|
|
Question Title: Administration of housing benefit
| Question: 134 |
| I have received an application from a prospective tenant who seems suitable for my property. However, she is receiving housing benefit. Because, I have heard so many scare stories from other landlords who have had difficulty receiving their money and other problems, I have never considered, in the past, letting to this category of tenant. How should I proceed ?
|
| Answer: |
| You are correct to approach this application with more caution. The housing benefit payment system is notoriously unreliable and complex and many landlords now refuse to accept housing benefit tenants. Having little or no income, housing benefit can present a higher financial risk than tenants in full time employment. Firstly, you should try and reduce your risk by asking for a guarantor who will pay the rent if the tenant defaults. Secondly, you should ensure that all the paperwork has been completed and the housing benefit application has been approved before letting the tenant into occupation. Thirdly, you should avoid receiving housing benefit payments directly unless you are well-acquainted with the housing benefit system - direct payments leave you, as landlord or agent, open to a repayment claim if it is subsequently discovered that there has been an overpayment of housing benefit.
|
|
References:
|
Pages:
|
Hyperlinks:
|
|
Letting Update Journal |
Jan 2001 page 11 |
letting-update-journal.html
|
|
Letting Handbook |
Chapter 15 |
letting-handbook-and-factsheets.html
|
|
Letting Factsheet No 15 |
|
factsheet-15
|
For more information, discuss on the Forum
|
|
