RENTING TO DSS BENEFITS TENANTS

The Department of social security (DSS) provides some low-income renters with housing benefit. If a person is on a low income, and is renting a property or looking to rent a property then they could be eligible for housing benefit. Housing benefit is sometimes called rent rebate or rent allowance. The maximum housing benefit a tenant can get is the same as the eligible rent (a figure calculated by the council from a variety of factors), and this may not cover the full rent.

Many landlords choose to rent their buy to let properties to DSS tenants without any hitches, and generate a rental income in the usual way. However, just like in other sectors of the market there are good and bad tenants. Whilst DSS tenants have a stigma in some areas of the country, there is no reason why (if adequately assessed), a DSS tenant or tenants should be precluded.

When it comes to renting your property to DSS tenants, there are pitfalls that you should avoid. 

Some local authorities operate under a ‘claw-back’ clause that you have to agree to if accepting tenants on housing benefit. If the Local Authority pays housing benefit directly to you and then finds that the tenant has been over-claiming or has been over-paid in some way, they may try and recover the money from you. It is essential to check with your local authority before considering DSS tenants. Furthermore, some local authorities will take a considerable amount of time to process Housing Benefit, which could leave you temporarily out of pocket when it comes to mortgage repayments.