Questions about Renting a room out to a person i know who claims housing benefit.

angiestar11

Hello there.

Questions:

Can i rent a room out to a person who I have known for 30 years and at one time flatshared (with 4 others) with as he claims Housing benefit?

If I can, will I have to go for an interview with them to prove we're not in a relationship?

Will they also have to come out and inspect the house and do unannounced spot checks?


Thank you for any help you can give  


Additional information:
I had been living with my mother for 5 years and she sadly passed away in January of this year and left me her house. Sadly, i am in receipt of ESA and I am really struggling to pay for bills etc I have spoken to a financial advisors at CAB asked if i would be willing to let out a room in my house.

At first I was and advertised through an agency. After speaking to a few people decided on a person who I spoke to a number of times and got along with. Sadly, a week before they moved in she started to become a little creepy and started sending photos.. Yes, those types of photos, through whatsapp and made some 'jokey' comments about working out her rent in "Other ways" -_-.

The Agency said that it was very rare to have this happen but Since then I've been very reluctant to rent the room out.
Then, last week, an ex-work colleague (who i flat shared with three others for about nine months about 13 years ago) I have known him for nearly 30 years, posted on FB that he had received notice from his landlord and if anybody knew of any wheelchair friendly flats to rent. As my mum was in a wheelchair and had the house converted into a wheelchair friendly enviroment, i thought this would be a perfect situation.

After speaking to a friend however they have said "They won't give him housing benefit as you've known each other for years, already flat shared and are of the opposite sex. You'll have to go through interviews and house inspections, it's not worth it" Is this true? 

thank you for any help you can give. 

elsien

Your friend is adding two and two and coming up with 235.
The housing benefit people are not going to be digging up who shared with who 13 years ago. It’s not unusual for lodgers to be a different gender to that of the landlord.
I had an interview once because I was living with a friend of the opposite sex, just as friends and we moved flat together. There was a planned visit to see if we were a couple, and they were in and out the house in about five minutes. No unannounced spot checks of any sort. 

I wouldn’t worry about it.

FreeBear

angiestar11 said: After speaking to a friend however they have said "They won't give him housing benefit as you've known each other for years, already flat shared and are of the opposite sex. You'll have to go through interviews and house inspections, it's not worth it" Is this true?

Most of my lodgers over the last few years have been claiming benefits. Not once have I been called in for an "interview" or had an inspection. As long as you have a written contract in place, that is enough to satisfy the authorities. Make sure your sleeping arrangements are completely separate, and don't start mixing finances.

As you are on benefits yourself, don't forget to declare the money your new lodger pays you - Get it done by bank transfer so that there is proof of where the money came from.

poppy12345

If your ESA is income related the first £20 of rent from your lodger is disregarded, after this your ESA will be reduced £1 for £1.

If you're claiming single person discount for your council tax then you'll also lose that.

dimbo61

The new lodger will also wait weeks to receive any housing benefit as this will be a new application !
You need to join the NRLA or ask a friend who is a member to print off the Lodger Tenancy agreement.
Are you going to take a deposit ? Make sure it is protected within 30 days.
Carry out a Gas Safe Certificate, Electrical Inspection and Condition Report, EPC valid ? Smoke alarms and CO alarm ?????
Check house insurance 'RE lodger 

FreeBear

dimbo61 said:

The new lodger will also wait weeks to receive any housing benefit as this will be a new application !

...

Are you going to take a deposit ? Make sure it is protected within 30 days.
Carry out a Gas Safe Certificate, Electrical Inspection and Condition Report, EPC valid ? Smoke alarms and CO alarm ?????
Check house insurance 'RE lodger 

HB is also paid in arrears, and the wait is usually around 4-5 weeks from putting a claim in.

With lodgers, deposit protection is not a legal requirement, so is an expense that can be skipped. Just put any money paid as a deposit in a ring fenced account.

EICR and EPC, again, not a legal requirement, but the GS certificate (CP12) is. Shop around for a Gas Safe engineer, some charge a nominal fee, others, £25-50 on top of a cost of a boiler service.

Working smoke & carbon monoxide (CO) alarms should be fitted in all properties as standard.

dimbo61

FreeBear is correct however your going to have a Lodger and not a tenant and you need to be clear about House rules !
You want a Lodger agreement and not a Tenancy agreement.
For your own safety and your Lodgers getting a EICR would prove the electrics were safe when the Lodger moved in should they have an " accident " concerning faulty electrics.
For £50/£60 you can get a new EPC which last 10 years.
You need to also make clear Notice periods if things don't work out !
Guests visiting and staying over ?
Cleaning 
Bills etc

Is your ESA income related ?
If so then you stand to lose money by having a Lodger 
So check this first 
Good luck.

poppy12345

dimbo61 said:

The new lodger will also wait weeks to receive any housing benefit as this will be a new application !
You need to join the NRLA or ask a friend who is a member to print off the Lodger Tenancy agreement.
Are you going to take a deposit ? Make sure it is protected within 30 days.
Carry out a Gas Safe Certificate, Electrical Inspection and Condition Report, EPC valid ? Smoke alarms and CO alarm ?????
Check house insurance 'RE lodger 

To be clear if the lodger isn't already claiming housing benefit they will not be able to make a new claim because it no longer exists for most working age people in this case. Help with the rent will be paid through Universal Credit, known as housing element.

If they are already claiming housing benefit and they will be moving to the same local Authority then the HB can continue and it will just be a change of address. If they are moving to a different LA then they will need to claim UC which will end any Income Related benefits they may already be claiming.