renting to DSS

MrYorke

Hi

I've been a landlord for almost 2 years. Renting out a 3 bedroom house and I rent the rooms out individually.

I have 1 room free and this is the first time I have struggled to find a tenant. I've seen in the news that more and more rooms are being offered so competition is high.

I have just heard from someone interested, however, they are looking to rent as DSS until they find a job.

I have never rented to DSS (i guess because i've never been asked) but have heard comments that I shouldn't due to the risk of damage to my property and/or its contents. Duncan Bannatyne even says so in his book.

However, surely its not as bad as one would think....or is it?

I am open to the idea as i'm not prejudice and my best mate has been made redundant and he is paying his rent via DSS. Just want to get other peoples opinion.

I was thinking of providing a 3 month tenancy contract which would then continue month by month as the person interested is moving to Cardiff for better work prospects.

What do you think?

Thanks, MrYorke

david29dpo

I have 2 (respectable) working girls renting a house together. The place is a tip. I wouldn't let a dog in there at the moment. Dont judge.

estelle123

I was on income support many years ago,due to a divorce.I had to sell my home and rent a flat.I treated this flat as my own and kept it spotless.Please do not able people there are plenty of people who work that live like animals.Most people on DSS do not ant to be on it,treat everyone as an individual.

barnaby-bear

MrYorke wrote: »

Hi

I've been a landlord for almost 2 years. Renting out a 3 bedroom house and I rent the rooms out individually.

I have 1 room free and this is the first time I have struggled to find a tenant. I've seen in the news that more and more rooms are being offered so competition is high.

I have just heard from someone interested, however, they are looking to rent as DSS until they find a job.

I have never rented to DSS (i guess because i've never been asked) but have heard comments that I shouldn't due to the risk of damage to my property and/or its contents. Duncan Bannatyne even says so in his book.

However, surely its not as bad as one would think....or is it?

I am open to the idea as i'm not prejudice and my best mate has been made redundant and he is paying his rent via DSS. Just want to get other peoples opinion.

I was thinking of providing a 3 month tenancy contract which would then continue month by month as the person interested is moving to Cardiff for better work prospects.

What do you think?

Thanks, MrYorke

Do you have a mortgage on property? Most mortgage lenders forbid letting to LHA/HB claimants.

How much will the insurance increase? Most charge more for this type of tenant.

The issue is reclaiming the property as it's hard for these people to find accommodation and to be eligible for lots of social housing they are told to follow procedures that mean the LL has to pay for formal eviction (expensive and messy).

If LHA is paid directly (as is standard now) some tenants don't pass it on, or understand they have to pay any top up (the rates are low for young single people), or simply aren't very good at organising their finances. If paid directly to LL and claim is fraudulant - the money is reclaimed directly from LL.

Other tenants? If others all working and you install someone not working, they will be around house all day. Not what they signed up for. Bills/heating in winter increase and this can change dynamics. You may get tenant turnover increasing.

3 month tenancy. LHA will demand a tenancy - ASTs in law have to be an initial 6 months so you'd need to do it on some sort of holiday let/license to let - would LHA accept this?

LHA is paid in arrears and claims can take 3 months to pay - can the tenant afford this and/or can you wait.

3-bed house with the rooms rented separately is an HMO - I'm sure you are adhering to the regulations on this but you will need all your paperwork in order as LHA tenant will have back up of tenancy support officer who will string you out if fail to comply.

barnaby-bear

estelle123 wrote: »

I was on income support many years ago,due to a divorce.I had to sell my home and rent a flat.I treated this flat as my own and kept it spotless.Please do not able people there are plenty of people who work that live like animals.Most people on DSS do not ant to be on it,treat everyone as an individual.

There are some bad LHA/HB tenants and plenty of good ones. Many of the obstacles though arise from the processes, delays of payment and local authority guidance forcing formal evictions that make *on average* the potential costs involved and the risk higher. Nothing to do with the behaviour of the tenants.

tbs624

MrYorke wrote: »

HiI was thinking of providing a 3 month tenancy contract which would then continue month by month as the person interested is moving to Cardiff for better work prospects.

You may offer a 3 month tenancy as you describe but be aware that you may not seek repossession before an initial *6* months, except where there have been specific breaches of the terms of the TA.

There are often delays in getting LHA paid - can you afford to cover the period of that delay? Some times the LHA is less than the rent you wish to charge and you would need the T to cover the difference.

tbs624

barnaby-bear wrote: »

ASTs in law have to be an initial 6 months.

No there is no minimum, it's just that the T cannot be kicked out prior to the expiry of 6 months, except in the case of specific breaches.

As you say many mortgage providers will insist on a 6 month min.

barnaby-bear

tbs624 wrote: »

No there is no minimum, it's just that the T cannot be kicked out prior to the expiry of 6 months, except in the case of specific breaches.

As you say many mortgage providers will insist on a 6 month min.

Yes I was wrong, thanks. I knew that the tenant couldn't be made to leave in initial 6 months (which seemed to be the point of the 3 month suggestion - kind of defeats the point). Mortgage companies usually won't allow LHA/HB tenants anyway though but maybe OP owns it outright.

To be honest apart from the rent delay the likelihood hte other tenants won't like the dynamics changing in the house is one of the biggest risks. We see a lot of complaints about student/unemployed person moving into a house and being there all day ramping up bills etc....

MrYorke

thanks for all the replies on this. Has provided me with some good information.

Just to mention, i am certainly not judging the Tenant themselves, just heard of problems arising with payment from LHA which seems to be the case with the responses i have got.

Thanks to everyone for your help, much appreciated