lodgers on housing benifits question

asoe209

Just a quick one really. Are there any issues taking in a lodger that is on housing benefit?

I have had a couple intrested in my room but have been on this but dont know if there is any sort of things that can go wrong with that.

BigAunty

Advice I've seen say the best lodgers are sorted, solvent people in full time studies or employment.

One of my old landlady's would typically always refuse a HB claimant on the grounds that they would rack up more heating/energy costs from staying in all day.

Most landlords don't accept HB claimants on the grounds that they are seen as being at greater risk of arrears, due to their low incomes, and because they can be harder to evict (as funnily enough, not many landlords accept them so the next property is harder for them to find) though of course, HB lodgers have less rights anyhow when it comes to tenure compared to tenants.

Some landlords who do accept HB claimants insist on a guarantor to reduce the risk of arrears.

If you are happy to take a HB claimant, then you'd still want to do all the typical lodger screening/checks that I think you've been advised to do on earlier threads (advice given on the Landlordzone website about how to pick the best lodgers and filter out dodgy ones).

G_M

No problem if

* they are nice people to share your home with
* they pay the rent
* you have a simple but clear lodger agreement (keep notice period short! one week?)
* you have clear house rules

See also

LODGERS (Licencees/Excluded Occupiers)
A lodger (broadly) lives in the same property with their resident landlord, and shares facilities. Unlike tenants, lodgers have few rights.

The Housing Act 1988 provides definitions of 'Resident Landlord' and 'same property'.

There is advice for landlords considering taking in lodgers here:

LodgerLandlord (General information site)

Landlordzone (General advice on taking in lodgers)

Renting out rooms in your home (Government info)

Rent a Room Scheme (Government scheme for tax-free income from lodgers)

21 tips (Tessa Shepperson's Lodger Landlord website)

asoe209

Thats, so I have been been talki g wigh this one person who is on HB, I am allowing them to come and have a viewing, from just messages they seem alright ghey do work but low income as mentioed. And alao does charity work.

Thet are coming with a family member I beleive this peroson would be putting down the deposit and prob first months rent. But that to be discussed in person.

They are well aware of the cost my consern is that the rent is paint on time,

Out of intrest who is it that pays the HB is it the council or some other agency. I know nothing about it really.

thesaint

If someone else is paying the deposit, and rent, it doesn't bode well, unless the deposit and rent is unusually high.

Housing benefit/local housing allowance is paid by the local authority to the tenant in the first instance. It can be paid directly to the landlord in certain circumstances.

asoe209

Had another question never wanted to start a new thread for it.

At the mo im on singles person council tax, but what happens to it if a lodger comes in? Was not sure if there is a difference in the tax if its a lodger. When my partner was here it was about 120-130 a month

Jenniefour

Re: council tax. You would need to notify the council and you would lose your single person discount. So it's wise to make some allowance for this in the rent, as you will be doing with other bills.

asoe209

Yeah I have done I just assumed it would be around what it was before just was not sure if it was a different rate with lodgers

Jenniefour

Forgot to add - there may be some discount on council tax re HB. You could call council and ask. So losing your single person discount may not be the case.

Cissi

As a lodger has much fewer rights than a tenant and so is easier to get rid of if things go wrong, my advice would be to trust your instincts on this one - ie, does this seem like a person that you'll be happy to share your home with? If yes, then you don't actually have much to lose


Incidentally, I realise that English may not be your first language (it isn't mine either!) but you might get more constructive replies if you used a spell checker... Whilst not wanting to be picky, it's actually quite hard to make sense of posts made up of "this peroson", "intrested", "rent paint on time" etc...

CreditCrunchie

Perhaps I am way out here, but aren't you actually better off with a HB lodger in that you are guaranteed to have the rent paid and on time as it comes direct from the benefits people? Just make it a stipulation that your lodger must set it up so rent comes direct from HB office and not through them first.