Yes managing properties with private or DSS tenants
can often be a time consuming and complicated task that
needs ongoing management, especially in today’s
environment. Between working hard to ensure that properties
are let and dealing with tenant demands, rent arrears
problems and housing legislation requirements, it can
be too easy to lose focus and be a push over landlord.
Don’t get me wrong the majority of tenants are
perfectly fine and hassle free; however at one point
everyone will have a problem of some misdemeanour.
Most property owners may feel sure that you won't ever
experience a problem tenant, not even a full background
and tenant reference check can omit every bad risk.
The longer you continue managing rental property, the
more certain it becomes that you will one day have to
deal with a problem tenant.
DSS
tenants are a hot topic, I’m sure they always
will be. For myself and a few of my colleagues we have
had no problems at all with DSS tenants in our properties….we
must be the lucky ones. At Legal 4 Landlords we have
at least 20 new cases a week with regards to some sort
of DSS tenant and the issues they have. Are they really
such a high risk tenant? You have to ask yourself why
they are on housing benefits in the first place. Did
you also know that DSS tenants are split into two types?
A
tenant receiving financial aid from the council is either
on Housing Benefits (HB) or Local Housing Allowance
(LHA). It is imperative that landlords know the difference
between the two!
LHA
was introduced in April, 2007. It is a new way of calculating
Housing Benefit (HB) and is based on the area the customer
lives, number of occupiers in the property and household
size. LHA is a much fairer way of calculating HB, as
it ensures that tenants in similar circumstances in
the same area receive the same amount of financial support
for their housing costs. If you are one of those rare
landlords who have customers receiving financial aid
before April 2007, did you know the council can actually
pay the rent directly into your account? However the
new LHA basically pays the customer directly, which
helps the customer to manage their personal funds…..big
problem for some landlords, not all though.
If
you manage your own properties, try and meet your tenants
this goes for letting agents also before selecting them.
I always prefer face to face meetings when making these
choices. If this is not viable for what ever reason,
you should investigate polices such as rental guarantees
with legal expenses for that added peace of mind or
the no deposit guarantee.
The
best advice I can give is to act promptly and resolve
any issue you have as soon as possible, the longer it
goes on the more troublesome it will become.
For
free legal advice call 0800 840 7133 anytime…
Sim
Sekhon, Senior Partner
Legal
4 Landlords are a forward thinking firm of solicitors
who specialise in problem tenants and have an outstanding
reputation for evicting tenants within efficient timescales
and at a minimum cost.
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