Tips on renting flat to DSS tenants

7sefton

Hi everyone,

I am letting out my old flat in London because I've moved to another city for work. Intention is to either move back to it in about a year, or sell it.

For the past 6 months I've had wonderful, respectful private tenants but they've now given notice to move. I'm finding it hard to get new private tenants and am considering renting via the Council (who will pay the deposit and an extra incentive) to DSS tenants.

I know in general the risks here, but if I HAD to go down this route what advice/steps would you take to de-risk the process as much as possible?

Thanks!

theartfullodger

DSS was dissolved in 2001 I think.  Did you perhaps mean to someone in receipt of benefits?  More than half UK adults are in receipt of some sort of benefit.  About a million working people get some HB or housing element of UC.


Artful: Landlord since 2000:. In receipt of 6 benefits (old)

greatcrested

DSS? What's that?

[Deleted User]

oh come on people you know exactly what the OP means 
DWP 
Dept for Work and Pensions 

davidmcn

Densol said:

oh come on people you know exactly what the OP means 
DWP 
Dept for Work and Pensions

Oh! The DHSS! You should have said.

tacpot12

The only way to de-risk this is not to let the council find you tenants. The fact that the tenants have not had to pay the deposit themselves and have nothing to lose means that they have no incentive to look after your property. Some will, but many will not. I would only do this if I had at least 10 properties, and would only do it with one of them. If this is your only property, I would say it was too risky.  

Hasbeen

7sefton said:

Hi everyone,

I am letting out my old flat in London because I've moved to another city for work. Intention is to either move back to it in about a year, or sell it.

For the past 6 months I've had wonderful, respectful private tenants but they've now given notice to move. I'm finding it hard to get new private tenants and am considering renting via the Council (who will pay the deposit and an extra incentive) to DSS tenants.

I know in general the risks here, but if I HAD to go down this route what advice/steps would you take to de-risk the process as much as possible?

Thanks!

https://www.propertyinvestmentproject.co.uk/blog/reasons-why-landlords-shouldnt-accept-dss-tenants/

[Deleted User]

OK, Benefit dependent tenant, first month rent and deposit paid by council as a loan which I paid back.  I had bank statements ready to show LL's that I kept my finances in good order, was always on time with rent in four years, left property in a lot better condition than I found it (put insulation in, removed rubble, completely refurbed bathroom which was mouldy with leaking pipe the LL point blank refused to investigate - typically it wasn't a good LL but you don't have a lot of choice in this situation, I was lucky to be accepted by any LL), I also decorated over very poor previous decorating attempts the LL made previous tenants do to a good standard.

So not all benefit tenants aren't worth the risk.  Its finding the ones who are.., but this is the same with any rental situation.  Working tenants can trash a property and refuse to pay rent too.  The only problem is with the situation you are describing is that the council may nominate a tenant.  I'd probably be asking the council if you could vet them yourself as well.  

another_casualty

Other things to consider : Are you letting property out yourself, or via a letting agent ?
If using a letting agent , what type of contract will you take out with them ? 

Are you going to make inspections ,on a regular basis ? 

Oh, and I strongly advise against students / college people . 

At this present time in my gd flr leasehold flat ,the owner of one of the flats above sold to a btl investor .
This was approx 1 year ago . A  young couple moved in . One Christmas party till the early hrs . I let it go. Then since lockdown while I'm in isolation , there have been random drug parties with about 4 individuals . After to -ing and fro -ing with the managing agents , I found the owners via land registry search (£3) . I know who the letting agents are .
I emailed them the letter I posted to the scummy landlords and tore strips out of them as well. I have a feeling that  the lettings agents didn't relay the first message as now the polite lady told me to contact her as soon as they kick off again . 

Regarding council tenants , I've heard a few  horror stories and one that is ongoing regarding multiple occupants living above my niece and her other half .
I have experiences of doing my brothers dirty work when he became an accidental landlord for approx 18 months 

I'll leave it there..
one other thing : I looked at a few places on right move and " no dss " is still quoted 😼

Voyager2002

Sadly, none of the people who responded have understood the question. This is not about accepting tenants who are on benefits, but about a specific scheme to house homeless people. At one stage I considered doing this: the terms of the deal were:

1. The council pays the rent;

2. At the end of the tenancy the council completely redecorates and refurbishes the property before handing it back to you.

So the main risk would be in the small print: precisely what do they do or not do as part of the refurbishment, and what liability do they accept if things go badly wrong.

I chose not to use this scheme in the end because the rent they offered to pay was well below what I could obtain on the open market.

Socajam

Make sure to check with your insurers, because some insurers will not accept tenants who are on benefits.