Let to someone on housing benefits?

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    Let to someone on housing benefits?

    Hi.
    I have 3 tenants in one of my BTL's (2 students, 1 professional), the 4th bedroom was vacant.
    One of the teanants approached me and asked if her friend could take the 4th room, but he is on housing benefits, and was currently homeless, sleeping on friends sofa's.
    I met him and he seems nice enough, but should I let him take the room?
    I have some questions I would appreciate anyone answering:

    He says he needs to contact the housing association, who will sort out all the necessary forms, peperwork, etc. Is this correct?

    When and how often will I be paid rent? Do they pay at the end of each month, and will I be waiting months for the first cheque to arrive?

    Would the tenancy still be covered by an AST?

    Is the housing association likely to cover 100% of the rent? (£250 for a single room).

    Has anyone had difficulties when renting to someone on housing benefits?

    I appreciate any help.

    Cheers

    SCL

    #2
    Most councils prefer to pay the money to the tenant and then it is their responsibilty to pay you and there is a good chance they will cover 100% rent depending on the chaps circumstances. Councils will pay in arrears, which I think is the main reason LL don't like HB tenants.
    Check your local councils LHA (Local Housing Allowance) and see what level it's at for a single person/one bedroom. This will tell you the maximum the guy is likely to get.
    Make sure he gets a guarantor.

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      #3
      Originally posted by Rayder View Post
      Most councils prefer to pay the money to the tenant and then it is their responsibilty to pay you and there is a good chance they will cover 100% rent depending on the chaps circumstances. Councils will pay in arrears, which I think is the main reason LL don't like HB tenants.
      Check your local councils LHA (Local Housing Allowance) and see what level it's at for a single person/one bedroom. This will tell you the maximum the guy is likely to get.
      Make sure he gets a guarantor.
      Also check the position re Council Tax. Presumably at the moment the young professional is paying a proportion of the set tax, (I'm not sure what the rules are exactly), the students nothing...the new tenant might alter the figures one way or another (because 4 tenants now instead of 3). Just check?
      'Pause you who read this, and think for a moment of the long chain of iron or gold, of thorns or flowers, that would never have bound you, but for the formation fo the first link on one memorable day'. Charles Dickens, Great Expectations

      Comment

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