Can I rent to DSS if I know the person ?

lynzpower

real1314

Id be really interested to see these as the LA I work for has often discounted living rooms, as in the example above, It would be fab to have a bit more leverage over LAs when families are really struggling to find space.

Lynz
xxx

drinky_2

This is interesting as my daughter finds herself stuck at the moment. She wants to buy a place for herself but can't really afford the mortgage on the 2 bed terraced house she wants. She has a baby and is currently living with me for now as relationship with father came unstuck. I thought about maybe buying the house as an investment and renting out to her but didn't think she would get any help from LA as we were close relatives. This thread sounds like I was wrong. What about her income does that figure in the equation? If LA would pay some of the rent she could afford the rest I'm sure.

seven-day-weekend

drinky wrote:

This is interesting as my daughter finds herself stuck at the moment. She wants to buy a place for herself but can't really afford the mortgage on the 2 bed terraced house she wants. She has a baby and is currently living with me for now as relationship with father came unstuck. I thought about maybe buying the house as an investment and renting out to her but didn't think she would get any help from LA as we were close relatives. This thread sounds like I was wrong. What about her income does that figure in the equation? If LA would pay some of the rent she could afford the rest I'm sure.

Unless the situation has changed since I rented to my son, you would have to be able to prove that you bought the property as an investment property.
I wouild check with the council first. Also be aware of what others have said: a two- bedroom terrrace house may be classed as too big and they won't pay the rent, although the flat my son lived in had two bedrooms and a living room and he lived there on his own. They only paid the amount he would have had to pay for a bedsit however. Again, it's worth asking about this.

Housing Benefit is means-tested so any income and savings will be takien into consideration.

lynzpower

drinky wrote:

This is interesting as my daughter finds herself stuck at the moment. She wants to buy a place for herself but can't really afford the mortgage on the 2 bed terraced house she wants. She has a baby and is currently living with me for now as relationship with father came unstuck. I thought about maybe buying the house as an investment and renting out to her but didn't think she would get any help from LA as we were close relatives. This thread sounds like I was wrong. What about her income does that figure in the equation? If LA would pay some of the rent she could afford the rest I'm sure.

As 7day weekend says, I guess you have to prove its an investment property, and you have to have a BTL on it, plus with that btl mortgage you have to have ( i believe 20%- 25% deposit) If she is entitled to HB now, then she will be if she lives in other rented accomodation.

clutton_2

""btl mortgage you have to have ( i believe 20%- 25% deposit) " - BTL mortgages most frequently require a 15% deposit.

I let several two bedroom houses to single parent mums (one lounge, one kitchen, two beds, 1 bathroom) and all of them qualify for very nearly the full market rental, and the Rent Office has assessed the properties as being very near market rent. Some mums are paying me £30 per month top up, some, none at all.

Maybe different councils have different views - you wont know till you ask.

lynzpower

i agree clutton, some councils seem to be sticking fiercely to the living room can be used as a bedroom.

real1314

lynzpower wrote:

real1314

Id be really interested to see these as the LA I work for has often discounted living rooms, as in the example above, It would be fab to have a bit more leverage over LAs when families are really struggling to find space.

Lynz
xxx

lynz,

in point of fact it's not the LA that really decides, it's the Rent Officer (which is now part of DWP). There's a book available in most WHSmith's - Housing Benefit Regs (or something similar) by Zebedee, Ward and Lister - very useful for quick reference for these sort of issues.

lynzpower

does that also apply when the LA is renting its own flats out ( sorry to have confused the issue OP)

Cheers for the tip, Ill get the book when I can find a few quid from somewhere

clutton_2

Another possibility which may help, and which i have done once or twice to help young folks, is to get the tenant to provide a "guarantor" (this will make them more attractive to a landlord) - ie. find a private rented house, and ask the landlord if s/he will accept them as a DSS tenant Provided you act as their guarantor - this is a legally binding contract, in the same way that a Tenancy Agreement is, and it means that if the tenant fails to pay the rent, then the landlord can go to the guarantor for the rent. I have never had to go to a guarantor yet, my tenants seem more frightened of dad's wrath then mine !!!! But, it does mean that if a tenant fraudulently claimed HB and the Council reclawed it back from the landlord, that the landlord can still go to the guarantor for that portion of the rent which has been clawed back. It has always seemed most unfair that landlords have to be the one to "pay the bill" if tenants defraud the system (if landlords have been in direct receipt of the rent that is). If this might help, i can provide you with a website and link for a Guarantor Form.

wish i had had an auntie like you !

good luck

B.A

Hi,
Been reading this post and liked the advice that was given so thought id post my similar problem on here. I am wanting to buy a house to let out to my mother who is getting HB. We have checked with the council and they are fine with paying HB on this basis. I have also checked with a mgt lender and i can take out a residential mgt and let it out to my mother no problem, but when i come to getting my own mgt the MRP on the let property will be taken from my income. I am aprehensive on whether i should take the residential mgt and risk a deduction from my income for my future mgt. If i take a BTL mgt i know my income should not be affected if the HB rental income cover the mgt MRP but i dont know any mgt lenders that accept HB payment for a BTL. I am also worried when i have bought the house the HB does not cover the mgt MRP and is my can not afford the excess top up. The council have told us they can not give any indication on what rent would be paid in any area we may choose as each house is assesed seperatley.

Can anyone give me some advice and guidance please!

Thanks.