Should I take on DSS as tenant for by BTL?

clumsycloggs0305

We are planning on renting our 3 bed semi and moving to a bigger house (as per my other threads), and have today advertised on gumtree. I have received a call from a lady with 2 kids who is a DSS person. I have no idea how this will work, though she explained that the local council will pay most of the rent and she will top up the difference. She does not work but has a partner who will move in as well, and he works. She is coming to view our house tomorrow. How should I vet this family and should I consider them as tenants or not. She wants long term let 1-3 years...nice to have tenants in for that long but will they go when I want them to?

We are so new to all this and are embarking on our 1st buy-to-let (or let to buy), and are totalling confused as to the best way to approach this. I am also looking to let through letting agents, so which method would be better and safer?

All advice greatly appreciated, thanks

jonesMUFCforever

First thing to consider is - it's your house and therefore it's your choice whether to accept DSS or not.
I would definately not let sign a long lease (is standard 6 months? which can be rolled over to each side's satisfaction?). How do you know that they will not trash the place?

The interesting thing here (and she may have shot herself in the foot!) is; if she is living with a partner who is working is she eligible for housing benefit??
Guess who would have to pay it all back if it was found to be a fraud case? Yep you would! You would then have the pleasure of trying to pursue her for unpaid rent or suing her. I do not fancy your chances.

My gut instinct here is to stay well away but only you can make that final decision.

robwend

everyone will try and put you off doing this and for many reasons,they have done it themselfs and have had the late payments off council<it happens>the neighbours wont like it for a guess>worried about house prices lowering ,lol,and someone on here said something that was important to remember is your not doin them a favour this is buisness and dont go all soft on themwith the sympathy bit. i personally would rent to dss, i was a single mother for 10 years and im a right posh old bird!!<i now live in the private sector> lmao

silvercar

A friend rents to a DSS tennant. No problems with the rent as the council pay him direct. Very grateful tennant only to happy to have a roof over her head with young baby, whereas private tennants have been heard to call landlords out to change light bulbs.

Meet her and go with your instinct. Insist on a deposit which they will probably have to find themselves. Do take references.

clumsycloggs0305

well, just to update..indeed the DSS tenants came round this morning, and they loved our home (which will be let out eventually). ITS OUR HOME, SO ITS BOUND TO BE NICE!!! They really liked it and said it was much better than others they had seen. Having read the replies to my post and have decided not to pursue with them. They are anxious for a call, but i told them that i will be touch within a week to let them know...

robwend

if you have made your mind up not to take them on put them out of there misery. give em a bell. xxxxx

philproc

Just an aside, but some lenders will not lend on DSS tennants. Something to check if you are getting a mortgage.