gazzg Posted February 7, 2009 Report Share Posted February 7, 2009 We are just about to rent out our first property and I wanted some advice :-) 1. We are planning to join the RLA - would you say this is the best landlords association to join as I noticed there was a few others we could join but I liked the look of this one? 2. I have signed up with the Deposit Protection Service ready to put their deposit in, but I've since read about taking 2 months rent in advance instead of 1 month and a deposit? Any thoughts on this? We already have a potential tenant and I have told her verbally that we will be taking one months rent and one months deposit, so if we change this to 2 months rent in advance, I guess I would need to give her a reasonable reason for the change. 3. Our potential tenant is working and is providing a landlords reference and employer reference, she is a single mother and claims a small amount of housing benefit but pays most of her rent herself. I have no problem with this personally but just want to check if I need to be aware of anything regarding the housing benefit side of things, as I've read a few things on here where people seem to avoid housing benefit, just wondered if there was any reason? I was a working single parent myself some years ago and I was in receipt of housing benefit and never had any problems. But as I say I'm new to the 'landlord' side of things so want to be sure I'm aware of any pitfalls :-) If anyone can think of anything else worth pointing out to a newbie, please feel free, I've read through most of the posts on here (including the horror stories) so I really want to be as fully prepared as possible :-) Take care Laura x Link to comment Share on other sites More sharing options...
Trenners Posted February 8, 2009 Report Share Posted February 8, 2009 Hi Laura, My advice would be to join the National Landlord Association (NLA) - if you decide to join any of the associations - as they operate their own tenancy deposit protection scheme (http://www.mydeposits.co.uk) and offer discounts to member landlords. Regarding 2 months rent versus 1 months rent + deposit. Rent is Rent. Deposit money is Deposit money. If you take extra rent then you cannot use it to repair your property if the tenant damages it (because it would not have been rent money it would have been deposit money). In other words - you can only use extra rent money to gain compensation against the fact that the tenant didn't pay you rent. I find most Housing Benefit claiming tenants to be good people but the very bad few spoil the party for the rest ....... however, a lot of mortgage lenders have No DSS in their small print (best check) and most building insurers also have that term in the small print of their policies. In my opinion, it is really hard for a landlord to comply with these rules (as a working tenant can easily lose their job and start claiming DSS benefits but claiming Housing Benefit is not a reason to evict a tenant according to the Housing Act). You probably already know that Councils can be slow to process Housing Benefit claims and that they are always paid 4 weekly in arrears. This means that your tenant will probably struggle to pay some or all of the rent whilst the Council assess the claim ....... Hope that helps ....... and good luck, Mark Link to comment Share on other sites More sharing options...
vinvin Posted February 8, 2009 Report Share Posted February 8, 2009 1. NLA is probably a bigger and more National regonised association (I'm not plugging them, since I'm not a member of the NLA or any others, but would opt for them) 2. Dont mess around with 2 months rent in advance, just no point in screwing around withe the system you will gain nothing. One months dep and one months rent is the normal........sometimes people take a month and a half as deposit, but these days less important with the deposit scheme. 3. HB is always paid in arrears, i seem to recall by two weeks, so this can be a pain when collecting the rent unless the T has all the money up front and just keeps topping up with the HB. As a single mum, maybe OK unless obviously she has a guy floating around, and here benefit stops, i.e. she becomes unintitled. Make sure you are totally aware of ALL her circumstances, i would suggest you ask for last (AND PREVIOUS before the last one) and ask for refs, or better still speak with them over the phone, people are inclined to tell you more over the phone than writiing it down) We are just about to rent out our first property and I wanted some advice :-) 1. We are planning to join the RLA - would you say this is the best landlords association to join as I noticed there was a few others we could join but I liked the look of this one? 2. I have signed up with the Deposit Protection Service ready to put their deposit in, but I've since read about taking 2 months rent in advance instead of 1 month and a deposit? Any thoughts on this? We already have a potential tenant and I have told her verbally that we will be taking one months rent and one months deposit, so if we change this to 2 months rent in advance, I guess I would need to give her a reasonable reason for the change. 3. Our potential tenant is working and is providing a landlords reference and employer reference, she is a single mother and claims a small amount of housing benefit but pays most of her rent herself. I have no problem with this personally but just want to check if I need to be aware of anything regarding the housing benefit side of things, as I've read a few things on here where people seem to avoid housing benefit, just wondered if there was any reason? I was a working single parent myself some years ago and I was in receipt of housing benefit and never had any problems. But as I say I'm new to the 'landlord' side of things so want to be sure I'm aware of any pitfalls :-) If anyone can think of anything else worth pointing out to a newbie, please feel free, I've read through most of the posts on here (including the horror stories) so I really want to be as fully prepared as possible :-) Take care Laura x Link to comment Share on other sites More sharing options...
gazzg Posted February 8, 2009 Author Report Share Posted February 8, 2009 Thanks for all the advice it is much appreciated :-) Someone has mentioned to me the Guild of Residential Landlords - anyone else have any experience with these guys? Let me know Take care Laura xx Link to comment Share on other sites More sharing options...
vinvin Posted February 8, 2009 Report Share Posted February 8, 2009 I woud stick with the previous advise of NLA...........if you only have the one property, the smaller ones dont have so much backup for research and add ons. Whilst NLA offer discounts on deposit protection..............DPS make no charges at all Someone has mentioned to me the Guild of Residential Landlords - anyone else have any experience with these guys? Let me know Take care Laura xx Link to comment Share on other sites More sharing options...
Reg Posted February 8, 2009 Report Share Posted February 8, 2009 Everyone has different experiences with different types of tenants (and you can't tar everyone with the same brush). However, I personally wouldn't take on a housing benefit tenant unless they had a cast-iron guarantor (who is reference checked). I took on a DSS single mum and unfortunately for me, appearances were deceptive, I did the full reference checks, but luckily I insisted on a guarantor. After a year or so, things turned sour, due to persistance late rent payments and changes to my property without permission (installing dimmer switches without using a qualified electrician - just one of multiple examples). In the last two months of the tenancy the guarantor was paying me the rent as tenant refused to and tried delaying tactics with the rent to blackmail me into paying back their full deposit (which I paid back in full BUT had never threaten not to). I still had to hire a heavy when they vacated the property, due to constent abusive behaviour and threats from her boyfriend who was living there more or less from the start according to later reports from the neighbours (which could have jepodised the housing benefit). My advice, just be careful if taking on DSS tenant, and expect possible delays with the rent from start, possibly to finish. One valid reason for my old tenant not paying rent on time was postal strikes, but alot of the other reasons weren't valid. But, in my opinion, a good guarantor is crucial and can save you alot of fuss. Link to comment Share on other sites More sharing options...
juliebristol Posted March 27, 2009 Report Share Posted March 27, 2009 There is a Landlord Manual that is produced by Bristol City council, you can see it on the website www.privatehousinginformation.co.uk Link to comment Share on other sites More sharing options...
Recommended Posts
Archived
This topic is now archived and is closed to further replies.