Renting flat - Tenants on benefits - Advice needed
Discussion
I have a flat which I rent out. The current tenants are moving out at the start of April so I'm on the hunt for potential new tenants. I've always done it myself and don't intend to change that.
I'm just after constructive advice on things to look out for if renting out to people on housing benefit. Are there any real negatives to this?
I have never rented out to people on benefits before as I have always found suitable professional people, but I don't want to limit my possibilities if I don't need to.
Many thanks.
I'm just after constructive advice on things to look out for if renting out to people on housing benefit. Are there any real negatives to this?
I have never rented out to people on benefits before as I have always found suitable professional people, but I don't want to limit my possibilities if I don't need to.
Many thanks.
Spudler said:
Paul_B said:
renting out to people on housing benefit.
f
k that!I'd rather my properties sat empty.
Your choice, I sure as he'll wouldn't.
They may work but be on low income, just lost their jobs and genuinely looking for work with a decent CV, divorced single mum with kids and a low paid job or for example some friends of ours - an older couple with an autistic son they looked after and the bloke was retired and wife worked as many hours as she could.
So if OP is open to renting to those on benefits, judge their situation on the facts. Avoid any that look like they walked off the set of Shameless.
If you can get working tenants then stay well well away from housing benefit tenants, trust me, you do no need the stress that some of them can bring.
There are of course some perfectly good HB tenants, I let to them in certain areas but it needs a different approach than a working tenant.
There are of course some perfectly good HB tenants, I let to them in certain areas but it needs a different approach than a working tenant.
hyphen said:
I think there are different types of benefit tenants.
They may work but be on low income, just lost their jobs and genuinely looking for work with a decent CV, divorced single mum with kids and a low paid job or for example some friends of ours - an older couple with an autistic son they looked after and the bloke was retired and wife worked as many hours as she could.
So if OP is open to renting to those on benefits, judge their situation on the facts. Avoid any that look like they walked off the set of Shameless.
I'm aware of different situations coming under HB.They may work but be on low income, just lost their jobs and genuinely looking for work with a decent CV, divorced single mum with kids and a low paid job or for example some friends of ours - an older couple with an autistic son they looked after and the bloke was retired and wife worked as many hours as she could.
So if OP is open to renting to those on benefits, judge their situation on the facts. Avoid any that look like they walked off the set of Shameless.
We actually have a woman with two young children in one of our houses, she's claiming benifits, one of them HB.
It's purely because she's six months in advance and her mother is a guarantor that after I met her I agreeded.
Otherwise it's a flat no, why risk any hassle.
hyphen said:
I think there are different types of benefit tenants.
They may work but be on low income, just lost their jobs and genuinely looking for work with a decent CV, divorced single mum with kids and a low paid job or for example some friends of ours - an older couple with an autistic son they looked after and the bloke was retired and wife worked as many hours as she could.
So if OP is open to renting to those on benefits, judge their situation on the facts. Avoid any that look like they walked off the set of Shameless.
This is what I was thinking. I'm well aware there is a bit of a stigma around people on benefits, largely due to a proportion of those being unsavoury characters. I wouldn't entertain letting to that type of person. However, I am also aware there is a proportion of people on benefits for genuine reasons. They may work but be on low income, just lost their jobs and genuinely looking for work with a decent CV, divorced single mum with kids and a low paid job or for example some friends of ours - an older couple with an autistic son they looked after and the bloke was retired and wife worked as many hours as she could.
So if OP is open to renting to those on benefits, judge their situation on the facts. Avoid any that look like they walked off the set of Shameless.
I put an advert up last night, have had 5 people enquiring and they are all single mothers on DSS...
dazwalsh said:
If you can get working tenants then stay well well away from housing benefit tenants, trust me, you do no need the stress that some of them can bring.
There are of course some perfectly good HB tenants, I let to them in certain areas but it needs a different approach than a working tenant.
Are you able to elaborate on the different approach that you mention? There are of course some perfectly good HB tenants, I let to them in certain areas but it needs a different approach than a working tenant.
Just to add, I let the flat out of necessity more than anything else and it is my only rental property. I can't afford to have it empty and also can't afford any unecessary complications.
Any advice appreciated.
Paul_B said:
Are you able to elaborate on the different approach that you mention?
Just to add, I let the flat out of necessity more than anything else and it is my only rental property. I can't afford to have it empty and also can't afford any unecessary complications.
Any advice appreciated.
I require housing benefit tenants to put a request in with council for direct payment, I also request that I can enquire on their behalf should any payment suspensions take place.Just to add, I let the flat out of necessity more than anything else and it is my only rental property. I can't afford to have it empty and also can't afford any unecessary complications.
Any advice appreciated.
Councils pay every 4 weeks in arrears not monthly in advance. More often than not the tenant will not have any deposit or rent upfront so if you are willing to accept them you will find a wait of 4-6 weeks before a backdated payment is sent out (via cheque in your name). You need to get the tenant to keep a receipt of every single visit mafe to council and check with council to make sure they have supplied everything needed.
