DSS - looking for private let question

Morglin

Oh right - I was just a bit puzzled by it all.

I would have thought, though, with the state of the economy and security of jobs, perhaps those entitled to housing benefit might be a safer bet than someone that starts off working and then loses their job and has to start the HB process from the beginning?

Lin

netgear11

jmt wrote: »

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.

Wish more LL's were like you !

socrates

Every Local Authority will have a Private Sector Leasing Team - they will have a scheme called - with LL's that have registered - this may also help you in that you will not need to be a Guarantor

The Rent Deposit Guarantee Scheme



It has been set up to help homeless applicants who are prevented from finding somewhere to live because they are unable to raise the required deposit in advance for rent or against possible damage.


It is also hoped that the introduction of this initiative will encourage the participation of local landlords and thereby expand the use of private rented accommodation to meet families' housing needs.
What is the Rent Deposit Guarantee Scheme?

The principle behind the rent deposit guarantee is that the Council, before the commencement of the tenancy, will indemnify participating landlords against damages or rent loss up to the equivalent of one months rent. In exceptional circumstances the Council will also consider providing a deposit as an alternative to a guarantee.
What costs are covered under this guarantee?

The scheme will allow the landlord to submit a claim once the tenancy has ended and where the following situations apply.

• Rent arrears accrued during the tenancy up to a maximum of one months rent or
• Repair or clearance costs attributable to the tenant's neglect up to a maximum of one month's rent.
  
  The maximum payment under the guarantee is limited to the equivalent of one month's rental.

Who can benefit from the scheme?

The scheme is specifically designed to assist homeless applicants, who are unable to raise the initial deposit to secure the tenancy of a property.
However, the rent deposit guarantee will only apply to accommodation where both the tenant and landlord have agreed to stick to the terms of the scheme. An agreement will need to be signed by both the landlord, the tenant and the Council.

poppysarah

Speak to the council - ensure you're all registered right for council housing (always worth being on the waiting list) and ask if they have a list of approved DSS landlords.

clutton_2

As a LL i have only once accepted a Bond tenant and then i had to renegotiate the contract with the Senior housing guy

""
Rent arrears accrued during the tenancy up to a maximum of one months rent or
Repair or clearance costs attributable to the tenant's neglect up to a maximum of one month's rent. ""

i would not have signed this - the law allows a tenant to be 8 weeks in arrears before a landlord can issue a section 8 and apply for possession - so the LL would be very poorly served by this agreement.

Councils do not have a standard BOND agreement, they vary throughout the country, and so i advise that you get a copy and read it before even thinking about offering a tenant a tenancy with this opportunity.

one council i deal with wanted the agreement to last only for 6 months - and when i pointed out that the ONLY time a deposit was needed was when the tenant left and that i would not sign a 6 month period, but needed an open-ended agreement, they reluctantly agreed.

i am now asking benefit tenants to open a new and separate bank account for their housing allowance to be paid into - and many prospective tenants understand my need for this

honesty is always the best policy

Jowo_2

Morglin wrote: »

Oh right - I was just a bit puzzled by it all.

I would have thought, though, with the state of the economy and security of jobs, perhaps those entitled to housing benefit might be a safer bet than someone that starts off working and then loses their job and has to start the HB process from the beginning?

Lin

I can see that point of view but many landlords prefer working tenants and shun benefit claimants, full stop. There is always a risk that tenants lose their jobs at any point but overall, they are perceived to be a less risky group to let properties out to compared with claimants.

I think the theory is with employed tenants that if they lose their jobs, they are motivated to find a new one and not build up arrears which will affect their credit rating. In addition, the landlord would have built up a relationship with them over the course of the tenancy and would be able to determine that they are reliable and the tenancy is suitable to continue. Should a working tenant get into arrears, there's more chance of a landlord getting redress through the courts, through an attachment of earnings for example.

In comparison, it is usually a waste of time for landlords to pursue arrears with tenants that don't have any income and who sometimes have nothing to lose with getting a poor credit rating so that's no deterrent.

One of the main sticking points is the 'gate keeping' policy of local councils which I've outlined before whereby housing benefit claimants are seen to be much harder to evict than a working tenant because the council will advice them to stay put when the landlord serves notice until a court order has been gained.

You can put it down to prejudice, good business practices or an unfortunate outcome of poor state policies, but these two groups of tenants, employed and non-employed, are treated quite distinctly by many landlords.

socrates

clutton wrote: »

i would not have signed this - the law allows a tenant to be 8 weeks in arrrears before a landlord can issue a section 8 and apply for possession - so the LL would be very poorly served by this agreement.

You would not allow a tenant to be 8 weeks in arrears - you can report that they are in arrears as early as 3 weeks - the claim will be suspended - and if proved that they are unreliable or likely to continue to default on their payments the LHA will paid directly to the LL from there on (until the arrears are cleared - which is highly unlikely)

Secondly in a number of the London Boroughs - there is a financial incentive for LL's subscribing to this scheme - so in essence you will get a minimum of 2 months security - made up of deposit and incentive.

Its not for everyone BUT if you have your wits about you, are aware of the regulations and find a decent tenant - there is little difference between a private let and a let to someone claiming benefits.

theartfullodger

Toady:

Do you have a copy of the council priority housing system (see..
http://www.direct.gov.uk/en/HomeAndCommunity/SocialHousingAndCareHomes/ApplyingForACouncilHome/DG_10021153
)

I'd go through whatever the council's allocation/prioritising system is and see if there is, perhaps, something you forgot to mention to the council. e.g. If their allocation system gives extra points to people with, say, some medical condition you didn't realise was relevant...


Beware, the council priority systems vary by council and can be as simple as "when you went on the list" so this approach may not help.

Cheers!

Lodger

Nosht

Can you not take out a private rental in your own name, charge your daughter a rent for "living" in your existing flat which she could then claim from DSS, then let daughter live in the new rental place?You will still be staying in your old home & she will have more room & as long as rent is paid then no harm done.Regards,N.

Jowo_2

Nosht wrote: »

Can you not take out a private rental in your own name, charge your daughter a rent for "living" in your existing flat which she could then claim from DSS, then let daughter live in the new rental place?You will still be staying in your old home & she will have more room & as long as rent is paid then no harm done.Regards,N.

I could be getting muddled by your suggestion which I think means a switch of properties and the parent as intermediary landlord but I disagree - housing benefit will not be approved relatives acting as landlord and tenant if it is considered to be a contrived tenancy.

It also cannot be paid to a landlord whose relatives live with them in the same property. I imagine that housing benefit is supposed to go the tenant at the address where they hold the tenancy and are also supposed to actually reside there as part of the condition of its receipt.

Landlords are very averse to finding out their tenants have then sublet their tenancies to other people, and particularly if they operate a policy of not considering tenants on benefits.