Letting to DSS/housing benefit tenants? Advice please

[philv]

Hi,

i am about to let a flat and i was wondering if anyone had any comments on letting to people on DSS/housing benefit?

Is the rent paid directly to the landlord by the DSS?

Any particular precautions i can take?
Or should i not consider DSS?

I have no problems with people on DSS and do not mean to generalise.
I just wondered how it works and how i should prortect myself.

Would this cause a problem in getting insuirance for buildings and contents and insurance to cover non payment of rent and leagl fees, etc?

Thanks for any advice.

[Eric Mc]

No such thing as DSS so trying to find out anything about their rules will only lead to frutration.

The DSS and DHSS were abolished 22 years ago. Benefits are now handled either by the Department of Work and Pensions (DWP), Job Centre or HM Revenue and Customs (Tax Credits).

[M400 NBL]

anonymous said:

[redacted]

Yes a few years ago I got a cheque directly from the coucil for HA tenants. When they moved out and I moved in, and I wanted to rent my residential property out, my council were using a campany to deal HA issues.

They offered me almost £100 less for the same size property, wanted me to block all the victorian fire places up (among other things) and then I found out I had to rely on the tenants paying me.

I said no thanks.

On the bright side, assuming all councils are the same. Once the property is in a condition that meets their requirements (ie, fking about blocking 100 year old fire places) they will do all the maintentance and contracts are typically much longer than you'd get through an EA. I thnk 3 years is the minimum.

[philv]

Thanks for the replies,

There isn't the possibility to have the rent paid directly?

So i guess non housing benefit is probably the way to go.

[philv]

Thanks, you answered my question.

I'll be renting privately and hopefully taking out landlord insurance for non payment of rent and legal fees etc.
Any comments on this?

Thnaks,

[Tuscanless Ali]

The tennnant can opt to have the rent paid directly, (It's a breach of human rights or some nonsense if the council don't pay it to the tennant.)

[E36Rob]

My father recieves housing benefits directly and pays the landlord on time every month. Not everyone out there is trying to rip people off. There is nothing to say that someone not on benefits will not pay / pay late etc. I think you just need to be careful who you rent to.

[Wings]

I rent out flats and housing to those receiving both housing benefits and those in full time employment. The former are paid their housing benefits direct, they then pay their rent directly to me. If they were to fall behind with their rent by two months, then the council’s housing department will start paying the claimant’s/tenant’s housing benefit/rent directly to me/the landlord.

Tonker of course is absolutely right, paying housing benefit directly to the claimant, just leads to the claimant being tempted to have more money to spend on themselves, mainly down the boozer.

Over 15 years I have accumulated lots of horror stories, both with tenants on housing benefit and those in employment. I believe at the outset of first meeting a potential tenant, whether on benefit or not, it is about checking references, implementing a Deed of Guarantee and then sussing out and making the right judgment on that person/s.

[Dupont666]

One query I have is the fact that if I do up my flat (spending £XXk of money) is there an insurance I can take out for damage that is caused by the tenants if it is rented out?

wear and tear does not stick with me if I just replastered the whole joint and they scratch the pasterwork or hit it with doors (putting holes in it) blah blah blah....

same goes for damaging a brand new wetroom and kitchen...

NOTE... I would not let this out to DSS, etc anyways, just wanted to know an answer to this

[Tuscanless Ali]

anonymous said:

[redacted]

Don't know about that bit..............

My mum's tennant is a gypsy with learning difficulties and 2 kids, she has hers paid directly to my mum, been there for about 4 years without any problems.

My dad's tennant gets his from the council, and my Dad goes round there every month to pick it up, that's been going on for a year with no problems, which is more that can be said when he let houses privately.

I suppose it all depends on who you get, but I agree it's ridiculous not to pay the landlord directly.

[superlightr]

HB tenants can be fine, can be a horror - just like any other tenant.

If we like the look of a HB tenant and a LL will take HB we insist upon a gurantor who is in full time employment.

[Scraggles]

many years ago had to use HB, got it paid direct to the landlord, they were surprised at this, but happy to have it done

couple of guys locally to me rent out a few houses, their agreement is no smoking in the house, one of their tenants smoked lots in the house, place reeked of smoke and mouldy food that had fallen behind the removable bin in the kitchen, so wide variation in tenants

[Wings]

Scraggles said:

many years ago had to use HB, got it paid direct to the landlord, they were surprised at this, but happy to have it done

couple of guys locally to me rent out a few houses, their agreement is no smoking in the house, one of their tenants smoked lots in the house, place reeked of smoke and mouldy food that had fallen behind the removable bin in the kitchen, so wide variation in tenants

The government only changed the payment system in the last 18 months, the changes only applying to new claimants/tenants, with existing claimants/tenants still having their housing benefit/rents paid direct to the landlord.

As in all walks of life, it takes all sorts, and my worst tenants have been nurses and a pharmacist, so why I still take tenants who are receiving housing benefit support.

[FlashmanChop]

Got some who told the council to pay me directly.

They are hiowever, meant to pay the the "make up" - which they dont. Basically when the council worked out this couples available rent it was less then the property rent. For a year the council paid the whole lot, but this eventually came to an end.

