UK Landlord Forum / Life

Hi, my potential tenants say they are requesting deposit and rent in advance from the local authority. Is this standard practice for some tenants? Perhaps this is an early sign they won't be able to keep up with the monthly payments? Also they are asking for my contact details which I assume the local authority will need. I will check with the local authority about this service but wondered if other landlords could provide any advice around this area, things to be wary off, pitfalls etc. thanks very much for any advice offered.

It's not standard practice as the council usually pays in arrears, if you're getting it in advance I'd suggest you're doing better than most.  Pitfalls of benefit Tenants?  I can think of a few, don't touch them myself.

Councils will not pay in advance. If you manage to achieve this, please let the forum know as there could be other Landlords who would value knowing what tricks were use to encourage this change of heart / policy. It might be applicable to other Councils. I suspect, though, that your Tenants will probably know the situation very well and could possibly be playing you. Tread carefully.

They can ask all they like,but I doubt if they will get it.I have only twice had tenants on benefits.This was not by choice,they had jobs when they moved in.The aggravations are not worth it,they have no sense of responsibility,and can cause problems to others nearby who have to get up to go to work.I also found the council refused to pay the previous rents (which were very fair) and the promised top-ups from the tenants involved too much hassle.

Quote from: Riptide on December 08, 2017, 12:36:54 AM
It's not standard practice as the council usually pays in arrears, if you're getting it in advance I'd suggest you're doing better than most.  Pitfalls of benefit Tenants?  I can think of a few, don't touch them myself.

Thanks Riptide, I'm not getting a good feeling about this. I clearly advertised the property as no DSS, although they say they both have jobs of course, but not enough for the deposit and rent in advance. Haven't gone through referencing yet as was waiting for feedback re. local authority advance. As this is a first rental for myself I really want to avoid benefit tenants for sure.

Quote from: Hippogriff on December 08, 2017, 09:18:04 AM
Councils will not pay in advance. If you manage to achieve this, please let the forum know as there could be other Landlords who would value knowing what tricks were use to encourage this change of heart / policy. It might be applicable to other Councils. I suspect, though, that your Tenants will probably know the situation very well and could possibly be playing you. Tread carefully.

Thanks Hippogriff, that's important to know about Councils not paying in advance. I'm not looking to break new ground here, just trying to rent out my property as a new landlord and certainly want to avoid DSS or potential problem tenants as far as possible. I think you could well be right in that they are probably playing me. I'm not in the business of finding out. I appreciate this is a crap time of year to look for tenants, but I need to bide my time and find the right ones. Thanks again.

Quote from: heavykarma on December 08, 2017, 10:43:12 AM
They can ask all they like,but I doubt if they will get it.I have only twice had tenants on benefits.This was not by choice,they had jobs when they moved in.The aggravations are not worth it,they have no sense of responsibility,and can cause problems to others nearby who have to get up to go to work.I also found the council refused to pay the previous rents (which were very fair) and the promised top-ups from the tenants involved too much hassle.

Thanks Heavykarma, I'm not getting a good feeling about this based on your reply and the others. I think they maybe after a sucker landlord and I'm not in a position to give them the benefit of the doubt, it is far too risky for me. I think the answer I'm looking for is 'Next', cheers again.

Quote from: richb on December 08, 2017, 08:33:33 PM
I appreciate this is a crap time of year to look for tenants, but I need to bide my time and find the right ones. Thanks again.

Good answer!  As costly as voids are there is nothing more expensive than crap tenants.  Be patient.  If you're a new landlord, read about how to handle a deposit correctly, then read another article, then read them both again until you know exactly what must be done, very costly otherwise.

Quote from: richb on December 08, 2017, 08:33:33 PMI appreciate this is a crap time of year to look for tenants, but I need to bide my time and find the right ones. Thanks again.

Lots of people break-up over the Christmas period and require accommodation in the new year... often they don't even haggle.

