New tenant, possible scam?

[BeckyButters]

I'm showing someone around my rental property today. They contacted me asking if I'd take on someone on HB. Having read various threads on MN I realise how hard it can be to find private rental when you are claiming HB so I didn't want to turn her down immediately.

However, certain things she's said has set my spidey senses tingling and I want to go forewarned and forearmed.... She's offering two months rent up front, offering to bring cash and paperwork for references, saying she's 100% sure she'll like the property as she's lived locally before. I asked in an email how she would cover the (not insubstantial) shortfall between the local housing allowance and the rental value. She's told me she's on £1900 UC a month which seems high but I've no idea. In addition to DLA for one of her two sons and PIP for herself.

I'd get a third party tenant check anyway but wondered if this sounds right, £3500 income per month which also includes £400 child maintenance?

Even if it’s true I wouldn’t go ahead because someone relying so much on benefits is at the whim of changing govt policy, it’s just not secure enough. I wouldn’t want to be paying a mortgage and relying on someone receiving benefits in order to do so.

How is this any different than someone in employment losing their job?

Btw OP she sounds like a perfectly normal applicant. Nothing ringing any bells there. Her figures stack up.

But- none of it matters because as a landlord you will be doing full credit and reference stuff bank statements and proof of income checks yourself anyway, regardless of who applies. Right?

Your tenant would be claiming Housing Costs via Universal Credit, not Housing Benefit

Just to update, just shown her round and my gut instinct is she's a genuine good tenant. She brought her two boys who went to primary school locally before they moved snd she knows the area well. I'll do all my due diligence but I think her keenness with the rent and deposit was because she was just really keen on the property because she knows the area. Thanks all

Today 12:28 IWorkAtTheCheesecakeFactory

‘Even if it’s true I wouldn’t go ahead because someone relying so much on benefits is at the whim of changing govt policy, it’s just not secure enough. I wouldn’t want to be paying a mortgage and relying on someone receiving benefits in order to do so.

How is this any different than someone in employment losing their job? confused’

I explained how it’s different. Someone on benefits and/ or maintenance is at the mercy of the govt, policy changes, disability reassessments, ex partner reducing or stopping maintenance... also if things did go wrong, someone in receipt of benefits is far More restricted when it comes to private rentals so it could be more difficult to move them on.

Of course there’s a risk too with someone losing their job, but my point is that someone with a strong track record of employment is more likely to be a decent bet. Also if you do want to serve notice then someone in employment will find it much easier to find another rental so less likely to cause difficulty about going

i am in a private rental and rely entirely on benefits. i get Housing Benefit, ESA and PIP. my HB doesn’t cover the whole of my rent, and my rent is fairly low. the Local Housing Allowance is a bad joke. i make up the shortfall from money that is supposed to keep me clothed, fed and warm.

it’s true that if benefit cuts were to happen i could be in financial difficulty. what’s the alternative though - if nobody rents to tenants on benefits that’s a lot of homeless people and a lot of empty properties.

paperwork for references

Surely you will be going to her references yourself rather than relying on ones she brings with her?

Exwife you’re actually a safer bet for a landlord than someone who will be relying on their salary to pay rent. Benefit cuts are normally notified well in advance. Whereas as someone with a wage or salary could have as little as a Weeks notice that their job is being made redundant. Others only get a month or two. If lucky.

Or me- self employed. I could break my leg tomorrow and have no work for months!

Make sure your LL insurance for the buidling and also your mortgage provider have given you permission to let to a family and also to someone whose income is solely from benefits.

You may need to change insurers and pay a greater premium. If you have a mortgage with permission to rent out the property check it as sometimes there is a list of permitted types of tenants