DSS or not???

[markc_61]

Hello,

I'm new to this and I have my first property currently available and waiting a suitable tenant.

My Letting Agent asked if I would consider DSS applicants and I said I would have to look into it as I know a lot of Landlords won't Let to DSS Tenants. I can see the obvious drawbacks of someone who is relying on DSS to pay their rent. But I would appreciate some guidance as to the pitfalls of Letting out to DSS tenants.

Any advice would be very much appreciated.

[Adam]

I have just recently rented a property out to a single mum on dss.I was'nt originally going to go down but she responded to an advert.I met her and after getting a reference from her previous lanlord decided to go for it.

The housing benefit office will carry out a pre-determination on the house to tell you how much rent they will pay for this person to live there.Just make sure the rent is paid into your account and not the tenants.Hope this helps.Adam

[Trenners]

Hi,

I, too, was not keen on DSS tenants when I first started to let property.

My experience has taught me, though, that single mothers are usually very reliable and take very good care of my property - as well as paying the rent on time. Tenants on incapacity benefit have also proven to be good, reliable and long term tenants !!

I now have a number of DSS tenants in my properties who are receiving "income support or incapacity benefit or both".

I think it is wise to judge each application on a case by case basis.

Mark

[markc_61]

Thanks for your replies. You've both confirmed what I was thinking. Seems to me that provided your tenant doesn't abscond you are pretty sure of getting your rent (or most of it!) every month.

Thanks Mark

P.S. If I get a DSS Tenant and it proves a problem I'll let you all know!!

[Ann Teak]

Hi,

I have just had a young mum look round. She is ideal and her parents only live on the next street so she has all the support that she needs there. Her Father is happy to act as a guarantor, and she will be claiming housing benefit.

I was not originally going to let to DSS, but as you have all found circumstances change your mind.

My only question is what do I do now? Is it up to them to sort out the DSS or do I have to make some sort of application.

Any help much appreciated.

Thanks.

[jackjay]

Hi re the DSS best to get a copy of everything, get recites from the DSS and most of all get the tenant to fill in the the third party agrement section of the form otherwise you will have no rights if you try to contact the HB

I have had a lot of problems with the benifit sections and tenants even more so now that we are in a LHA pathfinder area. where the landlord does not recive the rent direct it is sent direct to the tenant.

If you need more info on LHA it would be best to start o new thread

Jack

[F-Prop]

Hi,

Just check your mortgage company will allow DSS tenants, most of the ones I have seen will not... unless you are lucky enough to have bought the house with cash!

Trevor.

[gizzmo]

I agree with all the above - I was dead against DSS tenants initially - and then my tenant fell on hard times, lost her job, and fell into arrears - finding it very hard to make the rent payments. She was in a joint tenancy with her partner who also subsequently left her - but has agreed to maintain his obligations on the Tenancy agreement - although she has to pay all the rent now.

After a couple of months of to-ing and fro-ing with her and the DSS, the housing benefit comes in every month regular as clockwork. There is a slight shortfall which she makes up herself every couple of months, and everyone is happy.

I admit though that it's not ideal - and my preference would still be to get a professional tenant. But DSS is definitely not as bad as I had originally thought it would be. I do quarterly inspections and she looks after the place very well.

[Liz14]

DSS Tenants:  I never had a problem in having DSS tenants but one of the reasons you see "No DSS" on adverts for letting is that some insurance companies won't allow them.  Please be aware that if you are paid HB direct from DSS if the tenant fails to disclose a change of circumstances the DSS will claim monies back from the landlord and NOT the tenant.

[Richlist]

There is no such thing as DSS.

There are tenants / applicants who are in receipt of housing benefit and that is presumably what this thread (from 2006) is about ?

Please note that:

* Many mortgage lenders and insurers rules DO NOT allow borrowers to let to people in receipt of housing benefit. If you do you will be in breach of your mortgage terms and conditions AND it will invalidate your insurance.

* If the property is leasehold then many freeholders / managing agents will not allow letting of property to people in receipt of housing benefit. If you do you risk forfeiture of your lease.

Before any landlord considers a housing benefit applicant they need to ensure they are permitted to do so within the rules.......usually they are not.

[Carryon Regardless]

If we're going back over all threads since 2006 we'll be here for a while, or maybe just you be Liz - enjoy.

[Grampa]

2 hours ago, Liz14 said:

DSS Tenants:  I never had a problem in having DSS tenants but one of the reasons you see "No DSS" on adverts for letting is that some insurance companies won't allow them.  Please be aware that if you are paid HB direct from DSS if the tenant fails to disclose a change of circumstances the DSS will claim monies back from the landlord and NOT the tenant.

That isnt quite correct the regulations state a a number of situations and of who the payment is claimed back from. But the main one is the person who failed to disclose a material fact. As most overpayments are caused by something the tenant  has done (or hasnt done) as long as the landlord isnt aware they generally wont claim from the landlord but it wont stop them trying and a lot of landlords just pay up without question.

[topshelf]

Ref the insurance, I have two properties in the next street to each other, the insurance for the house with DSS or housing benefit tenants is £30 more than the working tenants, identical houses,  so its worth telling the insurance company if you have benefit tenants as they may not pay out for a claim. I do have one buy to let mortgage with the housing benefit restriction on, I now look for buy to let mortgages without this,    its only a matter of time before one of my tenants comes out of work and defaults onto    benefits, and what do you say then ? you have been a great tenant for the last 3 years but my mortgage conditions will not allow you to stay here any longer, thanks and here is your notice to leave ! not fair at all 1  

[Richlist]

I can't believe you are even thinking along those lines.

I tend never to put my tenants first.....therefore if it's unfair to them it's of no concern of mine  

It makes perfect business sense to comply with the lenders t & c's in order to protect your property and your credit rating.

It's a business, fairness doesn't come into it.

[Melboy]

We had a case here a couple of years ago where a house was gutted by an electrical system by-pass fault. The tenant was on housing benefit and growing cannabis in the loft.  The insurance company refused to pay out as they had not been told of the tenant's (un) employment situation by the landlord.

Landlord went bankrupt and the mortgage company sold the fire damaged house at auction.... for not a lot of money.

So if anyone is reading this be aware that insurance companies and mortgage companies will adhere to the small print of their contracts and not pay out to you.