Rent Nightmare

Sparkle78

I want to rent a house at £450 a month. I've been to see it and its the one for me. My parents are dead set against it because "you're paying too much to rent" even though I can't get a mortgage!! However, I have never rented before and am concerned over a lot of things but one in particular;

If I lose my job where do I stand (hopefully I won't but what if I do and have to claim for JSA/Housing)? Do I have to ask before taking it on or do they automatically make you move on?

BitterAndTwisted

If you lose your job you can apply for JSA and LHA (Local Housing Allowance). The amount of LHA is dependent on your age and circumstances. For example, if you are aged 35 or under you will not be able to claim rent on a one-bedded property from the beginning of next month. LHA will only paid at the local level for a room in a shared house. So, if you're contemplating renting a two-bedroomed house and you lose your job LHA is unlikely to cover all of the rent and you will be expected to cover the shortfall from your LSA and savings.

Your parents are wise to be wary as the minimum duration for an Assured Shorthold Tenancy is six months, so if you find yourself in a position where you cannot pay all of the rent you'll find yourself in a right old pickle if you've no savings.

Sparkle78

I know that I will have to cover the shortfall however what I really meant to ask was where do I stand if the letting agency/landlord don't take dss?

G_M

If you sign a 6 month contract, you have to pay the rent for 6 months. If you sign for 12 months...... etc.

And if you lose your job that does not alter your legal responsibility to pay the rent. As B&T says above, the benefits you can claim might well not be enough to pay the rent so you could end up being evicted AND losing your deposit to cover the unpaid rent AND being chased for further unpaid rent into the future.

A contract is a legal document. Don't sign/commit unless you can keep your side of the contract. After all, you'd expect the landlord to keep to his side and allow you to live there for 6 months (or whatever) wouldn't you?

edit - crossposted with yours above: once the contract is signed, BOTH sides are commited. if your circumstances change (eg you become a benefits claimant) that does not affect the landlord's obligation to let you live there, or your obligation to pay the rent.

BitterAndTwisted

Sparkle78 wrote: »

I know that I will have to cover the shortfall however what I really meant to ask was where do I stand if the letting agency/landlord don't take dss?

Then you'll be well and truly scuppered. But you haven't lost your job yet, have you? People on benefits can find it difficult to impossible to find a landlord willing to take them. Some will only accept people claiming if they can either provide a guarantor or pay six months rent in advance.

Do you have a clear idea of all of the other additional expenses when renting a property?

Sparkle78

I totally understand that if I sign for the intial 6 months, I am committed to that until after the 6 months is up, then its on a month to month rental agreement. I know that if I lose my job, LHA will not cover the full amount and I would be looking to pay the extra myself (I do have savings to cover this in place). My question was would I be out on my ear, rent paid or not if I suddenly lost my job and in the long run had to rely on the governement helping me until such time I get another job? Such as, what are my rights whereby I am getting the rent paid for by "dss tenant"?!

BitterAndTwisted

LHA is paid direct to the individual so no landlord or letting agent would need to know that you're claiming it. As long as you pay the rent on time and you have a current AST you can't be chucked out. Contracts work both ways: each party is committed.

Gasha

Sparkle78 wrote: »

I totally understand that if I sign for the intial 6 months, I am committed to that until after the 6 months is up, then its on a month to month rental agreement. I know that if I lose my job, LHA will not cover the full amount and I would be looking to pay the extra myself (I do have savings to cover this in place). My question was would I be out on my ear, rent paid or not if I suddenly lost my job and in the long run had to rely on the governement helping me until such time I get another job? Such as, what are my rights whereby I am getting the rent paid for by "dss tenant"?!

People's circumstances change and it would be very foolish of ANY LA to 'try' and regain possession just because you have lost a job.

Gasha

BitterAndTwisted wrote: »

LHA is paid direct to the individual so no landlord or letting agent would need to know that you're claiming it. As long as you pay the rent on time and you have a current AST you can't be chucked out. Contracts work both ways: each party is committed.

I think you'll find that the LA will need to fill in a proof of rent form for the tenant as part of his application. I have known them to get through occasionally but it's very rare.

Morglin

If a tenant claims LHA, they have to provide the benefits department with proof of the rent they are paying - this can be from their agreement/rent statement.

Landlords are generally not involved with the process, under current rules, benefits departments do not contact them, and there is no legal obligation for a tenant to advise the LL of any change in their circumstances, with regard to finances.

It would be a breach of the data protection act for a benefits departments to advise landlords of any information regarding another person's claim, without their specific permission.

Many tenants recieve LHA, to pay either some or all of their rent, and their LL's are unaware of the fact, as the LHA is paid directly to the tenant (under most circumstances).

But as has been said, the obligation remains with the tenant to pay the rent, in full, and on time.

The above only applies to a tenant already 'in situ' - obviously, when you first go for a tenancy, the prospective landlord is perfectly entitled to check as to your job/income.
Lin

G_M

Sparkle78 wrote: »

I totally understand that if I sign for the intial 6 months, I am committed to that until after the 6 months is up, then its on a month to month rental agreement. I know that if I lose my job, LHA will not cover the full amount and I would be looking to pay the extra myself (I do have savings to cover this in place). My question was would I be out on my ear, rent paid or not if I suddenly lost my job and in the long run had to rely on the governement helping me until such time I get another job? Such as, what are my rights whereby I am getting the rent paid for by "dss tenant"?!

See post number 4 :
" if your circumstances change (eg you become a benefits claimant) that does not affect the landlord's obligation to let you live there, or your obligation to pay the rent. "