Because of their lack of paying there own "make up" rent, this weekend I am serving them with a Section 8, and 21 Notice.

I will let you know how it goes... my gut feeling is not as easy and efficiently as some others.

Just seem to have had so much bull sh*t off them, and her old man thinks he is a little clever so tries to act it etc etc.

Hey ho.

[no1special]

I have a young single mother in one of my flats on Housing Benefits.
Shge has been there almost 6 months and I can honestly say she is the best tenant I have had so far.
OK, been a few days late with the rent on the odd occasion, but that is because HB pays rent weekly, and not in advance.
My advice to you would be to take each and every tenant as you find them. Some people are on HB through no fault of their own.
Also, I had to fill in part of her HB form which had the option of the rent being paid directly to me. IIRC though, they arent that keen on this for some reason, and will only do so in certain cases.
Hope this helps and it all works out well for you.

[Wings]

FlashmanChop said:

Got some who told the council to pay me directly.

They are hiowever, meant to pay the the "make up" - which they dont. Basically when the council worked out this couples available rent it was less then the property rent. For a year the council paid the whole lot, but this eventually came to an end.

Because of their lack of paying there own "make up" rent, this weekend I am serving them with a Section 8, and 21 Notice.

I will let you know how it goes... my gut feeling is not as easy and efficiently as some others.

Housing benefits are paid in accordance with the claimants circumstances, and when they change, so the housing benefit that is either paid directly to either the landlord or the claimant/tenant changes. Incidentally where housing benefit/rent is paid directly to the landing, the housing benefit office then hold the landlord responsible for any changes to the claimant’s circumstances, including fraudulent claims, and will attempt through the Courts to recover monies from the landlord.

The confusion I find with tenants on housing benefit, is working out the rental position at any one time, since Councils pay rent 4 weekly in arrears, as appose to tenancy agreement being rental payment calendar monthly in advanced. This means that if the tenant’s housing benefit payments are stopped, before the landlord realises this, the tenant is already two months in arrears.


Just seem to have had so much bull sh*t off them, and her old man thinks he is a little clever so tries to act it etc etc.

Hey ho.

[Wings]

Housing benefits are paid in accordance with the claimants circumstances, and when they change, so the housing benefit that is either paid directly to either the landlord or the claimant/tenant changes. Incidentally where housing benefit/rent is paid directly to the landing, the housing benefit office then hold the landlord responsible for any changes to the claimant’s circumstances, including fraudulent claims, and will attempt through the Courts to recover monies from the landlord.

The confusion I find with tenants on housing benefit, is working out the rental position at any one time, since Councils pay rent 4 weekly in arrears, as appose to tenancy agreement being rental payment calendar monthly in advanced. This means that if the tenant’s housing benefit payments are stopped, before the landlord realises this, the tenant is already two months in arrears.

[Prolex-UK]

If the tenant is in arrears the LA (council) pay direct if not its direct to them...unless they are incapable of looking after there own affairs.

Also for new claims the LA base the rent on the household makeup and then pay LHA (local Housing Allowance) based on market rents for that size property in the BMRA (broad market rent area).

So a good thing to think about before renting out is is the property too big for the family unit...if it is the LA will only pay for the size they need. So a 3 bed property for a couple will not work

Have worked in this area since 1988 so can give advice/help if required drop me a PM

Hope I've been of some help

[Wings]

Prolex-UK said:

If the tenant is in arrears the LA (council) pay direct if not its direct to them...unless they are incapable of looking after there own affairs.

Also for new claims the LA base the rent on the household makeup and then pay LHA (local Housing Allowance) based on market rents for that size property in the BMRA (broad market rent area).

So a good thing to think about before renting out is is the property too big for the family unit...if it is the LA will only pay for the size they need. So a 3 bed property for a couple will not work

Have worked in this area since 1988 so can give advice/help if required drop me a PM

Hope I've been of some help

Yes you have.

My local Council, Bristol, have a Deposit Bond Scheme, where they will inspect the property, carry out an inventory, and then for every 6 months rental period, guarantee all repairs.

[Prolex-UK]

Wings said:

Prolex-UK said:

If the tenant is in arrears the LA (council) pay direct if not its direct to them...unless they are incapable of looking after there own affairs.

Also for new claims the LA base the rent on the household makeup and then pay LHA (local Housing Allowance) based on market rents for that size property in the BMRA (broad market rent area).

So a good thing to think about before renting out is is the property too big for the family unit...if it is the LA will only pay for the size they need. So a 3 bed property for a couple will not work

Have worked in this area since 1988 so can give advice/help if required drop me a PM

Hope I've been of some help

Yes you have.

My local Council, Bristol, have a Deposit Bond Scheme, where they will inspect the property, carry out an inventory, and then for every 6 months rental period, guarantee all repairs.

your situation may be different as some councils rent off a private person (you) then act as landlord thereselves (get over shortage of council houses) you get a lower rent but its guaranteed and they normally look after the property for for you as well.

Maybe wrong as most councils I've worked for would not make themselves liable for repairs if not deriving an income.

Quite a few LA's do a deposit scheme though to help tenants get a property but same rules as in my earlier post apply.