Common Misconception: Rent Is Guaranteed With DSS Tenants

I’ve heard a lot of people claiming that rent is guaranteed when Housing Benefit (HB) pay rent directly to the landlord on behalf of DSS tenants. It was actually the other day that someone on my blog made that statement, and it’s definitely a popular claim I’ve heard many times. For the record, the lady that made the comment was nice, and this is definitely not a personal attack on her.

From my experience, it’s usually tenants on Housing Benefit (HB) that make the claim to either a) sway landlords into thinking DSS tenants do have their perks b) don’t have enough experience with HB allowance to know any better. Either way, the assumption is completely inaccurate.

I agree, taking on DSS tenants do have their perks, however, saying that “rent is guaranteed” is total bullshit, so people really need to stop thinking/saying it is. It’s not guaranteed at all, and most landlords that have respectable experience with DSS tenants will know that. At first, I also thought that it was guaranteed rent. I don’t quite remember, but I may have even praised about that “guaranteed” shit on my blog in the past, but then I got some actual experience with DSS tenants, and my entire perspective did a u-turn.

This blog post isn’t an intended witch hunt for those receiving HB, this blog post is just a reality check.

The short fall

Firstly, DSS tenants have a shortfall to cover each month, which the tenant is expected to cover on time every month. That shortfall is NOT guaranteed. I’ve had a tenant in the past that had to pay £100 each month to cover her shortfall. It was often late, and frequently required constant chasing. She wasn’t a bad tenant, so eventually always coughed up the doe. But I know of landlords that weren’t even fortunate enough to receive the shortfall at all. The tenants just didn’t care about paying.

Yes, the majority of the rent is paid by Housing Benefit, but I don’t expect to let my house out at a 10% discount each month, otherwise I would have marketed the property with a lower monthly rate.

Don’t get me wrong, it’s definitely a perk to have the majority of rent paid by the council, but it’s definitely not entirely “guaranteed”, which is my point.

Landlords are at the mercy of the council

Secondly, and most importantly, the council have the ability to seize/alter anyone’s benefits at the snap of a finger. And there’s nothing a landlord can do about it.

One day your tenant might be entitled to £700 per month, the next day their circumstances may change and they’ll be entitled to £500 per month, consequently the tenant will have a larger shortfall to cover. This of course brings me back to my first point- there’s no gaurantee the tenant will cover that shortfall on time every month.

And then, naturally, the tenant will say, “there’s been some kind of mistake. Give me a few weeks, I will sort it out with the council”. Soon enough, weeks has passed, and nothing has changed, and your tenant has now fallen into arrears.

The council won’t move quickly to resolve anything (believe me) and they sure as hell won’t talk to the Landlord to explain what is going on, because the personal finances of the tenant has absolutely NOTHING to do with the Landlord.

I’ve even seen cases where tenants were claiming HB fraudulently and as a result their allowance was completely terminated.

So no, regardless of whatever agreement/setup you have with your DSS tenant and the Housing Benefits Department, rent is NEVER guaranteed, and you’d be a fool to think otherwise.

Right, that’s my little rant over. Love and peace all, love and peace!!

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Talk / 16 Comments left so far

SN wrote this on 2009-12-29 23:39:17 Landlord, great article. All true! SN 1

sheldon wrote this on 2009-12-30 04:30:04 TRUE! 2

Phil wrote this on 2009-12-30 10:43:40 So true....I had tenants on HB and as I wanted the house back I gave them the required 2 months notice. On the last month they didnt pay the rent and disappeared as they knew the deposit was unlikely to be returned due to the trashed state of the house. The local HB office didnt want to know and said it was down to the tenants to make the payment!! I have to say lesson learnt...... 3

Fiona wrote this on 2010-01-03 11:09:26 How true this is. I started out with a flexible attitude but now I will not rent to HB tenants unless there are exceptional circumstances like a proper disability and they look like long-term tenants. Retired people are great as their circumstances don't change. To have HB as a high percentage of any portfolio could be disastrous - I would say more risky than if they were working tenants. I was recently galled to have to pay back benefit to the council for a tenant who buggered off owing me money!

Another problem I have found is that HB tenants pay the rent and deposit up front but then say they can't pay you until the end of Month 2 as that is what the council pay them. This is nonsense (they are paid at the end of 4 weeks which should be your Month 2 rent) and I do not allow it. If they abandon the property you do not have the 1-month cushion. People have even had the audacity to say to me that they need the money for stuff as they have just moved house! When tenants have this attitude that everyone else should provide for them do you really want them in your property? They will be looking for ways to rip you off, and they will succeed, believe me. Trying to trace people who leave no forwarding address is a nightmare and even if you do find them, getting money out of people who have none, and feel no obligation to go out and earn some, is a waste of time.

The other problem with HB tenants is that they are at home all day messing up your property! Think about it. Working people spend less time there so do less damage. They don't have every other single parent round all the time/scrounging layout boyfriend/unnecessary dogs and cats/in general extra pairs of feet and fingers increasing your wear and tear.

I'm sorry to say some of these things as I know there are some genuine people on HB at certain times in their lives but I'm only speaking from personal experience. In any business you have to make a judgement and sometimes this is based upon generalisations but it's necessary to protect yourself. 4

Sam wrote this on 2010-01-04 22:53:09 The other thing which has happened to us - HB tenants moved out - told council and not us. Payments to us stopped and I could not get the rent! Luckily had the deposit - but as you know the DPS make you jump through hoops for that! 5

Someone wrote this on 2010-01-25 19:12:19 Hi for a start I'd like to give kudos to whoever set up this site, very useful info on here.

