How Does the System Work ?

[Richlist]

As many of you know I don't let to anyone on benefits. But I've come across a situation which I don't understand so, perhaps someone will be able to help.

I have an applicant who works full time but who doesn't have enough money saved to cover the deposit. They tell me they can 'apply to the job centre for the money for the deposit' . Is that really true ?

[Melboy]

Grief! I hope not RL

If it is possible then I would imagine the person applying would have to be on some form of DSS benefit to qualify.

[Mortitia]

I think your applicant may mean the local council. Mine has a landlord/tenant officer who can arrange such loans via homeless housing charities including Shelter.

I thought this would be right up your street RL - helping the homeless, hungry and wotnot?

Mortitia

[LLAW96]

As I understand it a claimant can apply to the Social Fund for rent in advance and not for deposit purposes. Aside from this many councils and shelter run bond schemes. I am not aware of any specific scheme run by the Jobcentre so proceed with care.

[Richlist]

Thanks for all the swift responses.

I'm of the opinion that if it looks like 'benefit' then I'm going to treat it as benefit and decline the application. There arre plenty more prospective tenants looking for top quality accomodation.

[Carryon Regardless]

We all see T's that are confused by the system/s and describe inaccurately.

I've heard of the 'emergency' payments and Bonds. I've seen where a T can have rent paid on 2 properties for a short initial period at transition. If the result is cash in my hand (well DPS) w/o common provisos then ok. Bonds are a promise and if from Shelter have no value to me. Aside the greatest value of the deposit in my mind isn't my possible very limited compensation in the event, but the deterant on the T and to cause them protect what they consider to be a substantial deposit. If it's not their money that may be lost there is no deterant.

Is it that you are having to widen your net nowadays RL ? These T's are clearly in the skint category as are the ever increasing numbers of the applicants I see.

My view of the crisis that we are in is that we are having to accept higher risk T's or have none ( a risk in itself).

I've just had a call for a flat mt since early April. He 33, has seasonal employment as an arcade attendant. Smokes, 2 kids that visit. Deposit ok (but a bit vague) G'tor ok (but a bit vague). I like that he has concern as to when the season finishes "what then". Didn't ask where, what quality is the flat, or other relevant questions. "I'm on my partners phone so don't know this number", so there are 2 of them happy in a 1 bed (small) flat, this now becoming very common.

Do I hold out or at least get some money flowing (retorical).

[Richlist]

Aside the greatest value of the deposit in my mind isn't my possible very limited compensation in the event, but the deterant on the T and to cause them protect what they consider to be a substantial deposit. If it's not their money that may be lost there is no deterant.

A very good point CoR and one that I had already recognised as a problem. As you say, if its not the tenants own money then, there is very little incentive for them to ensure its paid back at the end of the tenancy.

Is it that you are having to widen your net nowadays RL ? These T's are clearly in the skint category as are the ever increasing numbers of the applicants I see.

No I would never relax my tenant selection criteria. But, what I'm finding more recently is :

* That voids tend to be longer,

* Applicants are definitely poorer (both socially & financially),

* Often one of the couple is out of work & looking for employment,

* Some of them expect me to hold the property for up to 2 months ......whilst they serve notice or save up the initial rent & deposit.

* Often there are suggestions of overcrowding.......eg.people with teenage children wanting to take a 1 bedroom property.

* Often people cannot (or don't want to) provide references so offer 6 months in advance.

* Many overseas applicants where one partner is on a university course.......presumably part funded by British taxpayers.

* Lots of younger people in their early 20's.

* Lots of applicants that struggle to string a sentence together and are virtually incapable of having a conversation.

Then there are the old chestnuts such as appointments not met and increasingly people turn up late. Younger people seem to think that eg a 2.00pm appointment means 2.30pm ! etc etc

OOh.....the joys of landlording

[Grampa]

My understanding of the council benefit system is a cash deposit is not paid out any more. About six years ago the council down here did give/lend the funds for a deposit but dont anymore and the regulations should be the same in all areas. What is availible now is a bond which is a council guarantee to pay for damages only (not arrears) up the same as 6 weeks rent. I use it a fair bit and it works for me.

I am sure I had one working tenant who was able to get it. (but cant remember for sure)

There are under benefit schemes or charities where the tenant may be able to get the funds such as a crisis loan which they will have to pay back same as the bond if it is claimed against.

But it is a very good point that if the deposit has come out of the tenant pocket upfront it is more of an insentive to look after the property.

But saying that if you had a good guarantor as back up and or RGI I wouldnt rule them out as a tenant.