Renting to DSS

socrates

clutton wrote: »

and now i insist on a new tenant opening a joint bank account for LHA with me - and that i have the authority to withdraw funds

I contemplated this but I was told the by Benefits Officer and her (stroppy cow) Manager - that this was "not allowed".

I would be interested if anyone has an official line on this - I know there are a few benefits officers on MSE

barnaby-bear

silvercar wrote: »

True, but it can also work in reverse. A private tenant may be hoping to get council accommodation and therefore be following the council guidelines on waiting til the last minute in order to be deemed involuntarily homeless. A benefit tenant evicted for rent arrears would be classed as voluntarily homeless, have no chance of being rehoused by the council so may know to sort themeselves out.

I was thinking of notice being given by standard section 21 - LL just wants house back/to sell - no arrears - advice is for tenant to stay put until goes to eviction as leaving is making voluntarily homeless. This is one reason so many LLs won't take kids because courts slower and more reluctant to evict and exactly the type of people who do need the stability social housing affords.
Regardless of personal opinions mortgage companies refusing to allow LLs to let to "DSS" skews the accommodation available and the dynamics.

foxy-roxy

My friend private rents and gets the money directly into her account from the council and she has got into trouble with it a couple of times, had to move out of the first house due to arrears and i think she is struggling with the 2nd.
She says it's too tempting having the money there in the account when she is skint and needs to buy food and stuff for her 2 kids.
It's tricky, but it really comes down to the individuals respect of paying.
I for one think rent and council tax are the 2 most important bills to pay, i can do without the rest.

silvercar

Regardless of personal opinions mortgage companies refusing to allow LLs to let to "DSS" skews the accommodation available and the dynamics.

Probably an unenforceable condition. What happens when a tenant loses their job and becomes eligible for LHA? Can the mortgage lender order their immediate eviction? No.

In any case there is no such thing as DSS, people can receive a variety of benefits according to their circumstances. If a mortgage lender wanted to exclude anyone receiving any benefit, then any child benefit claimant (ie anyone with a child in education or under 18) would be excluded. Even ignoring CB, working tax credits, child tax credits and childcare credits are all benefits.

silvercar

foxy-roxy wrote: »

My friend private rents and gets the money directly into her account from the council and she has got into trouble with it a couple of times, had to move out of the first house due to arrears and i think she is struggling with the 2nd.
She says it's too tempting having the money there in the account when she is skint and needs to buy food and stuff for her 2 kids.
It's tricky, but it really comes down to the individuals respect of paying.
I for one think rent and council tax are the 2 most important bills to pay, i can do without the rest.

But feeding your family and clothing your kids is difficult to avoid.

barnaby-bear

silvercar wrote: »

But feeding your family and clothing your kids is difficult to avoid.

Which is why people with kids and no/low income get LHA for housing/Council Tax Benefit for council tax. Child benefit as a universal benefit ***AND*** WTC/CTC/income support/JSA to cover living expenses other than housing or if income high enough are expected to use that.

barnaby-bear

silvercar wrote: »

Probably an unenforceable condition. What happens when a tenant loses their job and becomes eligible for LHA? Can the mortgage lender order their immediate eviction? No.

In any case there is no such thing as DSS, people can receive a variety of benefits according to their circumstances. If a mortgage lender wanted to exclude anyone receiving any benefit, then any child benefit claimant (ie anyone with a child in education or under 18) would be excluded. Even ignoring CB, working tax credits, child tax credits and childcare credits are all benefits.

The mortgage company's contract is with the LL - some LL's probably would serve section 21 if they knew an LHA claim submitted. I know "DSS" is not a real thing hence the *quotes* but a LL who is told explicitly in a market with jumpy credit is unlikely to willfully take on a "DSS" tenant against express instruction. Many LL's exclude smokers, pets, kids, self-employed, any one who they don't like the look of - it's a pretty unregulated market. Although many LL's are against tenant paid directly - if the LL is paid directly if the claim turns out to be fraudulant there was the potential for it to be reclaimed - from someone who had no knowledge of whether the claim was genuine absolute mess.

debrag

I have a savings account I transfer all my LHA money into till rent day. Kind of annoying that the extra I get £15 a week I have to use for rent due to my rent being monthly and my LHA weekly.

clutton_2

""I contemplated this but I was told the by Benefits Officer and her (stroppy cow) Manager - that this was "not allowed".

Anyone can open a bank account jointly with someone else.


When tenants complete their HB/LHA application forms and fill in the bank account details where the benefit goes to - it does not ask for a name of the account, just the account number and sort code.

silvercar

I wouldn't open a joint account with a tenant. I wouldn't want the risk of the credit reference agencies seeing it as a financial link and saddling me with the tenants credit history.