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Why rent to people on Housing Benefit
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single_lonely
Posts: 284 Forumite
Need some answers for a friend please, NEW LANDLORD.
If he rents out his house does he need to inform other deptartments of his extra income: (child benefit dept., tax credits, council tax) or does the housing benefit department automatically inform them?
Is the landlord allowed to paid directly into bank account or does it have to go to the tenant?
If taking on housing benefit claimants does he need to change anything recontract, deposit, dispute resolutions (do the council act as an intermediator)?
Privately he could get £110/week, is it more hastle keeping people on housing benefit (its a 2 bed, the most he can get on HB is £104, but will be on a longer term and gauranteed rent).
If he rents out his house does he need to inform other deptartments of his extra income: (child benefit dept., tax credits, council tax) or does the housing benefit department automatically inform them?
Is the landlord allowed to paid directly into bank account or does it have to go to the tenant?
If taking on housing benefit claimants does he need to change anything recontract, deposit, dispute resolutions (do the council act as an intermediator)?
Privately he could get £110/week, is it more hastle keeping people on housing benefit (its a 2 bed, the most he can get on HB is £104, but will be on a longer term and gauranteed rent).
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Comments
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G_M has a giant post with information for new landlords in England/Wales. (It's fairly long, but if your friend thinks that's too much information he's not ready to be a landlord!).
Those questions do look a little like trying to run before he can walk, but I'll have a go at some of them:
His tax and benefit affairs are his own responsibility, and he needs to inform all the relevant people of his income.
Housing benefit normally goes directly to the tenant, but it can go to the landlord in some circumstances.
Whoever he takes as a tenant, he needs to do all the normal credit checking / deposit registration etc.
No, the council doesn't generally act as mediator.
The market in different areas is different. I've no idea whether it'd be less hassle for him to find tenants claiming housing benefit or not. (Even if the maximum HB for a 2 bed is £104, he can still let it at £110 - the tenant would just have to come up with £6 a week from their own pocket).0 -
Not all people who get housing benefit are unemployed. So they would be paying some of the of the themselves anyway.0
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Own_My_Own wrote: »Not all people who get housing benefit are unemployed. So they would be paying some of the of the themselves anyway.
This.
Due to extortionate rents (thanks to the house price boom), there are many places where few fully employed tenants are not in receipt of housing benefit or tax credits of some sort.
Something for the Mail and Torygraph readers to think about......
Q: Who profits from high rents & housing benefit claims?
A: Not tenants, but Landlords!Back off man, I'm a scientist.
Daily Mail readers?
Can you make sense of the Daily Mail’s effort to classify every inanimate object into those that cause cancer and those that prevent it ?0 -
Own_My_Own wrote: »Not all people who get housing benefit are unemployed. So they would be paying some of the of the themselves anyway.
82% of housing benefit claimants are not in work.0 -
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I'll bet many landlords are getting benefits tooBlackpool_Saver is female, and does not live in Blackpool0
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Blackpool_Saver wrote: »I'll bet many landlords are getting benefits too
Indeed: I am in receipt of state pension, winter fuel allowance, free prescriptions, Xmas bonus 'n tax relief on my mortgage payments.
I've heard that some landlords even get child benefit.
Should be a law against it.0 -
Have they had a look at their mortgage if they have one, some don't allow tenants on housing benefit, he would also need to inform his insurers.0
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And with a 7% increase between May 2009-May 2012.“You can please some of the people some of the time, all of the people some of the time, some of the people all of the time, but you can never please all of the people all of the time.”0
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