Help - Becoming a landlord

jordan_gibson

In another thread (in the familes bit) I posted that me and my partner have slpit becuase she slept with the next door neighbour.

Long story short, we are searching round for somewhere for her and my 2 year old lad to live. She does not work so is going to get housing benefit but virtually every property we try and rent says NO DHSS. Why is this?? Surely it is guaranteed money from the council??

Any way, as a way round this I have actually been thinking of buying a house on my own and then renting it to her as my tennent - hence making me the landlord. Her housing benefit will cover the mortgage so she will have someone safe and sound to live and knows that her landlord will not kick her out!

My question is, becuase she is my ex-partner, and I officially own the house, will the council/benefits people look upon it as a scam?? I just don't want it to effect her other benefits in any other way.

Thanks

dunstonh

She does not work so is going to get housing benefit but virtually every property we try and rent says NO DHSS. Why is this?? Surely it is guaranteed money from the council??

In the past it used to be ideal to get DSS. However that was when the council paid the money direct to the landlord. Now it goes to the claimant who then pays it to the landlord. Thats the theory of it but many then do not pay that money to the landlord and the landlord then suffers the hassle of having no rent for 6-12 months and no doubt a deteriorating property as DSS tenants are not exactly known for looking after other people's property.

My question is, becuase she is my ex-partner, and I officially own the house, will the council/benefits people look upon it as a scam??

If married, yes they would. Unmarried is less likely but if they know about the relationship, they would be foolish not to investigate it.

If you do buy it, you would also be reducing what you could buy on a residential mortgage for yourself. Just in case you needed higher lending limits for yourself.

clutton_2

""However that was when the council paid the money direct to the landlord"" - in all but three areas of the country which are undergoing trials, it is still possible for the rent to be paid to the landlord directly as long as the tenant signs the appropriate box in the housing benefit application form, and the landlord completes his/her bank details. There is often a wait of 2-3-4- months before landlords get their rent, but it is backdated. Alos HB rarely pays the full market rent on behalf of tenants, and some tenants cannot pay a topup, hence your profit goes right down.

However, letting to members of your own family is a very tricky subject indeed.

if you can prove that you bought the house originally for a BTL and have had other tenants in it in the past, it can be possible to get HB for a family member - otherwise, as you rightly suggest, councils see it as a possible scam.

nrsql

Isn't the problem with having hb paid to the landlord that if the tenant is found later to not be eligible (e.g. start work and don't declare it) that the hb will be claimed back from the landlord and you can be stuck trying to get many months arrears out of the tenant?

southernscouser

Jordan, I read your other thread but didn't post!

I can't answer any of the questions you have but have some for you that may help in your decision! You don't need to post the answers on here. Just thought it might help! (basing this all on the assumption that you go ahead with your proposal).

How would you feel if your ex moved the person she had the affair with into the property?

Even if you told her she is breaking her agreement but she refused to abide by it would you then evict her and your son?

What would happen if 3 years down the line and your littl'un is at school and she got a job, and no housing benefit, but she stopped paying you? And could you afford to be paying that mortgage and presumably your own?


I think what you doing is very admirable. You would clearly do anything for your boy but your ex could end up taking advantage of the situation! :think:

BobProperty

You missed out a couple of drawbacks

clutton wrote:

""However that was when the council paid the money direct to the landlord"" - in all but three areas of the country which are undergoing trials, it is still possible for the rent to be paid to the landlord directly as long as the tenant signs the appropriate box in the housing benefit application form, and the landlord completes his/her bank details.

and the tenant doesn't go back and change it afterwards so it gets paid to the tenant.

clutton wrote:

There is often a wait of 2-3-4- months before landlords get their rent, but it is backdated. Alos HB rarely pays the full market rent on behalf of tenants, and some tenants cannot pay a topup, hence your profit goes right down.

and every time the tenant gets caught working, gets fined etc. the HB stops or their benefit gets reduced so they've less/no money to pay the landlord.
Before anyone says all HB tenants aren't like that, I agree they aren't, but what I've said has happend to either me or other landlords I've met.

pboae

nrsql wrote:

Isn't the problem with having hb paid to the landlord that if the tenant is found later to not be eligible (e.g. start work and don't declare it) that the hb will be claimed back from the landlord and you can be stuck trying to get many months arrears out of the tenant?

