Renting to DSS

delain

when i moved into my house i was a 22 year old mum of three, and i have never given my landlord any gyp at all.

He asks for a guarantor, which is not unreasonable and when mine lost his job and pulled out he allowed me to remain on the basis that i have proved to be a hassle free tenant.

i would say that on the whole a few LHA tenants let everyone else down, and at least you know you'll be helping those who need it, as the flat i lived in before i found this house was dire, and the kids were forever ill, and i know people still in this situation.

Also the odd few 'dodgy' landlords (dave wells round here) take LHA and leave their properties in a shocking state because they no the tenants can't just up and leave, they've got nowhere else to go.

silvercar

G_M wrote:

By definition, tenants on DSS are not well off. That means more likelihood of their getting into financial difficulties.

Agree with the first part but not the second.

Many tenants on HB/ LHA are used to managing tight budgets.

In this recession, who is more likely to pay their rent, someone on benefits or someone who has affluent lifestyle commitments and suddenly finds themselves out of work?

socrates

real1314 wrote: »

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

Who said anything about switching?

My point was and is - there is a misconception that you cannot do anything about rent being owed by a benefit claimant before 8 weeks arrears have accrued - that is simply NOT true.
You can get the claim SUSPENDED.

Which is what I advised originally. If they are late even a day late get the claim suspended - if they pay you all fair and good you can get it restarted

You are also wrong on your second point - in my particular case I got the LHA suspended after my ex-tenant was 2 weeks late with her first payment. As she could not prove that she had repaid that amount to me the LA decided to pay the LHA to me directly as there was a serious risk that the LHA was not going to be used for its original purpose - or words to that effect.

The LA benefits officer (it was like it was her last mission in life for me not to get the benefit paid to me directly) hated that the Appeals Service found in my favour - as did the tenant - but as I had 'set things up correctly' in the first place they were both snookered.

I seem to remember that in Scotland they showed a lot more common sense in these matters - over £500 they had an option to pay the LL on the first payment - where they felt there might be a risk of misuse of funds.

As for my other benefit claimants - they pay like clockwork - every 2 weeks straight into my bank.

However it is a minefield!

shamrock64

Hi,
Im new to the forum this is my first post but i have been lurking for some months, however I really had to post this reply as this is a subject I feel strongly about,,,!!!

I myself am on housing benefit due to being a carer for my partner who is on DLA neither of us work but that doesnt at all mean that I dont pay my rent.
I have lived in my present private rented property for nearly 3 years and have never once missed a rent payment and have never once been late either.
The rent chq is paid to me and doesnt even cover all the rent that we have to pay we have to find an extra £146 per month and that is what we do as we know that otherwise we wont have anywere to live its a simple as that !
Just because a person works doesnt mean they are any more likely to pay their full rent and on time than I am, it basically boils down to how much that person values where they live and I do.
I am however looking to move back to the south east next year , and it will be a major acheivment if I manage that as 99% of landlords think I wont pay.
So to the OP I say, dont tar us all with the same brush, I pay and look after the property the same as or maybe even better than some one in employment so dont be put off renting to someone on Housing Benefit please.

BlameTheGame

If you are a new landlord or just not up to speed then i would advise against letting to a DSS tenant.

I personally stay away from them as ive been stung in the past.

socrates

shamrock64 wrote: »

Hi,
Im new to the forum this is my first post but i have been lurking for some months, however I really had to post this reply as this is a subject I feel strongly about,,,!!!

I myself am on housing benefit due to being a carer for my partner who is on DLA neither of us work but that doesnt at all mean that I dont pay my rent.
I have lived in my present private rented property for nearly 3 years and have never once missed a rent payment and have never once been late either.
The rent chq is paid to me and doesnt even cover all the rent that we have to pay we have to find an extra £146 per month and that is what we do as we know that otherwise we wont have anywere to live its a simple as that !
Just because a person works doesnt mean they are any more likely to pay their full rent and on time than I am, it basically boils down to how much that person values where they live and I do.
I am however looking to move back to the south east next year , and it will be a major acheivment if I manage that as 99% of landlords think I wont pay.
So to the OP I say, dont tar us all with the same brush, I pay and look after the property the same as or maybe even better than some one in employment so dont be put off renting to someone on Housing Benefit please.

And you are to be commended BUT there is a whole culture of people who do not do what you do and these are the ones that prey on inexperienced LL's (inexperienced with benefit claimants) - it is better for the OP to find out all the pitfalls and then decide.

Otherwise he would be here telling us - "an agent found me a tenant, they have not paid me any rent and now it is costing me £1000 to get them evicted as well as the £3000 I have lost in rent......"

missile

Pigmy wrote: »

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?

Don't do it :eek:

clutton_2

take each applicant on their own merits - benefit tenants come in many many shapes and circumstances - single mums, long term disabled, OAPs, - there are good and bad in all situations

as i said read up on landlordzone to find the worse case scenarios

Sharon87

I guess it depends on the tenant. Take someone straight out of uni (like me last year). I saved up 2K to move to London, rent was £380 a month. The LL had no problem as he knew I had the savings and I was going on JSA and HB.

If you do decide taking on DSS tenants, thoroughly reference them, get a guarantor and make sure they have enough money for deposit and first 2 months rent (in my experience it takes over a month for HB claims to get processed).

Good luck!

socrates

Sharon87 wrote: »

If you do decide taking on DSS tenants, thoroughly reference them, get a guarantor and make sure they have enough money for deposit and first 2 months rent (in my experience it takes over a month for HB claims to get processed).

This covers about 1% of claimants so good luck with that :T