Housing Benefit, Bonds and renting out a room?
I am looking into renting out my spare room. I have had enquiries from people asking if I accept DSS. I take it what they have is Job Seekers allowance and Housing Benefit.
Personally I understand that these are hard times and people are losing their jobs, so I don’t have a problem with people who are currently unemployed…but…I am concerned about how I would received this Housing Benefit. Is it paid directly to me or to the claimant? Is renting a room to someone without an income advisable?
Advise appreciated!
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April 30th, 2010 at 11:05 pm
They get the option to have it paid direct to you or to themselves. Bear in mind it is paid four weekly, and not monthly.
May 1st, 2010 at 10:57 am
A tenant on housing benefit can have the Benefit paid directly to the landlord. it is paid monthly into your bank account. However, the tenant can stop this means of payment at any time by applying to the Housing benefit department. You cannot prevent this as the benefit is for the applicant, and they do not have to pay it directly to you. Now in my experience, when this happens, theystart to tell you that they have a mix up with their benefit, but it will be corrected the following month. This is a sign that very soon they are going to do a flit, and no rent will be paid. I would suggest that you ask for checkable references, ask for the first months rent in advance, and then get your rent paid weekly, not monthly. This way if they decide to leave without paying, your loss is a lot less. Get them to sign a contract which you can printout yourself and give them a copy. I hope it works out okay for you.
May 3rd, 2010 at 2:21 pm
There no longer is Housing Beneift. The benefit is now called a Local Housing Allowance and it is paid direct to the claimant not to the landlord.
I think for a room there is a limit of £50 per week. You could check out this site for your area.