I would suggest researching exactly how much HB levels are in your area per week so you can judge wether to reduce the rent to that amount or not. Top ups from the tenant are quite often unreliable.
There will be a lot more wear and tear on the place, especially with kids. Laminate flooring is your friend here.
Guarantors are usually out of the question unless they own their own home, and as said earlier deposits from HB tenants are few and far between, which ay least cuts down on admin.
The upside is direct payment and a pool of tenants so vast you can be quite choosy in who you let in. If they are happy they are also less likely to leave, mostly because more and more landlords are shying away from HB tenants.
Oh and the yields are pretty good if you target that end of market when buying property. I knoe that doesnt apply in yoir case.
Edited by dazwalsh on Friday 3rd February 18:22
A mate has a good few rentals and is very explicit that he wont accept tenants with either Benifits, pets, smokers, children.
As either (or all) of these 4 and your likely to end up with a fked house.
Why risk it when there is no shortage of tenants.
As either (or all) of these 4 and your likely to end up with a f
ked house. Why risk it when there is no shortage of tenants.
Edited by Bristol spark on Friday 3rd February 19:05
dazwalsh said:
I require housing benefit tenants to put a request in with council for direct payment, I also request that I can enquire on their behalf should any payment suspensions take place.
Councils pay every 4 weeks in arrears not monthly in advance. More often than not the tenant will not have any deposit or rent upfront so if you are willing to accept them you will find a wait of 4-6 weeks before a backdated payment is sent out (via cheque in your name). You need to get the tenant to keep a receipt of every single visit mafe to council and check with council to make sure they have supplied everything needed.
I would suggest researching exactly how much HB levels are in your area per week so you can judge wether to reduce the rent to that amount or not. Top ups from the tenant are quite often unreliable.
There will be a lot more wear and tear on the place, especially with kids. Laminate flooring is your friend here.
Guarantors are usually out of the question unless they own their own home, and as said earlier deposits from HB tenants are few and far between, which ay least cuts down on admin.
The upside is direct payment and a pool of tenants so vast you can be quite choosy in who you let in. If they are happy they are also less likely to leave, mostly because more and more landlords are shying away from HB tenants.
Oh and the yields are pretty good if you target that end of market when buying property. I knoe that doesnt apply in yoir case.
Thanks for taking the time to respond. I appreciate the helpful advice. Councils pay every 4 weeks in arrears not monthly in advance. More often than not the tenant will not have any deposit or rent upfront so if you are willing to accept them you will find a wait of 4-6 weeks before a backdated payment is sent out (via cheque in your name). You need to get the tenant to keep a receipt of every single visit mafe to council and check with council to make sure they have supplied everything needed.
I would suggest researching exactly how much HB levels are in your area per week so you can judge wether to reduce the rent to that amount or not. Top ups from the tenant are quite often unreliable.
There will be a lot more wear and tear on the place, especially with kids. Laminate flooring is your friend here.
Guarantors are usually out of the question unless they own their own home, and as said earlier deposits from HB tenants are few and far between, which ay least cuts down on admin.
The upside is direct payment and a pool of tenants so vast you can be quite choosy in who you let in. If they are happy they are also less likely to leave, mostly because more and more landlords are shying away from HB tenants.
Oh and the yields are pretty good if you target that end of market when buying property. I knoe that doesnt apply in yoir case.
Edited by dazwalsh on Friday 3rd February 18:22
As with any tenants, there are good and bad tenants who receive benefit payments.
The positives are that you're likely to get a long-term tenant, because it is hugely challenging to find somewhere to live.
I'd be selective, meet with them, conduct proper references, get a feel for the person. Not everyone who receives benefits is going to wreck your property, just as not everyone who has a job will treat it nicely.
The positives are that you're likely to get a long-term tenant, because it is hugely challenging to find somewhere to live.
I'd be selective, meet with them, conduct proper references, get a feel for the person. Not everyone who receives benefits is going to wreck your property, just as not everyone who has a job will treat it nicely.
The best tennant we've ever had was on HB. The house was in better condition the day they moved out than it was when they moved in. They were a nice young couple with a young child. Both worked but were on low income. They topped up the rent. Never missed a payment.
By far the worst was the last lot who came with great references. I now suspect they were that good to get them out of a previous property. They even left a note telling us to keep their deposit. They were the first I didnt personally show round the house.
By far the worst was the last lot who came with great references. I now suspect they were that good to get them out of a previous property. They even left a note telling us to keep their deposit. They were the first I didnt personally show round the house.
Very simply an HB tenant is home all day therefore wearing everything out faster and causing more wear and tear, if for some reason they lose HB (for instance once their youngest offspring hits a certain age they have to work and HB stops). Unless you want to be charitable don't do it, you have no control over whether or not the HB continues and when/if they stop paying the council will advise them to stay put ignoring eviction notices until a bailiff is actually breaking the door down .
As you may have guessed I'm not a fan
As you may have guessed I'm not a fan
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