New tenant

[r16chh]

Hi,

Have told new tenant that there is a month in advance and a bond to be taken if he wishes to have my house.

He will be claiming HB and topping up himself, but has asked for his advance rent to be refunded once the council have paid me direct as they pay inarrears.

Does this sound ok to you ?

I have one other tenant (different house) who pays me direct via HB / topup and they paid month in advance and bond, and I never refunded there advance rent.

What is the best way to go.

Cheers

Richard

[Trenners]

Hi Rich,

I have a huge amount of experience in dealing with HB tenants which is why I am the "resident forum expert" on the DSS !

I think your tenant's request is very reasonable - I often take rent in advance (from either my Council or the tenant) and I always refund it when HB pays me.

The rent in advance loan (from the tenant's perspective) is a huge deal as he has probably borrowed it from the family / friend because DSS tenants don't tend to have any money themselves - but from my perspective it is no problem to refund it as I am in receipt of their housing benefit and I still have their Security Deposit as well.

You will create a good relationship and goodwill with your tenant that they will hopefully repay (by renting from you for years and years and years).

My advice then - give him the rent in advance back when you receive the 1st HB cheque.

Good luck,

Mark

[r16chh]

Thanks for that Mark.

[Simon Dewsberry]

Personally i would say that if rent is due on the first of the month in advance, then that is when it is due !

If t can convince HB to pay in advance as per my terms(normal terms) , then of course i would be happy to refund!!!!

Rules need to be clearly set down and followed from the start ....HB can, in some cases, take a couple of months to come thru and you will set a dangerous precedent that if HB fouls up for ANY reason............ T will expect YOU to WAIT for it to be re-established,.... setting a precedent that they(t) are not, in fact, responsible for rent, HB IS...??!!!!!

I do appeciate that HB pay in 4 week arrears pymts but i think we can agree that it is acceptable and prudent to be paid at the start of the rental period NOT the end !!

This is not a precedent i even want suggested, so i make it very clear from the outset that T not HB is responsible to ensure rent is paid on time every time .......and this starts right at the beginning!!!

I also will not take a T HB without an A1 squeaky clean Guarantor who is made very aware that the minute HB screws up (for whatever reason......usually not the T fault!!) i will be looking to them(G) for immediate Payment...

Unless of course you have a flexible payment arrangement with your lender where you can defer payment until HB sorts itself out !!!!! ...............NO ??? ..........................NOR ME !!!!!!!!!!!!!!!!!

Simon

S

[Trenners]

Hi Rich,

I don't disagree with what Simon advises.

However, if you want to be paid in advance (rather than arrears), if you want to avoid dealing with the benefit office, etc etc then the solution is simple - don't take Housing Benefit tenants at all.

In my opinion, if you decide to accept HB tenants then you should also accept the "HB system" - meaning having to deal with the benefit office (and their employees), receicing rent every 4 weeks in arrears, having claims suspended for no obvious reason etc etc etc etc

Guarantors are OK - but most HB tenants can't provide them - rent in advance is good for landlords (who get double payment during the 1st month of the tenancy) - but most HB tenants can't afford to pay it.

In summary - as a landlord - you either accept HB tenants or you don't. In my opinion !

Mark

[SPEEDTWIN]

Interestings points made by both mark and rodent. I accept a lot of HB tenants but i aways insist they pay their own deposit and first months rent and from experience it is the best way for me. Sometimes the first months rent comes in the form of a chq from the council which is a loan from the tenant which they paid the council back at say£10 pw.

HB tenant can be really good but some are bloodly awful and when the hb money doesnt turn up is is allways the councils fault (sometimes it is) but mostly it is because the tenant hasnt sent off some form or another and if you have a mortgage to pay they dont care.

If they paid the first months rent then at least you have a buffer and if the rent gets paid in full by the council it will be returned when they move out.

You could hold on to it for say six months and if the HB gets paid with no stopping and starting (thats if it comes to you) or changes of amounts which you will have to covert to pcm then give it back.