DSS Tenants

With so many properties available to rent these days, it’s becoming increasingly difficult for landlords to rent out property, so landlords are having to become flexible to who they rent their property out to.

A lot of landlords, especially when looking for tenancy through an agent, get offered to house a DSS tenant. There’s a lot of controversy when
it
comes to
DSS tenantscontroversy when it comes to DSS tenants; a lot of landlords just simply refuse to house them. In my opinion, a few bad apples have given all DSS tenants a bad reputation. However, renting to a DSS tenant does have its drawbacks.

What is a DSS tenant?
DSS stands for Department of Social Security. It’s basically people that are receiving benefits from the council for either being unemployed, single parents etc. Essentially, the local council will give DSS tenants a monthly allowance for accommodation. DSS tenants are NOT private tenants.

The DSS set-up process:
A DSS tenant will usually have a slightly different process to that of a private rental. The viewing process is as normal, if the DSS tenant likes the property and wants to take the property then a Pre Tenancy Determination form needs to be filled in with the agents details or landlord details (as applicable). The tenant completes their details into the form and then presents this to their housing officer. The council will then determine the house value and then access the situation of the person requiring the rent and make a rental offer. Once this has been received and accepted on both sides then the usual tenancy agreement is drawn up and the contract with the council who will then arrange the payment set-up.

Why landlords don’t want DSS tenants:
There are a lot of reasons why landlords refuse to house DSS tenants, but here are a few of the most common reasons why:

- Some local authorities have a claw-back clause, which the landlord must agree to if the landlord accepts housing-benefit tenants. This basically enables the local authority to claim back from landlord if any over-payments that may have been made to the tenant. i.e. if the authorities discover that the tenant has for example, been falsely/under declaring income or has taken black economy work etc. It will be the landlord’s responsibility to repay money the tenant may have falsely claimed.

- DSS tenants are entitled to a certain amount of allowance per month, which is dependent on individual circumstances. Some DSS tenants rent a property that actually costs more than their monthly allowance, so then there the tenant is required to pay the shortfall. So basically, the landlord could be looking to claim rent from two different sources per month, the council and the tenant. It can get a little confusing some times.

- DSS tenants generally have a bad reputation and that throws a lot of landlords off. A lot of landlords assume that because DSS tenants claim benefits, they must be doing something wrong. A lot of the problem is physiological based.

- The landlord is not getting the rent paid by the tenant, the housing benefit are paying (unless there is a shortfall- then both parties are paying). In a lot of situations, it’s not even the DSS tenant that is causing the problems; it is in fact the council. It’s not unheard of for the money transfer to the landlord to go without teething problems to start with. Dealing with the local authorities can be rather tedious to say the least.

- Payments from the council are made in 4-week cycles. A lot of landlords prefer payment on a pcm (per calendar month basis).

- Common problems that landlords experience from DSS tenants are late payments or complete lack payments (if they’re paying a shortfall), and mistreatment of property.

Advantages of housing DSS tenants:
- The council guarantees their tenants allowance payment. Private tenants don’t guarantee payment.

- The council gives the landlord an option of how payment is to be paid. The landlord can receive a cheque on a 4 weekly basis, or the money can go direct to the tenant’s account. If the tenant pays a shortfall, it’s often useful if the money goes direct the tenant, because then he/she can pay the entire amount in one lump sum.

- Letting agents charge a lot of money to find landlords tenants. Going direct to the council for DSS tenants is completely free.

Things to remember:
- Landlord insurance for DSS tenants is available. This can cover any late or lack of payments, plus a lot more.

- It’s often advised that the landlord receives the payment from the council direct, as opposed to the tenant receiving it.

- It’s entirely up to the landlord who stays in his/her property. Often, a lot of letting agents will only offer DSS tenants; landlords shouldn’t feel pressured by the letting agent. A landlord has the right to stipulate that they only want private tenants.

- If a letting agent finds a DSS tenant, the landlord is entitled to meet the tenant before agreement to providing tenancy. It’s often a good idea to meet the tenant, so the landlord can make some decision based on instincts.

- The landlord should always find out how much allowance the DSS is entitled to, so he/she is fully aware if the tenant has to make up a shortfall.

