Renting to DSS tenants

Wee_Willy_Harris

Jowo wrote: »

"Between April 2008 and October 2009 over 80% of tenants who have received direct payment of LHA in the form of a cheque made payable to them have cashed it and not paid the money to me, their landlord....63% of the tenants who have had their housing benefit paid directly
to themselves and have kept it, have left as soon or very soon after direct payment to them was stopped. Presumably to do the same with other landlords...9% of all LHA claims have not been paid due to the difficulty of claiming. Typically the tenant leaves before the claim can be
processed, and without the tenant's co-operation the claim cannot be successfully completed and I am not paid. ..Since April 2008 where I have let houses or flats to tenants on LHA or they have lost their job and had to claim LHA, I have evicted or in process of evicting 1 2 families, mainly due to their failure to pay the Housing Benefit they received to me, or on one occasion, their failure to process their claim for Housing Benefit. This represents 40% of the houses and flats I let to families on Housing Benefit.....In all cases, where direct payment has been made to me because the tenant is eight weeks in arrears, the tenant has not paid their arrears or made any attempt to do so... There has however been an increase recently in those I have to formally evict.. more are waiting for the bailiff to evict them. During the 14-20 weeks this takes I do not receive any rent. The
tenants do not appear to be unduly upset at being evicted or being asked to leave and they appear to easily find accommodation elsewhere."

http://www.publications.parliament.uk/pa/cm200910/cmselect/cmworpen/memo/local/ucm8602.htm

experience of a landlord with 18 years experience who decided to start letting to LHA tenants after ceasing to do so because of bad experience with HB tenants.

Perhaps he should look at his poor business practices. Clearly, his referencing regime is less that adequate if these figures are to be believed. Most HA's run on rent arrears of less than 5%, and a disproportionately high number of their tenants will be in reciept of LHA. Before you all bark, I know they get LHA direct, but the problems mentioned above with the LHA claims would be the same. If they can manage their LHA revenue to such an extent, why not the guy above?

climbintheladderouttadebt

I rent my flat privately with my rent currently being paid through my local council. My landlords got paid back an underpayment swiftly by myself in 2007 (which was not caused through my own fault). I have recently had all new windows installed, which I am grateful for as they reduce the risk of intruders and the kids falling/climbing out the windows, and have built-in air vents to help a mould problem. I've sadly very recently found out that my landlords know this mould problem is not my fault but a fault with the building (one flat in a block of 6) and when the council recommended the property to me, 2 weeks before my baby was due, they had no idea what I was being let in for! It makes me and the kids ill (the mould, that is) every winter. The walls look awful and I redecorate in magnolia paint every year. Mould treatment has no effect. The walls are in dreadful disrepair in the bathroom and I am getting no help from council or landlords to sort the problem.

My neighbours are mostly homeowners and one or two have made it obvious they don't like me. I have had complaints about my car (which is allowed to be kept in my space whilst I cannot use it), gossiping, rudeness etc. and I feel it is because I do not own my flat. There are all sorts of issues over ground rent (the nastiest neighbour here pays the most and acts like she owns the place).

As I rent from the owner, I cannot complain to or even communicate with the management company. I cannot move to an estate-agent property as I cannot get a guarantor and 6 months rent in advance plus a deposit. So my landlords get their rent every month, albeit in arrears, a tenant who wishes to provide a nice homely place to raise her family, no noise pollution/anti-social behaviour and no desire to invite trouble to the property. I get abuse from neighbours, serious illnesses from the state of the property, and noise from inconsiderate tenants in the building. I am just glad I have a roof over my head, however troublesome. It won't be forever...

Moaner

We have DSS tenants above us in a private block of flats and they are awful. Our block of flats and the immediate area has declined - increase in rubbish, fag butts on the floor, mates turning up at all hours, noisy cars and motorbikes. I'm probably not much help in answering your question, im just having a rant!

But what I would say is this, please consider your neighbours who will have live with whoever you rent your home to. It's a shame there isn't some sort of legislation whereby landlords can be held accountable for who they choose to rent their properties to, in the instance of the tenants causing havoc and ruining the quality of life for other residents.

Don't think im a snob, because i'm not. I'm a hard working, working class person who saved hard to live in a nice property but who now thinks, why did I bother? I should have just sat at home on my a*se and let the state pay for it. I'd still be living where I am now....who's the mug?

debrag

When I was renting and on DSS I paid a deposit and 1 months rent up front. All places I've see acceptng DSS have wanted the same.

clutton_2

when the governments latest initiative to base LHA on the 30% percentile of the BRMA's local rental values, renting to LHA tenants will be a LOT less interesting to investors....

thus the amount of housing in the PRS which will be available to LHA tenants will inevitably decline .. again....

Mrs_pbradley936

Bob_the_Saver wrote: »

If a tenant was found to have claimed falsely ie. got caught working on the side or whatever, wouldn't the local authority rapidly claim back the money from YOU and then you have to try and claim large amounts back from the tenant? or has this changed.

That is true - if the tenant is awarded HB and later found not to be entitled to it the Landlord has to repay even though he did not claim it in the first place.

Jowo_2

Mrs_pbradley936 wrote: »

That is true - if the tenant is awarded HB and later found not to be entitled to it the Landlord has to repay even though he did not claim it in the first place.

My understanding is this only takes place if the LHA/HB is paid directly to the landlord and doesn't affect the landlord if the tenant receives the benefit directly.

But it's still double-edged. Many landlords would prefer to receive the LHA direct to prevent arrears (but it normally goes to the tenant unless the council class them as vulnerable) but if they receive it directly and its a fraudulent claim or overpayment, the landlord has to pay it back.

Jowo_2

yestodssdotcom wrote: »

In such a bouyant rental market where no reasonably priced decent property is not empty for long I am beginning to understand why landlords are reluctant.

There is still a section of the market ideal for DSS but it is obvious from my research and comments here that the current system makes it difficult.

I understand that some or all councils offer a two year bond guarantee for some tenants which could be attractive. I would have thought they would help landlords willing to provide social housing more to reduce the pressure for local authority properties.

A deposit guarantee covers one month's rent and does little to reduce the risk of arrears or cover damage.

Svenena

There must be a lot more people claiming LHA these days because of the recession, and I'm sure many of them are the kind of people who in other circumstances would be attractive to LLs. I claimed LHA for 4 months last year after finishing uni (being unable to find a job) and was a completely unproblematic tenant, paying my rent on time for the 13 months I was there, and receiving my full deposit back when I left. It was difficult to find a LL willing to accept a T on LHA, but I'm sure my ex-LL wouldn't mind doing taking one on again.

tbs624

yestodssdotcom wrote: »

I have read this thread with great interest. I recently launced a website to match DSS tenants with willing landlords after watching a good friend of mine struggle to find a house.

So it's the usual route for those who like to do a spot of free advertising on these boards - bit of forum gravedigging followed by some swift self promotion.

Your site will obviously help some people - both LLs and Ts - but you may like to check out the rules of this forum.

MoneySavingExpert.com is an ad free site - you cannot pay to buy space - one of the reasons why so many people use it! Equally you are not allowed to advertise any goods, services and/or companies anywhere on the forum, or through private messages (PMs), no matter how honourable the intention.

and

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