russ295 Posted August 10, 2007 Report Share Posted August 10, 2007 hi i have a T that is wanting to move in, the rent asked is £450pcm, her salary is £108 per week. she has applied for HB, never had any experience with this route, thay are telling her that she has to move in before they will tell her how much she will get in benefit. also thay have told her that she prop wont get any help on her wages, but, if she had a baby, was earning £50 a week or not working she will get help! my ma works in the HB/C tax office and will look into it on tues for me, but was wondering if anybody has had the same probs? makes you wonder why people on lower pay bother going to work! russ Link to comment Share on other sites More sharing options...
Trenners Posted August 10, 2007 Report Share Posted August 10, 2007 Hi Russ, This is a very big topic to cover - I will try and summarise as I am the forums HB expert ! A T cannot apply for HB until the tenancy agreement is signed and they have the keys to your house because the tenancy agreement MUST be submitted with the HB application form. So, the T won't know how much HB (if any) they are entitled too until they are actually living in your investment property. If the tenant is single (ie: no kids) then they might be entitled to around £70/week HB - if they were NOT working. Given that your tenant IS working then it is very likely that they will receive £0 HB entitlement which means all of the rent will need to be paid from the wages, working tax credits, income support etc etc etc £108/week + all the tax credits means they are probably making about £750 a month which means that your £450pcm rent is looking "tight". It is true that if the tenant had a child (being pregnant is not good enough it has to be born) then they would be entitled to more HB money. If it was me - I would assume that HB will pay nothing and demand a guarantor (to guarantee the rent). If they are unable to provide a guarantor then I wouldn't touch them with a bargepole ! Good luck, Mark Link to comment Share on other sites More sharing options...
russ295 Posted August 10, 2007 Author Report Share Posted August 10, 2007 its a tricky one mark, she works for my wife and i "know" how much she really gets paid as i do the wages!, she is living with her mother after a break up (had her own place and had to sell it) and is desperate for her own pad. she would make a great T and will prob be long term, cheers russ Link to comment Share on other sites More sharing options...
Grosvenor Posted August 10, 2007 Report Share Posted August 10, 2007 Works for your wife; So you wouldn't have great trouble getting to at least 'some' money. Seems reasonable to me, you just need to work on the guarantor bit. Maybe she has a working boyfriend who can share the rent? Worth an attempt at working something out just for the certainty that you know your property will be properly treated, Paul Link to comment Share on other sites More sharing options...
SPEEDTWIN Posted August 10, 2007 Report Share Posted August 10, 2007 In my area the council normally tell the tenant verberly how much they are likely to recieve in housing benefit so they know what properties to look for. But of course there is no guaratee you will get it if you grant a tenancy. Link to comment Share on other sites More sharing options...
Simon Dewsberry Posted August 10, 2007 Report Share Posted August 10, 2007 In my area a Tenant can apply for a rent predetermination before commiting to an Ast Personally i would advise very heavily against allowing this tennacy as you have other financial connections with her if one if job goes wrong so will tenancy and vice versa - I avoid letting to family relatives and friends more then the plaque AVOID!!!!!!!!!!!!>........... Simon Link to comment Share on other sites More sharing options...
Trenners Posted August 10, 2007 Report Share Posted August 10, 2007 Hi (again), Rodent and Speedtwin have given good advice. A pre-tenancy determination (PTD) can be submitted by the tenant prior to the tenancy commencing and the rent officer will confirm the MAXIMUM amount of rent that the tenant MIGHT be entitled to. However, HB is a means tested benefit so the true position will not be clear until the (30 page) HB form is completed and submitted to the council so that they can get a clear picture of the financial position of your tenant. It is always good to rent to a tenant that you know and trust - and even better to rent to a long term tenant as you will minimise void periods and maximize income AS LONG as the tenant is able to pay the rent ! I would advise that you still try and get a guarantor (perhaps her parents) and then go with your "gut instinct". One of the downsides of being a landlord is that you have to make quick judgements about people. Some tenants that look good turn out to be terrible and other tenants - that look a risky proposition - turn out to be good ! From the tenants perspective - she will be under a lot of pressure to pay the rent to you because of the close link between you and the job etc. Finally - the really great thing about being a landlord is that you can be in a position to help someone and make a difference to their lives. If you take a chance on your tenant and it works out then she will be eternally grateful to you for helping her out. As you can gather ... I am warming to the proposition of renting to your tenant !! Mark Link to comment Share on other sites More sharing options...
GPEL Posted August 10, 2007 Report Share Posted August 10, 2007 Keep emotions out of it, whoever they are. Better an empty house than a bad tenant. Take nothing for granted and treat the interest with caution. Link to comment Share on other sites More sharing options...
russ295 Posted August 10, 2007 Author Report Share Posted August 10, 2007 cheer for the advice, no problem with the T, she is fine, worked for us for about 4 years, never had a day off, been late or had any issues. incedentaly, i had the place rented to a very close relative previous and had nowt but hassle and late payments, smoking, dog sh*t and p*ss, family eh! russ Link to comment Share on other sites More sharing options...
odecar Posted August 10, 2007 Report Share Posted August 10, 2007 Good thing as has been pointed out is that as she works for you she won't want to piss around with not paying the rent as that could lead to unemployment. Get a guarantor. Link to comment Share on other sites More sharing options...
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