No DSS: Should you let to Tenants on housing benefits?

Many Private Landlords turn away Tenants that are on housing benefits, and some of these Tenants say that this is unfair. So why do they do it?

There are actually many reasons why a Landlord might choose to refuse to let their properties to DSS tenants. Read on to find out more information on letting to those on housing benefit.

Rent paid in arrears

If you rent to employed Tenants, or those not on benefits, as the Landlord you receive payment in advance. However, when you let to Tenants on housing benefit, the rent can be paid directly to you the Landlord, but the payment is in arrears – so at the end of a term rather than in advance.

Deposits can be an issue

Those who are on housing benefits often don’t have a deposit that they can pay upfront. Sometimes local governments can help with a deposit, but council schemes can be slow to start and be processed.

Admin

The administration of housing benefit itself can be very slow too; payments can start and stop, often without notice. Also councils have the right to take money back from the landlord, if the Tenant was claiming fraudulently.

Insurance

Some buildings and contents insurance premiums can be higher if a Landlord lets to DSS tenants, and sometimes insurance is refused altogether.

Buy-to-let

Some buy-to-let mortgage terms do not allow Landlords to let to housing benefit Tenants or those on income support.

Letting to DSS Tenants

However, some Landlords simply don’t let to DSS tenants because there is a belief that DSS Tenants won’t take good care of the property and will miss payments. However, such beliefs are more often than not unfounded and if at all will only apply to a minority of individuals.

If you’re a Landlord and you decide to let to someone on housing benefits, then there’s a number of things that you can do to make sure that they are an appropriate Tenant before you let to them.

Ask:

  • What makes them a good Tenant
  • For character references from previous Landlords
  • For a guarantor
  • For the money to be paid directly to you

It’s possible to have a successful renting relationship with DSS Tenants if you go about it in the right way. It opens your property up to a number of prospective Tenants that it might not have already done.

If you decide to let to Tenants on housing benefit, then you can also get your property listed on websites such as DSS Move.

By | 2016-09-06T08:01:19+00:00 February 10th, 2016|Advertising, Deposits, News, Referencing, Tenants|0 Comments

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