Renting to DSS

Pigmy

Hi,

I have a couple of properties that I let out in Portsmouth. Until now I have always used an agent and they have steered me away from taking on DSS residents.

I'm thinking of renting directly next time round and have seen a lot of adverts for people on DSS looking for property in the region. Any advice? I don't want to end up with additional risk so would welcome any tricks of the trade that anyone has used to ensure they don't default.

Many thanks

BitterAndTwisted

Check with your local authority to see whether they pay the rent directly to landlords or to the tenants themselves who are then responsible for paying you. Don't forget that LAs pay rent in arrears not in advance so that might be a consideration for you. Some, if not all DSS claimants rarely have enough savings to find a decent deposit so that might be a risk for you as well.

One of the main disadvantages to having DSS tenants is that few, if any, LAs actually have any properties available themselves to rehouse so should the DSS tenants default or cause damage they can't pay for, the LAs will definitely encourage your tenants to remain in situ if and when you attempt to evict, even if you obtain a court order based on arrears

Bethankim

Hiya,

I found this link as one place to look, http://www.plymouthpath.org/landlords.html,

Plymouth city council also has a landlords forum.

Im on benefits and although i live in council accommodation - im aware im lucky, when i lost my house and then had to go bankrupt finding a landlord that would take me would be difficult.

Yes there can be pitfalls,but i guess there can be with any tennant. Im sure there will be esperienced landlords who can give you good avice.

In my area the bod depsit sceheme, works 2 ways the council guarntees the bod, and a housing officer works with the landlords and tennants to make sure the tennancy is a good one.

the council check references, and vet prospective tennants before putting them to the landlord.

G_M

By definition, tenants on DSS are not well off. That means more likelihood of their getting into financial difficulties.
I may be out of date, but it always used to be that tenants could opt in or out of having rent paid direct to the LL, so even if they started by having rent paid to you, when they hit difficulties, they could recind this and get the rent paid direct to themselves and then choose whether or not to pas it on to you or pay off some other debt....

Hence many LLs avoid DSS tenants, as well as for reasons given by Bitter above.

Oldernotwiser

LHA (used to be HB) now has to be paid direct to the tenant unless they're in a particularly vulnerable group.

Does you insurance allow you to let to DHSS tenants?

Pigmy

I haven't looked at the insurance angle - good point.

I had heard that the benefit went to the tenant not the landlord. It makes me nervous that once they are in, they are in and if they decide to route that benefit to someone else rather than me it could be a one way street into trouble.

I was going to ensure there is a depsoit of 1 month and that rent is paid in advance. In essence, that may mean that they have to provide 2 months rent out of their own pocket and if they can't afford to do that then I won't proceed. I know every case is different and we can't predict whether it will go well or not but does that seem reasonable?

Thanks everyone

BitterAndTwisted

Even if you can find DSS tenants with the equivalent of a month's rent as deposit plus a month's rent in advance do not forget that you cannot begin issuing proceedings for non-payment until they are 8 weeks behind with their rent. To a normal person that would suggest that the deposit needs to be greater than only one month's rent

socrates

BitterAndTwisted wrote: »

Even if you can find DSS tenants with the equivalent of a month's rent as deposit plus a month's rent in advance do not forget that you cannot begin issuing proceedings for non-payment until they are 8 weeks behind with their rent. To a normal person that would suggest that the deposit needs to be greater than only one month's rent

Please do not give advice to people when you are not 100% sure of your facts. You DO NOT have to wait 8 weeks

You can suspend a claim within a day of a tenant not paying you on time - as long as you have taken the correct steps previously. I could write an essay on this subject - but to be honest cannot be bothered.

For the OP look up my previous posts that relate to this subject - and if then you have any questions PM me.

Its possible to rent to benefit claimants and do well out of it as long as you know all the manoeuvres :rolleyes:

clutton_2

read up on www.landlordzone.co.uk where there is a specific forum for DSS/LHA tenants

real1314

socrates wrote: »

Please do not give advice to people when you are not 100% sure of your facts. You DO NOT have to wait 8 weeks

You can suspend a claim within a day of a tenant not paying you on time - as long as you have taken the correct steps previously. I could write an essay on this subject - but to be honest cannot be bothered.

For the OP look up my previous posts that relate to this subject - and if then you have any questions PM me.

Its possible to rent to benefit claimants and do well out of it as long as you know all the manoeuvres :rolleyes:

Whilst it is "possible" for LAs to switch HB/LHA payments to the LL even if they are 1 day late, I would suggest that there has not yet been a single case where this has been done. I would even suggest that there have been no cases where it has been switched before 8 weeks arrears have been accrued (although some cases are paid direct from the outset where vulnerability/likelihood of arrears can be shown).
I would go so far as to suggest that anyone considering a HB tenant should not give a tenancy to anyone who would qualify for their HB to be paid direct from the start, as there are highly likely to be other factors that would expose the LL to risk in the majority of these cases.
I would suggest that any LL looking at HB tenants should look at the person and consider their stability, age, attitude etc.
There is a world of difference between a clean, polite, well spoken, mature 30+ year old, even with a kid or 2 and an 18yr old with 4 kids and a dodgy attitude. (ok, some 18 yr old are fine too).

Oldernotwiser

Pigmy wrote: »

I had heard that the benefit went to the tenant not the landlord. It makes me nervous that once they are in, they are in and if they decide to route that benefit to someone else rather than me it could be a one way street into trouble.

That used to be the case but since the introduction of LHA, it has to go to the tenant.

Have you looked at the amount of LHA that someone could claim for a property like yours? You can find details of current rates on

https://lha-direct.voa.gov.uk/

If you let a property that's considered too big for your tenant, they won't be able to claim the whole amount and you'll really be in trouble.