UK Landlord Forum / Life

Hi
I have heard mixed reports on having DHSS tenants.  This will be my first ever tenant, who I believe is on full benefits as they do not work, and have two small children. 
Any advice or experience you can share please?
Thanks   

Firstly, the DHSS does not exist... and hasn't since, oh, the 90s or something like that.

Secondly, out of 5 Tenants renting 5 properties, the 1 that receives LHA is the one I always have trouble with. The others are all fine. Upstanding working people who pay their rent by standing order each month - the right amount on the right date. They are lovely Tenants. The 1 Tenant who receives LHA has to have it paid directly - because they can't be trusted with it - and they are required to pay a ~£40 top-up every month.

Each month I have to chase for this nominal top-up.

Each month I am either ignored or get some hard-to-believe excuse as to why it's not been paid. Car was broken into, email has been disconnected, mobile phone was lost or stolen... I think it has been lost and stolen!

Sometimes - but rarely - I am paid the correct amount. Sometimes I am paid slightly over. Sometimes - most often - I am paid just under.

They were almost 2 months in arrears, now they are a full month (of top-up) in arrears... the wonders of Christmas, ey? I had emailed and texted... no response. I eventually went to the hassle of writing a pigging letter to them outlining the next steps I would need to take if I did not receive any contact and that actually got a response and a payment for 1 month.

That is my experience... take from that what you will. I am not a big-time Landlord, but 1 out of 5 for me is enough empirical evidence.

Why not find some nice working people?

Hi - thanks for your reply.

As I am new to all this, I am using a letting agent, and it was them that called to mention this person wanted a look at the house.  Your reply is very helpful, you have certainly given me something to think about.

Shelly

Your other challenge being that the Letting Agent is likely only to be interested in getting any old Tenant in your property so their fees can start rolling in. Make up your own mind and don't be swayed by sob stories from other parties. Don't allow anyone to question your sanity if you decide not to proceed with a certain Tenant. Will you do the viewing yourself so you can assess for yourself?

Come April, if things don't improve, it will be Section 21 time for my Tenant in receipt of LHA.

If you are paying an Agent to find you a tenant, this is NOT acceptable.

It just isn't right.

They will charge you and them a fee, and dont care.

I am sure on this forum there is a long and funny blog on this very issue.

You could find a LHA tenant for free, very easily.

Dont let them get away with it.

Thanks for your replies.

I had good news today - the (working!) viewers I had round before Christmas have today expressed an interest in renting my property and paid a deposit!  I went to the property today to let them have a second viewing, and they seem like decent people.   Fingers crossed . . . .

http://www.propertyinvestmentproject.co.uk/blog/dss-tenants/

Thank you

No problem.

There is a good number of articles there which should give you a great knowledge base on this subject.

But as I say the main thrust, dont pay for them, LHA tenants are cheap to find yourself if thats the way you are going

Hi there

Just thought I'd Bob (no pun intended, lol) back and let you know how things went.  I now have a couple, both employed, living in my house.  They seem like decent people.  I have had one month's rent so far, which took a huge dent with LA fees.  Maybe down the line I'll know what I'm doing a bit more, and get brave and manage the property myself. . . . .especially as my tenants say they are looking to rent long term.  I also called the tax man, and after a little chat, drew up a list of my initial expenses.  I was surprised to discover I couldn't offset the cost of replacing the carpets.  They really did need replacing, and the tenants said they would move in if I replaced them.  So of course I did, hall, stairs, landing and both bedrooms.  I guess I still have lots to learn, but so far, being a landlord is going ok!     

Shelly

If you provide carpets and curtains, the you are part furnishing the place.

When you come to do your tax return, tick the furnished box, and claim 10% of your rent as wear and tear.

That way at least over time you will get some of your carpet money offset against tax.

You can do this each year.

Thanks for the update.

Great - will do, thank you.