Now back to this topic, I don't think landlords should dismiss DSS clients as much instead find out their circumstances i.e. someone who is long term sick/disabled is far more likely to keep up with rent than the usual work-able person on jobseekers (or scum to some people) who have to sign on every few weeks to get their benefits.

I think the lesson that needs learning is that you as a landlord should find out as much about the could be tenant as possible regardless of whether they're working or not. Simply dismissing any DSS client is lunacy.

Now my answer to the question "is rent guaranteed on DSS?", no of course it isn't but that doesn't mean it couldn't be as stable if not more than someone whose working if the circumstances are right. 6

Sam wrote this on 2010-01-25 20:25:19 Yes that is correct. At least with the DPS when the tenant is 8 weeks in arrears then you do get it paid to you 7

kayla wrote this on 2010-02-02 01:53:53 I am on dss and the rent comes to the landlord every first of the month and they pay the total rent no under table stuff. It is guarenteed your best bet is to get a reference from a past landlord from a potential tenant. I live in Westchester ny and the system here is legit. 8

Annoyed wrote this on 2010-04-11 12:55:09 Reading the comments of some landlords, it made my blood boil.
After working all my life i have become a tenant on DSS from no fault of my own, but through ill health. Find most landlords treat people on benifit as low life, when they themselves often let out substand properties, charge the earth, then conplain when they do not get the full rent, after all DSS benifits come from the public purse, it is them who are ripping off the state, they are only in it for a fast buck, and wouldn't live themselves in some of their properties, but expect us to, stop moaning landlords, we keep you in business, If there was more council houses, we wouldn't need you!!! 9

Twattybollocks wrote this on 2010-04-12 10:04:48 Yada yada yada............. heard it all before.

TB 10

The Landlord wrote this on 2010-04-12 10:52:24 Annoyed: It's the landlord's right to charge as much/little as he wants for his property. No one is forced to rent the property.

Of course we're going to complain when the rent isn't paid in full. If you can't afford the rent, then don't rent a property at that rate.

It's like someone buying a Ferrari, and then complaining they can't pay the finance. 11

whatever! wrote this on 2010-07-01 12:08:16 I am appalled at the comment above from Annoyed. You have obviously missed the point that honest hard working landlords on here were trying to make - It is not all DSS just a few bad eggs which happen in so many different cases and they are advising others to beware!!! To then say that landlords are taking from the public is a narrow minded and bitter statement to make. You are obviously very raw about your situation and probably never expected to be on benefits yourself but without people renting out their own properties to other people there would be a lot of homeless poeple out there!!!!!! You will be surprised at how little landlords make in this current economic climate - i dropped the rent to accommodate DSS tenant and am now 2 months short on rent and she has been on holiday to Lanzarote and oh did I forget to say - a new car!!!!!!! Eviction notice will not have to be sent and I for one (single mother of 3) have learnt from my mistakes and will not touch DSS again as DSS is paid directly to the tenant for them to pass to the landlord in many respects. Landlords have no chance!! 12

Phil wrote this on 2010-07-02 06:03:27 As a landlord with a bad experience with a DSS tenant and the HB system. Im sure I read somewhere that if it is found that HB has been overpaid to a tenant and passed onto the landlord then the landlord is responsible for paying this back!! Its funny how they are quick to get involved when they are owed money and ignore the landlord when the tenant has chosen to spend the rent money on a new flat screen!! 13

Timea wrote this on 2010-07-16 11:37:41 I understand that Landlords are not to keen on taking DSS clients due to extra paperwork and sadly to bad reputation.

However not everybody is the same. I am a teacher for instance and also a single mum. Sadly my income alone would not be enough to go private and therefore I need help from the council. Now I am struggling to find a place for ourselves as the majority of agencies just simply say no to DSS or LHA clients. I have brilliant references and have regular income yet no place to go... It is really sad and dissapointing. What is the solution???Please dear Landlords consider that not all DSS clients are the same. The majority of us decent people with good reputation looking for a home to live...Regards, T. (London) 14

Fiona wrote this on 2010-07-16 20:49:14 Well, Timea, if you came to me I would take you because you are working but on a low wage, although I would insist on a guarantor, which I hope you agree is reasonable. It is ridiculous to have a blanket ban on DSS without looking at peoples' circumstances. However, it is a buyer's market and if landlords have the choice of taking non-DSS people then they normally will, because on balance they get paid more reliably. The situation is getting worse as well because landlords know that local housing allowance will decrease next year which means chasing bigger top-ups, so I hope you get somewhere sorted for yourself soon. 15

mark wrote this on 2010-07-28 23:10:43 i have a tenant and all he has to pay is £63 p/m he hasnt payed for 2 month now wont answer phone/letters we use letting agent who are garbage "all they say is well we tried to ring him and sent letters" but they didnt even have the sence to get a phone number from the guarantor,he did pay a bond which will cover what he hasnt payed for the rest of the 4 months but if he recks the house before he goes then the bond will get swollowed up doing repairs leaving nothing for missed rent
i was going to go see him or post a letter from me giving him a bit of harsh word does anyone think this is wise? any ideas im lost with what to do. 16

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