How does DSS work for a landlord?

silvercar

England83 wrote: »

We currently rent out a house privately and also rent somewhere ourselves. Reason being we couldn't sell the house and needed to move to a new town for work etc. have had a tenant in for the past year and they are now moving. Have someone who is very interested in the property but is on DSS. She can pay the bond of 575 upfront but says her housing benefit is paid direct to landlord in 2 week arrears. Now obviously we would prefer first month rent upfront plus bond but as we've not got anyone else interested it looks like this may be our only option. We would have to use the bond as first month rent to pay the mortgage then somehow use the rent when we get it as bond to go in the deposit scheme. Very apprehensive about this but they seem a nice genuine family just don't want tp be without a bond as we had trouble with our last tenant paying bond. Any advice is greatly appreciated.

Then you shouldn't be a landlord. Sorry, but if money is so tight that you have no float to deal with any urgent repairs then being a landlord is not for you.

Can you afford the gas certificate, landlord building insurance?

gayleanne

nannytone wrote: »

i really dont see what difference it makes.

if the tenant wasnt on benefits, they would still be in a position to NOT pay their rent surely?

just because the LHA goes to the tenant who then pays the landlord ....
how is this different?

if you have a tenant that has no intention of paying their rent, it is irrelevant if they get housing benefit or not

Nannytone the OP did not realise that the LHA is paid to the tenant not the OP. Yes you can have someone who is working that will not pay the rent as well as someone on LHA. This is why we are advising the OP to cover herself.

England83

nannytone wrote: »

i really dont see what difference it makes.

if the tenant wasnt on benefits, they would still be in a position to NOT pay their rent surely?

just because the LHA goes to the tenant who then pays the landlord ....
how is this different?

if you have a tenant that has no intention of paying their rent, it is irrelevant if they get housing benefit or not

That is my thought... Yes some people on benefits are lazy good for nothing's as portrayed by the media but in my experience in other walks of life people who are on less money are more likely to pay out than rich people who quibble over every penny. This post was asked for advice on how the housing benefit system works, I repeat related to my own situation.

England83

silvercar wrote: »

Then you shouldn't be a landlord. Sorry, but if money is so tight that you have no float to deal with any urgent repairs then being a landlord is not for you.

Can you afford the gas certificate, landlord building insurance?

We are a landlord because we could not sell the house and had to move to a different town where we currently rent a house out ourselves. Lots of people are in the same situation. Yes we have money aside for anything we need to repair in the house but due to unforeseen circumstances we are going to be in a tight spot this month. We have buildings insurance and gas safety certificates. We have no other option but to rent our house out.

gayleanne

Well I honestly think you are going to have problems accepting a tenant that can not pay the first months rent, if the LHA take 2 months to actually pay the tenant that will mean you have gone for nearly 3 months with no rent. With no back up to pay the mortgage.

princessdon

There is no way I'd take a tenant who can't afford the first months rent, sorry but you need to tread carefully here.

Ask for a guarantor (home owner), make sure you get references from prior landlord etc

Financially they will be very well off as a lone disabled parent of 3 children and will probably have more money than most couples.

At a minimum she will get £1135 per month (not including council tax and housing) and possibly a lot more than that if disabled, add child maintenance, housing benefit. (She only needs to find the small shortfall) then it's not affordability.

Find out if they have poor credit, ensure your insurance allows benefit claimants, look at a guarantor.

The main negative I have is that they can't find the months rent, that would send alarm bells to me, the benefit issue less so, especially with a guarantor.

RAS

OP - you need to know what the situation is with the other property as if she is a joint tenant, she remains liable to pay rent at the old house.

The tenant can apply for rent on two properties if she needs to give notice on one property and secure the other property.

You do not say whether you are in England and Wales or eslewhere? In England and Wales you need to get any guarantee executed as a deed and it has to be done correctly or it is useless. Go over to the renting and selling forum for help on that.

jacques_chirac

I would let to someone on benefits. I would not let to anyone (benefit claimant or not) that could not pay a month in advance or expected me to wait another month because they were waiting for the money.

England83

RAS wrote: »

OP - you need to know what the situation is with the other property as if she is a joint tenant, she remains liable to pay rent at the old house.

The tenant can apply for rent on two properties if she needs to give notice on one property and secure the other property.

You do not say whether you are in England and Wales or eslewhere? In England and Wales you need to get any guarantee executed as a deed and it has to be done correctly or it is useless. Go over to the renting and selling forum for help on that.

in England. Will look into it. At the moment if she doesn't pay deposit and first month up front she's not having it. Although it is up to my husband...!

princessdon

England83 wrote: »

in England. Will look into it. At the moment if she doesn't pay deposit and first month up front she's not having it. Although it is up to my husband...!

You also need to look at the ages of the children. If she is on sickness benefits the rules are very tight and it means she is not capable of doing even 16 hours a week work. If she is ill with young children will she be well enough to look after your home, mow the garden, touch up paint, steam clean carpets when children spill a drink.