Renting your flat to people on HB/Deposit scheme

[Putthatbookdown]

Landlords I have 2 families in such a situation wanting my flat Would you let to them?

I would because I have been one of those families who found it almost impossible to rent on HB.

If you don't have the restrictions on your mortgage and they have good refs then go for it.

For me it would be the references. If they are good and genuine then it should be fine. If they dont have references I wouldnt....

Wouldn't touch it with a barge pole. Did it once before and had massive problems despite good references. If you can't guarantee the rent, why take the risk? That's why a lot of mortgage lenders won't allow you to.

Can you guarantee your tenants won't lose their jobs then HomeIs?

Most people who rent privately are one or two missing paydays away from not being able to cover rent I should think.

If you don't want to risk not getting paid your rent then don't become a landlord.

does that apply for people who are on a mortgage, too? Ghastly generation about tenants.

OP, you can get rent guarantee insurance which will cover HB tenants in certain circumstances, and is a good idea anyway. Costs about 6% of the rent for 100% cover.

We have found that people using the deposit scheme have usually lost their last deposit.

No. Badly - really badly - shafted by a tenant on housing benefit.

That's quite a generalisation there MrsBartowski. I rent privately and have sufficient savings to pay nearly 7 months rent, should something go wrong with my work. I also pay 6 months rent in advance so am hopefully not likely to leave my landlord short of rent.

The 7 months savings are in addition to having the next 6 months rent ready at the right time.

No. Not ever, even the nicest people in the world. Not a chance. If it turns out the claim is fraudulent (and it may not be at this time but could be later) you will be liable to repay the rent received. My brother lost a lot of money because of this. Please be aware of this.

I wouldn't, in all the years I have rented properties have only let to HB once. Worst mistake ever, not only did they not pay, they did a bunk leaving property full of rubbish and had taken a hacksaw to the kitchen.
They had references too !

Yes you're right MirandaWest. That was quite a generalisation. But I have to say that your case is unusual.

But then again, so is saying that all HB tenants will shaft you. Sadly, that generalisation sees many many families homeless every year if they find themselves needing to claim some help.

I don't think it's a generalisation that all or even most will. It's just that you have absolutely no comeback if something does go wrong. Having seen the results of that I would never put myself in that position.
As an aside, very often mortgage lenders or insurance companies won't allow it anyway.