As for your prospective Tenants... letting them pass you by seems like the least risky decision you could make here. What you have here is obviously people who cannot afford the rent without assistance - that, alone, makes you not want to do it, right? What I have found is that when people don't pay for something themselves, they take less care of it. And when they don't pay for something themselves, they don't seem to care if / how it's paid at all.

If you go with people receiving assistance from the Council it can be good... they're very unlikely to move on, usually - they stay in one place as mobility is reduced. But, if the Council detects any change in their circumstances be prepared for them to stop the payments immediately while things are sorted out. Be prepared for them to pay in arrears (always). And be prepared - if it goes really wrong - for them to not help you in any sense of the word - in fact, their advice to even the worst of Tenants will be advice that ends up screwing you over in the most painful way possible (by that I mean emotionally... no, I don't, I mean financially, of course).

You've seen the TV programmes.

I reading this post with interest because I've got a retired, elderly chap who is interested in my property. I know he will be getting council assistance ie housing benefit and was really loathe to say no thank you. I wonder if it is any *better* to have this type of dss tenant?
Thanks all.

I would consider that type of Tenant better than the single (or is she?) mum with 2 toddlers (merely an example).

The challenge here would be smoking - does he? And tidiness - is he? And, sorry, the chance of him dying in your place.

Those were exactly my thoughts - thanks! Apparently he is pretty active and independent bachelor so one would assume would be missed if he hadn't been out and about. The location of my flat is very central not tucked away which also helps in this sense.

Quote from: Riptide on December 09, 2017, 12:48:54 AM

Quote from: richb on December 08, 2017, 08:33:33 PM
I appreciate this is a crap time of year to look for tenants, but I need to bide my time and find the right ones. Thanks again.

Good answer!  As costly as voids are there is nothing more expensive than crap tenants.  Be patient.  If you're a new landlord, read about how to handle a deposit correctly, then read another article, then read them both again until you know exactly what must be done, very costly otherwise.

Thanks! Regarding crap tenants, the plan is to learn from the experience of others. I know the best lessons learnt are always the ones you learn personally, but i'm really trying to avoid learning this one myself! Thanks also for the tip on the deposit, I'm using upad to easy myself into the rental process as I wanted them to handle the referencing, deposit, standing order etc. but I wanted to handle the viewings so I could meet the potential tenants myself and have the final say as to who I would like to rent my house. Maybe down the road I'll do more of the admin myself but to start with i think this is the best option for me especially as I didn't want to use a high street letting agent.

Quote from: Hippogriff on December 09, 2017, 09:43:53 AM

Quote from: richb on December 08, 2017, 08:33:33 PMI appreciate this is a crap time of year to look for tenants, but I need to bide my time and find the right ones. Thanks again.

Lots of people break-up over the Christmas period and require accommodation in the new year... often they don't even haggle.

As for your prospective Tenants... letting them pass you by seems like the least risky decision you could make here. What you have here is obviously people who cannot afford the rent without assistance - that, alone, makes you not want to do it, right? What I have found is that when people don't pay for something themselves, they take less care of it. And when they don't pay for something themselves, they don't seem to care if / how it's paid at all.

If you go with people receiving assistance from the Council it can be good... they're very unlikely to move on, usually - they stay in one place as mobility is reduced. But, if the Council detects any change in their circumstances be prepared for them to stop the payments immediately while things are sorted out. Be prepared for them to pay in arrears (always). And be prepared - if it goes really wrong - for them to not help you in any sense of the word - in fact, their advice to even the worst of Tenants will be advice that ends up screwing you over in the most painful way possible (by that I mean emotionally... no, I don't, I mean financially, of course).

You've seen the TV programmes.

Again, good advice re. new year and in relation to paying for something yourself and being engaged with the value and effort gone into making that payment. My property is newly refurbished and so I would be utterly pi**ed off if my first tenants a) wrecked the joint and b) defaulted on payments whilst doing a). Yeap I could be passing up on perfectly reliable tenants, but all in all I want to take appropriate steps to put the odds in my favour as much possible. And yes I have seen the TV programmes... cheers.