Why do some landlords say no to HB tenants?

Kay.Samuels

???

Hoping somone on here can answer this for me?

I'm hoping to move soon from one private rented house to another (hopefully with nicer neighbours) but whenever I see a nice house it usually says no HB / DSS.

Why is this?

I've only been receiving HB for less than a year (I'm usually in work but had to give it up to care for my son) so have never come across this problem before. I am hoping knowing the reasons behind it will make me see it from the landlord's hopefuly logical point of view and I will not feel so disheartened every time I see the words 'no HB/ DSS'.

BitterAndTwisted

Because many landlords believe that those in receipt of benefits are not the best money-managers in the world. Councils automatically pay LHA (Local Housing Allowance) direct to the tenant rather than the landlord and not all tenants manage to pay their landlords on time and in full. Another reason is that LHA is paid to the tenant in arrears and landlords rightfully expect their rents to be paid in advance.

System

Also some mortgage lenders may make it a condition of BTL as will some insurers.

Kay.Samuels

Aah so it is as I thought, they think being in receipt of housing benefits means I will be more likely to wreck the house or not pay the rent!

I was hoping that wasn't the case.

I am very organised with money since having to rely on benefits for the last 8or9 months, it's a case of having to be!. I hate being in this position, I used to be self employed running my own childminding business full time and now I am living on income support, etc looking after my son who is autistic and peole's reaction when they ask me what I 'DO' makes me want to weep.

silvercar

Don't be disheartened, there are some landlords who will look on people as individuals. The important thing is to show that you can pay the rent on time and can fund a deposit, having a guarantor could also help.

To be honest, I know some landlords would shy away from childminders due to the heavier wear and tear.

Swipe

The problem is a few bad eggs spoil it for the majority and because of that landlords are afraid to risk their rent being blown on Special Brew and fags. Back when HB was paid directly to the landlord it was pretty much guaranteed income.

RoseRed

I think it comes down to a few things, firstly is the stigma that many attach to benefit claimants. They wrongly label all claimants as work shy when the majority are victims of circumstance.

Another thing is mess ups in the benefit system, long delays in payments etc.

But don't be too disheartened, one of my friends on benefits has called some landlords and explained her circumstances and found them willing to let to her. If you can stump up the deposit and first months rent then they are normally OK, it is finding the upfront payment that is toughest.

Good luck with getting something soon.

EmRayMarRhys

Kay.Samuels wrote: »

.... and now I am living on income support, etc looking after my son who is autistic and peole's reaction when they ask me what I 'DO' makes me want to weep.

From one in the same boat I completely sympathise.
No real advice, just wanted you to know there are plenty of us out here who understand!

Kay.Samuels

I don't chldmind anymore, and when I did it was while I lived with my ex partner and the house was mortgaged. :-)

My current landlord was really helpful but unfortunately I am surrounded by the neighbours from Hell and in hindsight he was probably desperate to have someone in the house.

Also most landlords would dismiss me because I receive housing benefits however I have budgetted and saved up so that I have this month's rent, another months rent, AND enough for a deposit in my bank account! Maybe I should call EAs of the houses that interest me and be upfront about this??

clutton_2

there is no point in being not upfront... both landlords and agents who are professional will find out in a shot that you are not working and if you have not told them your full circimstances they will wonder what else you have "omitted" to tell them..

as a LL i have many benefit tenants and treat each application on its own merits.... if you go armed with bank statements for 6 months (showing that you have paid the rent/mortgage consistently and also showing how you live,) this will go a long way towards showing your financial acuity...

a guarantor who is employed is also a good idea.

if you cannot do that then contact your local council and ask them for their accredited landlords list - many of whom may take benefit tenants and whose properties are in good order.

good luck

craftygranny

i sympathise completly . my friend is in the same position her child is profoundly deaf . She had a deposit and was willing to pay up to 1,000 in advance rent even though she gets housing benefit . She looked at lots and they were always positive but then they'd ring and say sorry we've given it to someone with a job.
Her guarantor got a mortgage and she now rents from him.
We got a good laugh though one landlord said no and gave her a lecture on how bad hb tennants were and he got one that was working . They moved in the middle of the night after 5 months having paid no bills and behind on the rent and took out the boiler and heating system and caused loads of damage . Pleased his working ones were so much better . not. lol