Renting to DSS tenants anyone?
Discussion
My brother rented out his house to a young couple with kid for a year, didn't have any trouble getting the rent but he had to fork out over £5k at the end to get the place back to close to the condition it was in previously. Received various threats of violence both to the property and to himself when he kept the deposit...
There will of course be exceptions but there's no way I would rent out to DSS, apart from anything else they are likely to spend a significantly higher proportion of their time in your property causing wear and tear.
Higher yield for higher risk...
There will of course be exceptions but there's no way I would rent out to DSS, apart from anything else they are likely to spend a significantly higher proportion of their time in your property causing wear and tear.
Higher yield for higher risk...
I rent 9 properties to LHA, all 3 beds to families and given the sheer demand you can be quite selective as to who you rent to.
Here in leeds the council seem happy to pay direct to landlords, and for reducing advertised rent to affordable levels (LHA rate) they pay direct no questions asked. Currently the rates are at a high level so yields are great.
You do have to tailor your approach to renting to LHA, section 21 notices issued the day they start the tenancy, and extra efforts to make the properties more robust to handle extra wear and tear.
In short - very lucrative but cover your arse and prepare for extra wear and tear.
Here in leeds the council seem happy to pay direct to landlords, and for reducing advertised rent to affordable levels (LHA rate) they pay direct no questions asked. Currently the rates are at a high level so yields are great.
You do have to tailor your approach to renting to LHA, section 21 notices issued the day they start the tenancy, and extra efforts to make the properties more robust to handle extra wear and tear.
In short - very lucrative but cover your arse and prepare for extra wear and tear.
OP here, thanks for everyone's replies.
The conclusion seems to be it can be a money-maker but watch your step carefully and don't over-burden yourself.
Do you use an agent or self-manage? A lot of agents I contacted said they don't deal with any DSS tenants, only working or retired. One agent told me they had stopped a few years ago because the work-load was very heavy. A lot of the tenants came with severe medical (alcohol/drug), or financial problems and the agents had become a de facto social services so the M.D. stopped it.
(would you mind if I contacted you on PM for a few other questions?)
The conclusion seems to be it can be a money-maker but watch your step carefully and don't over-burden yourself.
dazwalsh said:
I rent 9 properties to LHA, all 3 beds to families and given the sheer demand you can be quite selective as to who you rent to.
Here in leeds the council seem happy to pay direct to landlords, and for reducing advertised rent to affordable levels (LHA rate) they pay direct no questions asked. Currently the rates are at a high level so yields are great.
You do have to tailor your approach to renting to LHA, section 21 notices issued the day they start the tenancy, and extra efforts to make the properties more robust to handle extra wear and tear.
In short - very lucrative but cover your arse and prepare for extra wear and tear.
I presume the serving of the Sec 21 is to cover yourself quickly to gain repossession if they stop paying you, is that correct?Here in leeds the council seem happy to pay direct to landlords, and for reducing advertised rent to affordable levels (LHA rate) they pay direct no questions asked. Currently the rates are at a high level so yields are great.
You do have to tailor your approach to renting to LHA, section 21 notices issued the day they start the tenancy, and extra efforts to make the properties more robust to handle extra wear and tear.
In short - very lucrative but cover your arse and prepare for extra wear and tear.
Do you use an agent or self-manage? A lot of agents I contacted said they don't deal with any DSS tenants, only working or retired. One agent told me they had stopped a few years ago because the work-load was very heavy. A lot of the tenants came with severe medical (alcohol/drug), or financial problems and the agents had become a de facto social services so the M.D. stopped it.
(would you mind if I contacted you on PM for a few other questions?)
Jasandjules said:
Can you interview them? If so, I suspect you could do very well, there are many on DSS who are good people who have fallen on hard times.
^^^agree, both the location and type of property can be more of a deciding factor in whether there will be future issues with a letting.I have tenants who pay their rent from their receipt of housing benefits, long term tenants, no problems, in fact i rarely hear from them, lovely people.
Jasandjules said:
Can you interview them? If so, I suspect you could do very well, there are many on DSS who are good people who have fallen on hard times.
My wife runs the Reception at our local CAB, and whilst it is true that for some hard times came at the same time as mental health issues, drug issues or drink issues, and whilst it is true that some people are plainly criminal and not to be trusted, there are just as many, who would make decent tenants if given half a chance. And the problem is often that they have got themselves into debt issues which prevent them getting the deposit together, they would fail a credit reference check and yet quite frankly with a little help they might get themselves back on track. It can become a viscious circle too. A spiral downwards.
I would guess that not dealing with that sort of person means less stress as a land lord, but as a mate said "You pay YOUR Insurance and you plan for some hassle occasionally"
trouble now is if there late for an appointment or miss an interview they have there money stopped for 4 weeks then they cant/wont pay the arrears and end up getting kicked out
i was talking to a housing association woman they said they serve more notices now in a month than they used to in a year
i was talking to a housing association woman they said they serve more notices now in a month than they used to in a year
tooldtocruise said:
trouble now is if there late for an appointment or miss an interview they have there money stopped for 4 weeks then they cant/wont pay the arrears and end up getting kicked out
i was talking to a housing association woman they said they serve more notices now in a month than they used to in a year
JobCentre sanctions? You're right there.i was talking to a housing association woman they said they serve more notices now in a month than they used to in a year
soad said:
tooldtocruise said:
trouble now is if there late for an appointment or miss an interview they have there money stopped for 4 weeks then they cant/wont pay the arrears and end up getting kicked out
i was talking to a housing association woman they said they serve more notices now in a month than they used to in a year
JobCentre sanctions? You're right there.i was talking to a housing association woman they said they serve more notices now in a month than they used to in a year
tstorm of eviction and expensive temporary housing is a fking waste of my money, as is the whole 'give tenants their HB so they can be responsible' instead of direct payments.DSS tenants overall take more management time than private tenants, and ususally the house requires more refurb when they have finnished with it....other consideration is persuing them for damage etc is fruitless as they generally have no money.
The landlord on tv recently who gave all his DSS tenants notice whilst coming over as Rackman, I fully understand why he did it....moving forward we are avoiding DSS.
Tenants are a lottery, workers or benefit claimants,
Section 21 is changing and not for the better -
http://www.landlords.org.uk/news-campaigns/news/de...
Shelter will take advantage of the deregulation and make it nigh on impossible to evict on a section 21, you'll be forced to evict on section 8.
Tread with extreme caution.
Section 21 is changing and not for the better -
http://www.landlords.org.uk/news-campaigns/news/de...
Shelter will take advantage of the deregulation and make it nigh on impossible to evict on a section 21, you'll be forced to evict on section 8.
Tread with extreme caution.
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