Meet the Other Phone. Protection built in.

Meet the Other Phone.
Protection built in.

Buy now

Please or to access all these features

Property/DIY

Join our Property forum for renovation, DIY, and house selling advice.

Housing benefit - how does it work for landlords? Help please

3 replies

OurSpoonsCameFromJohnLewis · 23/09/2013 20:54

No idea if this is the right place so will repost elsewhere in case that's better! We're acting as landlords of my grandmother's old house (she's in care and the rent goes towards her fees). All decisions made by us.

The tenants have just moved out. We're advertising for new ones, without much success. We'd advertised for no benefits, but someone has phoned who says she gets or will get housing benefit - currently living with parents. I need reassurance - or not - that this would be ok.

My concerns are:

It's a 4 bedroomed house. She's a single unemployed mother with three small children. Would housing benefit pay enough? I know I think "bedroom tax" doesn't apply as not social housing BUT does a similar calculation go to how much HB you are entitled to?

She says they pay in arrears. She seems to think she could get us the deposit and month's rent in advance that we want. Is arrears correct? No way is anyone moving in without deposit and rent.

She says HB can be paid to landlord direct. I've looked and can't see this on internet, is it true? All seems to suggest goes to tenant.

Finally - I seem to recall stories about how if you're a landlord whose tenant is on HB and then found not to be entitled to it, the historic monies paid can be reclaimed from you the landlord and since tenant unlikely to have assets to repay you if you sue them, you're stuffed. Is this true? Does it apply if money goes to tenant who pays you, or only if paid directly?

Any landlord words of wisdom much appreciated. I know benefits doesn't equal bad tenant, but we need to be sure we're using this asset as safely as possible.

Thanks v much (sorry it's so long)

OP posts:
MrMayoNessie · 25/09/2013 21:51

I would have a look at your local council website for info relating to them it looks to change from council to council.
From what I remember, Local Housing allowance depends on the local council and also how many bedrooms are actually needed, so if there is Tenant, with two small boys and one girl then the council will prob deem that they need three bedrooms. This may help
lha-direct.voa.gov.uk/search.aspx

Sunnyshores · 26/09/2013 11:11

Tenants on HB with young children, can be great long term tenants - this is a gross generalisation but my experience . . . .they dont tend to move on because of schools, or change jobs and move to another area, dont go out and get drunk, have loads of mates over, get too busy to clean.

BUT it can also be an absolute nightmare. Benefits are paid 4 weeks in arrears and often late, overpaid, underpaid, stopped for no reason, and yes reclaimed from the landlord if overpaid. You will not get it paid directly to you unless the tenant is vulnerable and unable to manage her own financial affairs, or is 8 weeks behind in rent payments.

She wont receive full payment for a 4 bed house, they will say any same sex children, or very young, can share. You will be able to ask her to provide a letter from HB saying how many rooms, and what payments she is entitled to.

How is she planning to pay any shortfall?

I would meet the prospective tenant at her current house to judge her character first (as I would HB or not). The its up to you to take the risk with HB office.

Good Luck!

sh77 · 26/09/2013 18:17

I gave HB tenants a go. Never again. I only managed to get it paid direct because the tenant was a nightmare and I made it clear to the DSS that I did not think he would pay me and i was worried about my mortgage. Luckily, I dealt with an understanding person. I went 8 weeks without any rent. It was an absolute nightmare with 3 or 4 calls a week to get issues resolved. Do not rely on HB being paid direct to you. I think it officially is allowed if more than 8 weeks in arrears.

New posts on this thread. Refresh page