To accept tenants with DLA?

[thatverynightinmaxsroom]

I'm a LL of an inherited property, not a professional landlord, and I'm really very ignorant about this.

I've been asked if I'd accept a tenant whose rent would be paid directly by DLA.

Is there any reason I wouldn't or shouldn't accept?!

No I wouldn't. The excuse of 'oh my payments have stopped unexpectedly or I haven't been paid yet' is far too convenient.

That can happen with any form of income though.

I always think its a shame and really short sighted for LLs to discriminate against people who are on benefits. Housing benefit means that your rent will get paid on time. Often much more secure than someone on a minimum wage job. People with really decent jobs arent going to want to rent for as long anyway as most of them will want to buy.

My mum used to be a housing officer, and she said it was often a shame when someone who had their rent paid by HB would sometimes come in and be all happy to tell them that theyd got a job, and then more often than not, it would be then that theyd start getting into arrears and struggle with managing the money and then theyd have no choice but to give notice/evict, when it had been fine for so long when they got HB.

The discrimination against benefits is almost always about judgement of what you think their lifestyle is like, when really as a LL you should just be concerned about whether the rent is paid and the house is not damaged.

The thing that would make me wary about this isn't anything to do with the prospective tenant, but the current benefit changes. I'd be concerned that if the tenant had to change from DLA to PIP that it might not go smoothly (there are some absolute horror stories out there), and if they are not able to work to supplement the disability benefit then it could put you in a difficult position with regard to rent / eviction.

I wouldn't be concerned if it was a working person who also claimed DLA, as there's another source of income they could use for living costs while the benefits get sorted.

The gov would need to start with the mortgage and insurance companies Agreed - that would be a good place to start

I think if people have good refs that actually check out then benefit recipients should be ok but the fact that you have been lied to would be an automatic no.

Not on the basis of receiving housing benefit though, which is probably what is actually being discussed. DLA does not pay rent

Thanks for the responses all. I don't know anything about this individual's situation - just had a message from our letting agent with direct wording from the prospective tenant which says 'I am in a private property with XXX properties but need a bigger property. They receive their rent direct as I am in receipt of DLA. I was wondering if your company does the same.'

(I am not a company but I guess they mean the letting agent.) From your responses it sounds like it's not DLA that this other agency is receiving so I really need some more information.

Thanks all, this is very helpful.

You can work AND claim dla

Check with insurance and mortgage companies.

Consider asking for a guarantor.

Just an FYI my mum was on DLA and it got stopped abruptly, moved onto PIP and her payments changed and so did her classification ehich meant the amount she gets is different

Just to add, it is illegal to discriminate in housing on the basis on disability under the Equality Act

No ones doing that. LL are refusing people who rely on benefits to pay their rent is not discriminating against disabled people.

It's not 'you can't live here because you're disabled' it's, 'you can't live here because you have no source of reliable income'.

It makes very little difference.

Some mortgages might refuse but if the property isn't mortgaged then who knows ? Who cares ?

There was another thread on here where the landlord wants to sell and everyone is saying to the OP don't move out, make them take you to court so the council will give you somewhere else to live- this is why I'd never take anyone on benefits. Much harder to get rid if you ever needed to.

Ahh, from the wording of that message, it sounds like it has been short-handed. I would think that the prospective tenant is disabled and receives Disability Living Allowance, and as a consequence of their disability is unable to work, so therefore receives Housing Benefit, which is paid directly to their Landlord.

If you are able to rent your property to them, that can be a really secure tenant. The things to find out are that your mortgage will allow you to let your property to a tenant in receipt of Housing Benefit (it shouldn't matter, but sadly some mortgages specifically exclude it), and that the tenant will be eligible for the Local Housing Allowance (rent) that will cover your rental charge. If they are entitled to less than you charge, check that they are prepared to top it up from their DLA.

@LouBlue1507, I would argue that a blanket ban on housing benefit claimants is indirectly discriminatory against those with disabilities but I am not sure if there is any case law on it.

The thing is, benefits ARE reliable income. Much more reliable than many jobs.

Its just becoming so damn difficult for people on low incomes to access tenancies at all now, because even working people are expected to have guarantors. I know several people who are homeless and sofa surfing because they cannot get a guarantor and are on benefits. These are good people who need a home desperatly and have regular money coming in and would take care of their homes. It used to be so much easier to find housing. Now its just ridiculously hard.

"BeepBeepMOVE

There was another thread on here where the landlord wants to sell and everyone is saying to the OP don't move out, make them take you to court so the council will give you somewhere else to live- this is why I'd never take anyone on benefits. Much harder to get rid if you ever needed to."

Any tenant can do that, regardless of whether they are on benefits or not. The process would be exactly the same.

These people either work and receive dla or get esa and dla . If the latter is the case they will get housing benefit in any case. Have a discussion with them about everything communication is always best! I get sick of seeing landlords refusing tenants on benefits, I have worked with many on benefits and most were amazing people in difficulty and just needed a chance! Landlords who did give them a chance didn't regret doing so!

No no no OP. Don't do it.

As others have said, at one time benefits were paid directly to the landlord/letting agency which worked fine, then someone in their wisdom thought it would be a good idea to pay it direct to the benefits claimant.

This was such a mistake, as obviously a lot of these people would chose to spend the money on anything other than the rent.

You will find that a lot of letting agents don't deal with those on benefits. We are landlords and our agents have said experience has taught them to never deal with them.

There are plenty of decent people out there in work, paying taxes who are looking for properties to rent.

yeah thats got absolutely nothing to do with benefits. The advice to stay put is actually the advice shelter give. The majority of people whether on benefits or not, would just move out into another privately rented property as soon as they could. It would only be the ones that couldnt get another tenancy because of the exact problem of landlords refusing tenants that are perfectly willing and able to pay rent. Youre all causing the problem for each other, and then blaming the tenants

Not sure if mentioned, but perhaps they mean the housing benefit is paid directly to LL because one of the reasons they are on DLA is due to not being able to budget?
I know budgetting is section of the PIP assessment atleast. I've also heard of some LAs making the decision to pay HB directly to the claimants, unless there is a specific need (ie MH) for it to go to LL.

They could be on a six figure salary and claim DLA.

It isn't means tested in any way at all.

That's interesting DanHumphrey.

It looks like I need to get more information and also check that the property is affordable for them - rent is quite a bit more than the figures a PP quoted upthread (though I understand those were DLA and we are actually talking about HB here..)

Councils certainly round here do not want to pay housing benefit directly to the landlord anymore. If the tenant has been in the present property for a long time the payment could have been set up under the old rules. This won't apply to a new tenancy. The only reasons my area accepts is unable to manage money themselves or 8 weeks in arrears.
That said there can be as many problems getting rent from working tenants . Take each case on it's merits.
You can get insurance but usually not through the online insurers but a broker.

Well I wouldn't let to anyone in a job the 'oh i' ve been fired' or 'oh there were no shifts' or 'payroll screwed up' is far too convenient.

A disabled person has a good regular income from the government. If their condition is long term, it's super secure.