Renting to DSS - is receiving payment simple or complicated??

willywinki

Hiya

I have a 2 bedroom terraced house, which i've rented out for 3 years. In the past i've self managed the rental, but i've moved an hour away so i've decided to go with a local agency.

The house was completely refurbished about 3.5 years ago, and i've never had problems getting tenants.

The house has been empty for nearly 2 montsh now, partly through choice as i wanted to paint through as it was looking a bit scruffy.

I've had a lot of interest from people on the DSS. I've never considered this before, as i've always specified tenants must be in full time work. Is it staright forward getting DSS payment for rent? Do the DSS have to approve the rental value for the house? Can you do DSS rental through an agent?

Thanks

nervousmother

Check with your mortgage/insurance no everyone allows DSS.

Dss tends to be paid in arrears when most rents are paid in advance, also housing benefit normally comes every four weeks yet the rent is monthly, most of the time it works out that the tenant is always in arrears but it does even itself out as you would receive 13 payments of housing benefit to cover 12 months of rent. Also be aware alot of the time tennants have to find a 'top up' to pay sometimes this is hard.

I have known cases where the following has happened:
1, the housing benefit paid direct to tenant. They spent it and did a runner.
2, The housing benefit paid direct to landlord. turned out tenant was not entitled to it so council took directly back off landlord.

Not all benefit tenants are bad, some are very good regular payers but do remember that there may be problems like those above.

socrates

nervousmother wrote: »

Check with your mortgage/insurance no everyone allows DSS.

Dss tends to be paid in arrears when most rents are paid in advance, also housing benefit normally comes every four weeks yet the rent is monthly, most of the time it works out that the tenant is always in arrears but it does even itself out as you would receive 13 payments of housing benefit to cover 12 months of rent. Also be aware alot of the time tennants have to find a 'top up' to pay sometimes this is hard.

I have known cases where the following has happened:
1, the housing benefit paid direct to tenant. They spent it and did a runner.
2, The housing benefit paid direct to landlord. turned out tenant was not entitled to it so council took directly back off landlord.

Not all benefit tenants are bad, some are very good regular payers but do remember that there may be problems like those above.

Re point 2 - HB now known as LHA - Local Housing Allowance is not paid to the LL unless there are extreme circumstances - ie tenant has social or economic problems - substance abuse, learning difficulties, long history of arrears etc - it is highly unlikely LA will pay directly to LL.

Have a look on LandLordzone.com lots of advice on there about renting to tenants on benefits - overall its NOT for an inexperienced (of dealing with benefit claimants) LL

koneka

I have seen a similar post on a buy to let forum at http://www.e1buytoletmortgages.co.uk. Have a look may be there is something useful.

Burlesque_Babe

koneka and BTL expert are the same person.........