Renting to DSS???

HappySad

I heard from a friend that if you rent to DSS & in the future if the tenant is found to not being above board with their situation the council will demand the landlord pay all the rent back. This would be because the rent was paid by the council in error. Is this correct that the landlord would have to pay the rent back?

What are the other issues in regards to renting to DSS.

Mortgage_Mark_2

I think you're getting your wires crossed; that's risk as I understand it if that tenant is claiming housing benefit (or DSS as is commonly referred to) and that benefit is paid directly to you as the landlord.

Many landlords will not accept direct DSS payments however if you're going to claim housing benefit as a tenant and have it paid directly then there is no way that I know of that your landlord will know?

HappySad

Mortgage_Mark wrote: »

I think you're getting your wires crossed; that's risk as I understand it if that tenant is claiming housing benefit (or DSS as is commonly referred to) and that benefit is paid directly to you as the landlord.

Many landlords will not accept direct DSS payments however if you're going to claim housing benefit as a tenant and have it paid directly then there is no way that I know of that your landlord will know?

I am considering to rent to DSS/ housing. So if their rent goes to them directly and they then pay me (the landlord), can the council demand from me the landlord the rent back? What are the rules??

Mortgage_Mark_2

HappySad wrote: »

I am considering to rent to DSS/ housing. So if their rent goes to them directly and they then pay me (the landlord), can the council demand from me the landlord the rent back? What are the rules??

As I understand it, they have no recourse to reclaim those funds from you if the benefit was paid to the tenant themselves, they'd reclaim it from the tenant.

BigAunty

It's Housing Benefit claimants (I know DSS is commonly used but that department hasn't existed for years, if not decades).

Many landlords who do accept tenants on HB will request a guarantor to reduce the risk of rent arrears.

HB is paid directly to virtually all tenants (except those who are considered too vulnerable to manage their affairs) whereas in the past the tenant could direct payments from the council to the landlord. That changed a few years ago and is one reason why HB claimants are less popular, seen at higher risk of not passing the rent on.

If a HB claimant does get into arrears, then a landlord can get a court order (CCJ) for payment but it's virtually impossible to get money out of someone on low income and without assets so enforcement can be difficult. This compares with a working tenant who may want to protect their credit record (may not though!) and where the landlord can get an attachment of earnings from their employer.

HappySad

Mortgage_Mark wrote: »

As I understand it, they have no recourse to reclaim those funds from you if the benefit was paid to the tenant themselves, they'd reclaim it from the tenant.

Thanks. Do you know who to speak to who knows 100%. Do I call my local council? Are the rules different from each council. I know that when I call my local council the staff will just say anything to get you off the phone without really checking what info they are passing out.

pmlindyloo

I think this is what the OP is referring to:

http://www.bury.gov.uk/index.aspx?articleid=3939

HappySad

BigAunty wrote: »

It's Housing Benefit claimants (I know DSS is commonly used but that department hasn't existed for years, if not decades).

Many landlords who do accept tenants on HB will request a guarantor to reduce the risk of rent arrears.

HB is paid directly to virtually all tenants (except those who are considered too vulnerable to manage their affairs) whereas in the past the tenant could direct payments from the council to the landlord. That changed a few years ago and is one reason why HB claimants are less popular, seen at higher risk of not passing the rent on.

If a HB claimant does get into arrears, then a landlord can get a court order (CCJ) for payment but it's virtually impossible to get money out of someone on low income and without assets so enforcement can be difficult. This compares with a working tenant who may want to protect their credit record (may not though!) and where the landlord can get an attachment of earnings from their employer.

How about the council demanding rent from the past already paid to the landlord because the council records shows that they should have not paid the the DSS tenant. Can the council demand back rent from the landlord if they in the future feel the tenant should have not got the housing benefit?

BigAunty

I thought the practice of councils asking for an overpayment from the landlord if they receive the HB directly had ended? I thought I'd flagged this up as an issue that deters landlords from accepting tenants on HB in a historic thread and got told it was no longer an issue?

Another practice that used to put off landlords is that HB claimants had (have?) a reputation for being harder to evict. It's supposed to have changed due to the Localism Act in England. HB claimants are more likely to approach the local council for assistance if they are served notice by the landlord as they are more likely to struggle to find onward accommodation. In the past, a council would routinely tell the tenants to ignore the notice, forcing the landlord to take them to court to get a possession order, making it more long winded and expensive for landlords. Now, apparently, councils are supposed to act earlier when the tenant receives the notice. I don't really know if that legislation has helped matters or not.

Flashmanchop

Getting the rent in the first place is the risk.



You will only get the rent paid direct if they meet certain criteria,8 weeks in arrears, drug user, proof of non payment of rent.



If they get it from the council direct, you have to try andget it from them. I have found in my experience it is a ticking time bomb – youneed to get the money as quickly after they receive it.



If, in the scenario, that the tenant owes money, or is foundto be owing the council, the council will (if it is paid to them direct) theywill take it from payment – so it will affect your payments potentially, asthey may find them selves struggling to pay your money.



It is a minefield, but is is anywhere I think.



Go in with your eyes open, and you won’t be shocked.



Biggest advice – only rent your property at a value you KNOWyour tenant gets. Don’t start asking for“top ups”.



Find out what LHA allowance are in your area – i.esunderland 2 bed £99.92/week. Aslong as tenant is eligible, ask for £99.92, nomore, no less.

Pixie5740

You could also ask for a guarantor if the tenant is able to find someone daft enough to do it.