- Letting agents work on a commission based salary, so they want to arrange as many tenancies as possible, often disregarding the quality of the tenant.

- Landlords have the option of going full-management with a letting agent. Full-management involves the letting agent handling everything- there is no need for the landlord to make any contact with the tenant. This can be costly, but the letting agent will collect payments and chase up any problems. If the tenant has any problems, they will contact the agent directly, and then the agent will contact the landlord.

- It’s always better to have an occupied property than an empty property, so being extremely picky isn’t always the best option.

My personal experience and opinion:
I’ve personally housed DSS tenants, and still am housing one; i’ve had one nightmare and one success story (my current DSS tenant).

The reason I was open to housing DSS tenants is because as a landlord, I’m more likely to occupy a house with a DSS tenant than a private tenant. The housing list for DSS tenants is extremely high so there is always demand by DSS tenants. As mentioned, in my ‘things to remember’ list; it’s always better to have an occupied property than unoccupied.

I think most of the problem is psychological-based. Landlords hear a lot of problems from other people, and make snap decisions. I insist on meeting any potential tenants, so I can make a decision based on instinct. Based on my letting agents opinion and my personal instinct, I accept the most suitable tenants.

Letting agents have an extremely bad reputation, and I must admit, finding a good one is like finding gold dust. Fortunately, I have a good relationship with my letting agent, so he doesn’t mess me around. Try building a relationship with a letting agent, so you get the most accurate of details about your potential tenants. Often the agent’s opinion can be extremely useful. But remember, they work on commission, so there are a lot of rogue traders out there.

I’m not promoting DSS tenants, and I’m definitely not saying that DSS tenants are perfect, but I’m saying DSS tenants are essentially no different than private tenantsDSS tenants are essentially no different than private tenants, besides from the payment set-up. There seems to be an awful myth that implies that private tenant can do no-wrong. At the end of the day, you can get bad private tenants and bad DSS tenants just as easily as you can get good.

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phillippa j leach wrote, on Jun 7th, 2008

	yery interesting reading and as im a dss tenant renting in bilston frm dbp management properties i can say that my rent has allways been paid on time and anyone comeing onto my home will find it spotless there is difficulty in finding work and most people are claiming benefit becus of this reason it dosent make them bad people i have o find a short fall of 125 pound a wk and thats just to much so i am currently looking for a cheaper property we all need to have a roof over our heads so to all the landlords out there there are some good tenants
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NicolaTrim wrote, on Aug 25th, 2008

	I am a DSS tenant - what a label. I have been ill for half my life and so cannot work. I have no choice but to claim a local housing allowance as it now is. But I am now trying to find a new property. This is because one of the tenants at the house I now share is leaving as they can’t afford it - and they are working. I cannot live safely alone and so wish to share with my close friend who works. Because of that, the council will not house us together. But trying to find a private rental in the area I need to live is impossible. ” properties have come up but as soon as I mention housing benefit, the agents tone changes and I get excuses from “blanket policy no dss” or “landlords insurance is invalid for DSS tenants”. I hate the fact that because I am ill I am denied a basic right to live where I would like to. They judge me on scroungers and criminals who choose to live off the state as many do. I am ill and have no choice - no employer would pay me a regular income because I am ill. I have endured this treatment all my adult life - being housed with those who are violent or addicts or worse. I was given no choice and am lucky to be alive as no one cared - I was a number. I won’t except that anymore. I am taking legal steps to change agents policy. They will have to, by law, change that “blanket policy” in the case of somene disabled. I will also be taking it to the European court of human rights as I am intelligent enought o read that and understand it. I should not be discriminated against because of who I am. I just want a quiet house where I can pay my rent and live as best I can. Agents and landlords should not make snap judgements - wake up as there are people like me out there who need housing and you turn us away.
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NicolaTrim wrote, on Aug 25th, 2008

	Where can you find decent landlords who will rent to someone on housing allowance and not think that they are losers and troublemakers? They are not willing to look at YOU as a person, just the words housing benefit. And that apparently means single mums, smokers, pit bulls, 50 screaming kids and more convictions than Fagin. Thats not me - I am ill and have no choice and hate the attitude. Can anyone tell me the name of a decent landlord?
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