We rent out our basement and when the tenants who had been there when we bought the house moved out, we advertised and were quite happy to have a DSS tenant. However, we would not do it again.
Our tenant is lovely, a really nice chap and kind and considerate, brilliant with dd, helpful, friendly etc. However, the Benefits Office are a nightmare to deal with. It took them nearly a year to sort out his housing benefits payments, by which time the poor guy was so broke that he needed the money to eat. He signed the form to say that they could discuss his case with us and also signed to say that the benefit should be paid direct to us. It was another 6 months before this started happening.
They will only pay HB every 28 days in arrears. Our rent is calculated per calendar month and was supposed to be paid in advance. As the elec, gas and water are all inextricably linked with our supplies, the rent we set was inclusive of bills. DSS, however, decide an amount for utilities and deduct this from Housing Benefit, so we don't get the full rent from them anyway. These are things you need to bear in mind.
The benefits office are ghastly to deal with. They treat us as if we are slum landlords out to cheat. Basically they treat us with contempt, give us as little information as they can possibly get away with and are pretty rude.
No wonder DSS tenants find it so hard to get anywhere decent to live. The whole system is disgustingly managed and the housing people are rude, ignorant mini-Hitlers.