carolinet Posted October 24, 2007 Report Share Posted October 24, 2007 Hi All, Im new here. I previously let my property to an old work collegue for the last 3 years, working full-time (who caused £2k worth of damage when he left!!). I lucky work for a property maintenance company so am currently getting repairs carried out at a discounted price. I have advised online to relet the property at £550pm for a large 2 bed terrace 5 mins from the local town centre in cheshire. A few of the responses ask if I accept DSS, to which I have replied that I would consider depending on references. One young lady seems very interested. She has a young baby on is on full benefits. However she thinks that the DSS will only pay upto 80% of her rent. Is there a 'ceiling' for rent that the council will pay? Any advise would be helpful! Many Thanks, Caroline Link to comment Share on other sites More sharing options...
Simon Dewsberry Posted October 24, 2007 Report Share Posted October 24, 2007 Hi Caroline Yes prop will be assesed and council will pay a "fair figure" for rent ....which will not be as much as you will get in the "private" market ...and yes there will certainly be a ceiling . The tenant will be expected to make up the difference and pay it to you each month.. Simon Link to comment Share on other sites More sharing options...
Trenners Posted October 25, 2007 Report Share Posted October 25, 2007 Hi carolinet, See my response to "Local Authority Bond Scheme" on this forum today. It is OK to take a tenant who needs to "top up" the HB payment as long as you are sure that the tenant is ABLE to find the additional money. Remember, HB is a means tested benefit meaning someone with a large entitlement (eg: 100% of the figure assessed by the Council in a PTD) is likely to have very little other money. No point renting to a tenant that cannot afford to pay the top-up payments because they will quickly fall into rent arrears, you will be unhappy, the tenant will be unhappy and, eventually, you will evict them If the top-up is more than £25 a month - keep away. Mark Link to comment Share on other sites More sharing options...
carolinet Posted October 25, 2007 Author Report Share Posted October 25, 2007 Thanks for the advice, it was very helpful. She would need to pay £50 a month we've worked out and although she promises she could, she could not explain how....worried me, so am not going to proceed any further! Many thanks everyone Link to comment Share on other sites More sharing options...
Simon Dewsberry Posted October 26, 2007 Report Share Posted October 26, 2007 If a 6 month ast....... ask for 6x £50 upfront in cash ( its only £300 !!) or 12 mth 12 x £50 ( £600!! ) AND get a fully referenced Guarantor ....now where is the risk ???LOL There is ALWAYS a way ! Simon Link to comment Share on other sites More sharing options...
jamandco Posted November 7, 2007 Report Share Posted November 7, 2007 Hi All, Im new here. I previously let my property to an old work collegue for the last 3 years, working full-time (who caused £2k worth of damage when he left!!). I lucky work for a property maintenance company so am currently getting repairs carried out at a discounted price. I have advised online to relet the property at £550pm for a large 2 bed terrace 5 mins from the local town centre in cheshire. A few of the responses ask if I accept DSS, to which I have replied that I would consider depending on references. One young lady seems very interested. She has a young baby on is on full benefits. However she thinks that the DSS will only pay upto 80% of her rent. Is there a 'ceiling' for rent that the council will pay? Any advise would be helpful! Many Thanks, Caroline Link to comment Share on other sites More sharing options...
jamandco Posted November 7, 2007 Report Share Posted November 7, 2007 Hi Just a thought, and others may be able to confirm this on the forum, but I'd check the mortgage small print in your mortgage details first, as to whether you as a landlord can accept DSS tenants in the first place. Some are funny like that, and they'll tell you so . I assume that if you did rent to HB people you could be in breach of the Lenders criteria ( if they found out somehow) . This begs the question though, that if your tenant is in employment when they take on the AST, but then suddenly becomes Unemployed.... should their 6 month AST be renewed or not when it comes up renewal of the lease? regards Michael Link to comment Share on other sites More sharing options...
J4L Posted November 8, 2007 Report Share Posted November 8, 2007 Good point Michael but there is a difference with people claiming full benefits and those who are working and get housing benefit. The mortgage company usually state NO DSS on their terms. There is another thread here about this situation but I can't find it at the moment to guide you to it. Link to comment Share on other sites More sharing options...
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