What is the difference between housing benefit and dss

Many landlords and agents ask for a tenancy deposit. It must be protected in a scheme throughout the tenancy. You can't be asked to pay more than the equivalent of 5 weeks' rent as a deposit. You should get it back at the end of the tenancy, unless the landlord deducts money for things like damage or rent arrears. If you can't afford a large up front deposit, there are alternatives. Some landlords or agents will use deposit replacement insurance. This is sometimes called a zero deposit option.

You pay a non refundable fee at the start of the tenancy, often equivalent to just a week's rent. You have less to pay up front than you would with a normal deposit but you don't get the fee back and it could cost more if there are problems during the tenancy. Landlords and agents must get your permission to run a credit check and you can't be charged for it.

Be honest if you don't think you'll pass a credit check. You could suggest an alternative way of checking you're a suitable tenant. If you've already shown the property is affordable and that you can provide references, a guarantor or rent in advance, there may be no need for a credit check.

Find out more about renting when you have a poor credit history. They are small text files. You can read our cookie policy for more information. Some are necessary for our website to work properly, while others provide information that helps us improve your experience. Our website needs these to run. You can only turn them off using your browser settings.

We use marketing cookies to help us improve the relevancy of advertising campaigns you receive. These also send information to linked Social Media channels. Landlord insurance is a must have for any rented property. Regardless of whom they rent to, landlords are practically obliged to pay for rental property insurance.

Otherwise, they risk facing horrendous repair and renovation costs from tenants. It only takes one horrible experience to take most landlords out of business. Small time landlords are financially dependent on the income the property yields. Landlord insurance providers evaluate DSS tenants as a bigger risk than normal paying tenants.

To that account, they increase the cost of the insurance payments and premiums. Some insurance companies and banks even reject landlords with tenants on housing benefits. Mortgage lenders are not making it easy on landlords too. As we know, most small landlords become such through a buy to let mortgage. Practically all banks and lenders will evaluate a DSS tenants as increased risk. Thus, many are restricting landlords who want to get a buy-to-let mortgage.

There are special clauses that limit landlords from letting to tenants on housing benefits. However, they can set conditions about employment, guarantors, credit checks and other factors which DSS tenants find difficult to provide.

Landlords who are willing to break the mortgage agreement face financial penalties. The Mortgage Works, a subsidiary of Nationwide tried to change their policy to prohibit landlords to let to DSS tenants. Being one of the biggest BTL providers, many landlords were affected and forced into compliance. After heavy pressure from the National Landlord Association, the company amended the ban.

Yet, this can only reaffirm that many mortgage providers will be reluctant to lend to landlords who let to DSS tenants. Working with a DSS tenant often involves a lot of form filling and paperwork by landlords. It can be followed by more waiting and bureaucracy, while the rent remains accounted for. And, they can do it without any prior notice or regard for the tenancy agreement. To top the cake, many landlords report enormous backdated over-payments.

The uncertainty of rent payments, combined with the complications of the benefits system and the bad reputation that the majority of these people have unfairly been given have put them at the back of the line when it comes to choosing tenants. The truth of the matter is that a lot of DSS tenants are in need of permanent accommodation and with the housing crisis getting worse, their situation is not getting any easier.

Landlords are also often put off by the benefits system. Previously, DSS tenants were an attractive prospect for a landlord as the rent came directly from the council, meaning guaranteed payments.

The following criteria are used when deciding whether a property is or is not overlarge. One bedroom is allowed for each of the following: a married or unmarried couple a single person aged 16 or over two children under 16 of the same sex two children under 10 a child under 16 Please refer to the housing benefit office for more information about these criteria Eligible rent Housing benefit cannot be paid for that part of the rent which covers services such as water rates, fuel costs or meals.

How is housing benefit paid? How long is benefit paid for? Entitlement may continue during a temporary absence from home. What can a landlord expect of the council?

We will: pay housing benefit promptly, provided we receive all the information needed to process a claim on time make payments four-weekly while a tenant is entitled to benefit advise you if the tenant has asked for payments to you to stop only discuss a tenant's benefit entitlement with you if the tenant has given permission What does the council need from the landlord? If there are difficulties with payment of rent, your first point of contact is the tenant prompt repayment of overpaid housing benefit More advice for landlords Visit the Landlord zone website for information and tips in the landlord industry.

Quicklinks Pay your rent. View your rent statement. Request a repair. Pay service charges. Find a place to live. Resident involvement. Report anti-social behaviour.