DSS - looking for private let question

toady

Am hoping someone can advise on this.

I own my small flat, and my daughter and her 10month old son have lived with me since baby was born. However, now we all need some more room and space. She has been told she faces at least another 2 year wait on council housing list, so is looking at private lets. Most of the flats for let here seem to fall under one lettings agency, (which baffled me as they are advertised by different companies, but still) and I phoned to ask if they took DSS tenants, and they said most of their landlords wouldn't entertain the idea (which seems bizarre when the town is cluttered up with unlet flats!).

My question is: is there any way I can stand as some sort of guarantor for her, but she could rent the flat in her name? Is that more likely to be favourably looked upon, than her rolling up as a single mum on benefits? And of that is a possibility, how would it work and what costs would be involved?

I've enough on my plate getting son through uni and paying my own mortgage- I can't pay rental for her as well, much as I would like to be able to.

Any thoughts would be gratefully welcomed, thanks.

pinkshoes

If you speak to the agents and tell them you'll be guarantor for as long as she's letting the flat, then they'll probably agree. If she defaults on the rent, they WILL chase you for payment...

Have you looked in shop windows for people advertising properties for let and not using a letting agent?

KeepYourChinUp_2

Try asking your local council for a list of accreddited LL and check your local paper (if you get one). Most private LL wont rip you off for charges like the LA's do

Planner

A large number of BTL lenders dont allow DSS tenants, that could be a further issue you may come across.

Jowo_2

toady wrote: »

...I phoned to ask if they took DSS tenants, and they said most of their landlords wouldn't entertain the idea (which seems bizarre when the town is cluttered up with unlet flats!)...

.. is there any way I can stand as some sort of guarantor for her, but she could rent the flat in her name? .. I can't pay rental for her as well, much as I would like to be able to...

The comprehensive number of reasons why the majority of landlords won't accept benefit claimants are not bizarre, as disappointing as it must be to those that are affected. Many landlords prefer to minimise their exposure to risky tenants even if it means leaving their properties empty until working tenants are found. These reasons are discussed here

http://www.landlordzone.co.uk/forums/showthread.php?t=18139

Yes, you can offer to be a guarantor which will improve your daughters chances but you could be subject to a credit check yourself as part of the acceptance criteria and some landlords prefer the guarantor to be property owners. The tenancy would be in your daughter's name as she is the tenant and you would be responsible for any costs associated with the tenancy if your daughter does not pay.

If your daughter defaults on the rent (even caused by late LHA payment) or causes damage (even by accident), the landlord will expect you to pay in full if your daughter cannot.

Therefore, if you are seen as not being able to afford to do this, you may be rejected as a guarantor and if do you become a guarantor, it is not going to be of much relevance whether you can afford it if the landlord ever takes to court to enforce payment.

jmt

As a LL, I would be be very happy to have a tenant like your daughter with you as guarantor.

However, some mortgages whether BTL or residential with permission will not allow DSS tenants in the terms of lending. I have my BTL mortgage with the Skipton BS and my residential mortgage with YBS and neither allow DSS which is a shame and LL would need to own the property outright.

Why not try the LA as my LA always rings me to discuss a possible new tenant. I have told him that I will consider everyone - I like to look at each situation as it comes and don't tar every DSS person with the same brush.

superfran_uk

Jowo wrote: »

The comprehensive number of reasons why the majority of landlords won't accept benefit claimants are not bizarre, as disappointing as it must be to those that are affected. Many landlords prefer to minimise their exposure to risky tenants even if it means leaving their properties empty until working tenants are found. These reasons are discussed here

http://www.landlordzone.co.uk/forums/showthread.php?t=18139

Yes, you can offer to be a guarantor which will improve your daughters chances but you could be subject to a credit check yourself as part of the acceptance criteria and some landlords prefer the guarantor to be property owners. The tenancy would be in your daughter's name as she is the tenant and you would be responsible for any costs associated with the tenancy if your daughter does not pay.

If your daughter defaults on the rent (even caused by late LHA payment) or causes damage (even by accident), the landlord will expect you to pay in full if your daughter cannot.

Therefore, if you are seen as not being able to afford to do this, you may be rejected as a guarantor and if do you become a guarantor, it is not going to be of much relevance whether you can afford it if the landlord ever takes to court to enforce payment.

It says above that she is a property owner, therefore should not have a difficulty with this.

toady

many thanks for all your input! Lots to think about there... am v grateful for your expertise.

time to go and reflect, thanks a lot.

jadex

toady wrote: »

I phoned to ask if they took DSS tenants, and they said most of their landlords wouldn't entertain the idea (which seems bizarre when the town is cluttered up with unlet flats!).

Things are changing.
If you look at righmove website you can find more and more such statements (2 last ones):

Key features:

• Refurbished throughout
• Good sized accommodation
• Close to public transport
• Fitted Kitchen
• Garden with patio
• Gas Central Heating

• Wood flooring
• Housing Benefit accepted
• DSS accepted

I don't know if it is ok to post links on here, but the above property is located in London, SW19 area. It is 4 bedroom house costing £1500pcm, rented via LA, just refurbished. I doubt all the job was done with DSS tenants in their minds....

Morglin

I don't really understand this 'no DSS'.

Because we wanted a swift move back to London from Sussex, DH and I explored the possibility of private lets.

He's retired, getting a state pension and DLA, I'm on permanent IB and DLA, we both get private pensions - and yet, although I told all the Letting Agent's our circumstances, they told us it wouldn't matter a bit - in fact, we were pestered with them keep ringing offering us viewings all over Chislehurst and surround - there must be a surplus of landlords around here!:rolleyes:

Our income is too high to claim Housing Benefit, and we could supply excellent references, so perhaps that makes a difference?

Not only that, but when we went to view, they said the rents in most of them were negotiable.

We didn't proceed, because a HA came up with this place that suited us much better, as it had already been adapted for disability etc., and, to be honest, I wasn't that impressed with the condition of some of the lets, for the rent they would be charging.

But, even if it says 'no DSS' it's probably worth asking anyway.

Lin

Jowo_2

Morglin wrote: »

I don't really understand this 'no DSS'.

....

He's retired, getting a state pension and DLA, I'm on permanent IB and DLA, we both get private pensions - and yet, although I told all the Letting Agent's our circumstances, they told us it wouldn't matter a bit - ...

Our income is too high to claim Housing Benefit, and we could supply excellent references, so perhaps that makes a difference?

...

But, even if it says 'no DSS' it's probably worth asking anyway.

Lin

I agree that if it says no DSS, it's probably worth asking but only if the tenant can offer something that reduces the risk to the landlord, such as a guarantor or proof of private income, like yourselves.

My assumption (and it is a guess) is that landlords are also more likely to be sympathetic and change their policy for those claiming DLA or receiving state pensions.

Some landlords won't entertain LHA because there is a shortfall between the level offered and the market rent or if the tenant doesn't pass on the rent, there's little the landlord can do about addressing it. Also, it is paid in arrears and the initial payment can take an age to come through.