ever heard of legal advice, as in solicitor!
The state provides a fund for housing benefit, which is distributed among the various housing authorities for those in need of help with their rent.It is part of the social contract between individual and the state.And is therefor a legal right.
There is no way the benefit authority can sue for the return of money,simply because they have no contract upon which to do so.

The tenant makes an undertaking with the local authorty,ie an indemnity,which is a collateral untertaking,ie: if i do not pay the rent the benefit office will. This is an agreement between the tenant and the benefit office,and does not concern the landlord at all.

To get any were near a court you would have to have some kind of agreement with the benefit office-in writing!And you would be very silly to do so.

nmiah786

deary65 wrote:

I don't think i have read so much nonsense for a long time.
Have any of you people ever heard of legal advice, as in solicitor!
The state provides a fund for housing benefit, which is distributed among the various housing authorities for those in need of help with their rent.It is part of the social contract between individual and the state.And is therefor a legal right.
There is no way the benefit authority can sue for the return of money,simply because they have no contract upon which to do.

The tenant makes an undertaking with the local authorty,ie an indemnity,which is a collateral untertaking,ie: if i do not pay the rent the benefit office will. This is an agreement between the tenant and the benefit office,and does not concern the landlord at all.

To get any were near a court you would have to have some kind of agreement with the benefit office-in writing!And you would be very silly to do so.

Can you please point me in the direction of where you base your information on. Show me the evidence and I will stand corrected.

If what you say is correct then why do the Housing Benefit Office keep sending me a letter every month (with the monthly cheque) which says that they can claim back any money they pay if it is later found that the tenant was paid too much benefit!!!!!!!!!!!!

deary65

If i sent you a letter asking you for money, would you give it to me! I don't think so.
Why, because you have no relationship with me,And its the same with the housing authority.
However,The best people to ask are the housing authorities themselves.The courts,I know, hold the law of contract to be almost sacrosanct,i.e nothing less than act of parliament "per se"can be employed to disturb it.Therefor ask them upon which legal authority they base thier demands. In other words what is your legal relationship with them. IT must be in writing or via act of parliament.

deemy2004

DO NOT RENT OUT TO DSS TENANTS !

In my limited experience of renting out to DSS Tenants - Dirty, distructive, vandalising scum !