I don't know if it is still the case, but it definitely used to be that way. We got stung with it about 8 years ago. I won't let to DSS anymore without a guarantor who can actually pay.

clutton_2

i have several HB single parent mums in my properties, and never have any issues about payment.

i also thikn that southernscouser raised some very interesting and thought provoking points.

""Isn't the problem with having hb paid to the landlord that if the tenant is found later to not be eligible (e.g. start work and don't declare it) that the hb will be claimed back from the landlord and you can be stuck trying to get many months arrears out of the tenant?""


yes this is true, but, you have to judge who you rent to, and as others have said, i have guarantors for several of my tenants on HB, but not all. i have an especially carefully written Tenancy AGreement which may protect my interests - i have not tested it in the courts yet.

jordan_gibson

clutton wrote:

i have several HB single parent mums in my properties, and never have any issues about payment.

i also thikn that southernscouser raised some very interesting and thought provoking points.

""Isn't the problem with having hb paid to the landlord that if the tenant is found later to not be eligible (e.g. start work and don't declare it) that the hb will be claimed back from the landlord and you can be stuck trying to get many months arrears out of the tenant?""


yes this is true, but, you have to judge who you rent to, and as others have said, i have guarantors for several of my tenants on HB, but not all. i have an especially carefully written Tenancy AGreement which may protect my interests - i have not tested it in the courts yet.

Thanks for the replies guys.

It's nice to have a landlord reply Clutton. We have been finding that most rentals will not accept DHSS so we really are stuck for places to look. To be honest, if I was a landlord I could see their point becuase you want as little risk as possible on your investment. It is for this reason that I was going to try and go down the route of buying a place and then letting my ex-partner rent it off me. I;m not sure how the benefits people would see this though????

ps... If you are the game yourself Clutton do you know any good landlords in the Rotherham area that may consider DHSS if I was behind as a guarantee??? This goes for anyone else reading this as well.

jordan_gibson

southernscouser wrote:

Jordan, I read your other thread but didn't post!

I can't answer any of the questions you have but have some for you that may help in your decision! You don't need to post the answers on here. Just thought it might help! (basing this all on the assumption that you go ahead with your proposal).

How would you feel if your ex moved the person she had the affair with into the property?

Even if you told her she is breaking her agreement but she refused to abide by it would you then evict her and your son?

What would happen if 3 years down the line and your littl'un is at school and she got a job, and no housing benefit, but she stopped paying you? And could you afford to be paying that mortgage and presumably your own?


I think what you doing is very admirable. You would clearly do anything for your boy but your ex could end up taking advantage of the situation! :think:

Thanks sothernscouser. You have raised some very good points that I had never even thought of! Eventually, my ex will get together with someone else so I was going to try and distance myself from the day to day running by bringing in a company to collect rent etc etc. Obviously, this means less income (and may even mean me losing a few quid) but I would have the piece of mind that my son had a roof over his head. One major problem would be if me ex stopped paying the rent - would i kick my ex and son out??????? - that really makes my head spin!!!

clutton_2

""that the hb will be claimed back from the landlord and you can be stuck trying to get many months arrears out of the tenant?""

the REAL bummer in this is that one council that i support (ie - i house their old council tenants !!!!) tell me that if one of my HB tenants cheats on their HB and they need to reclaim it off me, they will reclaim it off ANY of my other properties rental payments !!!!!!!!!!!!

i doubt very much whether this would stand up in court, but, who is gonna take on a council for a few months rent ? b***ers thats what i say. (in rant mood tonight, i'm afraid !)

""get many months arrears out of the tenant"" - not a chance with HB tenants, might as well write it off - i sometimes wonder why i do this job ?????

i know one reasonably good landlord who will always get a CCJ on tenants who screw him, it doesn't often get him his rent, but, it gives him satisfaction.

Me, i cannot be bothered to waste energy like that - what goes around comes around, if someone screws me, they will get their comeuppance somewhere down the line.