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Would you let to a tenant who is on benefits?

(16 Posts)
chewiecat Mon 16-Oct-17 09:41:25

We have a 1 bed rental in London, which is coming up for rent in November.
The prospective tenant is a single 50 year old male with good links to the community. He is on benefits due to a disability but has a guarantor with income in excess of 80k pa. He can move in straight away..

What are your pros/cons of letting to someone on benefits?

Babyroobs Mon 16-Oct-17 15:25:52

If it's a long term disability and his benefits are likely to continue long term then maybe I would consider it. I would salso consider when your area switched to Universal credit as that is when many claimants are starting to have problems with the housing benefit element.

LostMyMojoSomewhere Mon 16-Oct-17 15:27:05

I would also check with your lender (if any) as this is not permitted in the terms of some BTL mortgages.

DaisyRaine90 Mon 16-Oct-17 15:27:11

Yes, of course. But get landlord insurance 😊

sweetheart Mon 16-Oct-17 15:30:06

I wouldn't. One of the companies I do work for had a tenant on benefits and her situation changed which meant her benefits no longer covered the rental of the property. They have had a devils job to get her out the property and it has cost lots of time and money. The process to legally evict someone is very lengthy so before you do you should consider if you can afford to loose 6months + rent if you need to go down this path.

Orangebird69 Mon 16-Oct-17 15:32:28

If the guarantor checks out then I can't see why not.

PotteringAlong Mon 16-Oct-17 15:36:27

Not on universal credit I wouldn't.

confusedlittleone Mon 16-Oct-17 15:42:25

If you have a mortgage you need to check the terms- you may not be able to

Laura2018 Mon 16-Oct-17 15:47:06

We've had the same tenant on benefits for 3 years. They are a lovely family, keep the house looking great and always pay on time. You can get bad tenants regardless of if they are on benefits or not!

NerrSnerr Mon 16-Oct-17 15:48:40

When I rented out a flat it was in the terms and conditions of my BTL mortgage that I couldn't rent to someone on benefits.

chewiecat Mon 16-Oct-17 17:42:50

Pottering why not on universal credit?

soapboxqueen Mon 16-Oct-17 17:51:41

You need to check the fine print of mortgage, insurances etc as some won't cover it. I've let to tenants on benefits mostly not a problem. One who was always late with the rent but paid up in the end.

soapboxqueen Mon 16-Oct-17 17:51:43

You need to check the fine print of mortgage, insurances etc as some won't cover it. I've let to tenants on benefits mostly not a problem. One who was always late with the rent but paid up in the end.

specialsubject Wed 18-Oct-17 18:42:05

If the mortgage allows it.
If the insurances ( buildings, rent guarantee, legal expenses) allow it.
If you are sure that the council won't come after you for wrongly paid benefits.
If the guarantor agreement is real and ongoing.

chewiecat Wed 18-Oct-17 21:16:28

The curious thing though is that the flat is on the 2nd floor and is only accessible via 3 flights of very narrow stairs.
If he does have a disability, would he even manage that?
Although i suppose there are many types of disabilities...

specialsubject Thu 19-Oct-17 09:23:51

You need to get the answer to that question to be sure the person that is moving in is who you think it is.

There's a drug dealer scam - a respectable looking person signs up, gets a cash bribe and vanishes. Then you have a trashed drug den and they can sit there for months without paying until you get the bailiffs.

Check out anything that doesn't add up. An honest tenant will give you honest answers.

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