Private landlords, do you accept housing benefits?

beckysbobbles12

Hi all

My husband has a property he rents out and I tend to all the administration for this (woo hoo for me...!) anyways the current tenant is moving out soon and we're in the process of listing again on Openrenter.

The previous tenant didn't pass the credit search however we did rent to her as she had a private guarantor and we felt comfortable with this. Everything was fine with this tenant and she was in there two years but decided to move on due to the rent increase.

I've had some enquires for a new tenant who has said she receives housing benefits and asked if we would accept this. She explained this would be paid directly to use however I see that most benefits are paid directly to the claimant. She also said the local council would act as guarantor for her. I haven't come across this before.

I thought I'd ask whether this sounds feasible and your experiences please.

Robbo66

Rent is now paid as part of universal credit, councils would only pay direct to a landlord once the tenant falls in to arears and you as the landlord apply to have the rent direct. Some councils will pay direct to the landlord at the start but only under certain circumstances and these vary council to council.

The Council will not be a guarantor, councils never have been and never will be. One thing to remember that once a rent payment is made it is down to the tenant to pass on, if they don't you cannot claim it from the council you would have to start a civil claim against the tenant and the likelihood of getting anything is slim to non.

Whilst the vast majority of tenants receiving benefits make good tenants some don't same as tenants in full time employment and referencing doesn't tell the whole story

beckysbobbles12

Thank you. That's exactly what I read so already this potential tenant is either lying or misunderstood. I appreciate the reply.

FreeBear

Robbo66 said: The Council will not be a guarantor, councils never have been and never will be.

Not quite true. Many councils have what they call a "rent bond guarantee" and also provide assistance with things like deposits. This sort of financial support is generally only available to people that are currently (or at risk of being) homeless and have been assessed as being a priority. The budget for this limited and not widely publicised.

As for housing benefit being paid directly to the landlord, a word of caution - If the claimant is found to be guilty of benefit fraud, the DWP could claim any payments made for rent back. They would need to show that the LL was in collusion with the claimant and the DWP isn't averse to twisting facts to suite their agenda..

diystarter7

Hi Op

Never, Never had to but always aware that people can fall ill and not be able to return to work and then we would seriously consider it and most likely would if the T's were good T's in the first place. 

My property my choice but as per above.

Thanks,

hazyjo

Do you have a mortgage on the property? There may be restrictions on letting to someone on benefits. Not sure if the law has changed to prevent this, but it used to be the case.

_Penny_Dreadful

It is a breach of the Equality Act 2010 to discriminate against a potential tenant on the basis they are in receipt of benefits.  This woman may be in receipt of housing benefit for her current home and might be unaware that when her situation changes she will be moving to universal credit.  That sounds more plausible that accusing the woman of straight up lying.

diystarter7

_Penny_Dreadful said:

It is a breach of the Equality Act 2010 to discriminate against a potential tenant on the basis they are in receipt of benefits.  This woman may be in receipt of housing benefit for her current home and might be unaware that when her situation changes she will be moving to universal credit.  That sounds more plausible that accusing the woman of straight up lying.

Hi

You are possibly correct but as per my above post, those on benefits will not meet the affordability criteria for any of our properties.

Thanks

YBR

_Penny_Dreadful said:

This woman may be in receipt of housing benefit for her current home and might be unaware that when her situation changes she will be moving to universal credit.  That sounds more plausible that accusing the woman of straight up lying.

Just to check for my own interest: Does a change of address always count as "her situation changes"?

freesha

The tenant can indeed ask for the rent to be paid direct to landlords, without you having to request it, or without her being in arrears.

freesha

YBR said:

_Penny_Dreadful said:

This woman may be in receipt of housing benefit for her current home and might be unaware that when her situation changes she will be moving to universal credit.  That sounds more plausible that accusing the woman of straight up lying.

Just to check for my own interest: Does a change of address always count as "her situation changes"?

Yes, depending on area.