Landlord insurance for tenants on housing benefits needs a certain type of DDS insurance because of the tenant and the risk he or she faces to the landlord insurer.
When you have a tenant who needs to apply for housing benefit to pay their rent, it can be a bit more challenging for a landlord because of the time it takes to get the housing benefit approved, to the time you see your money.
It can six to eight week for a housing benefits to start, the only way around this would be to ask the tenant for two months rent upfront and this could be impossible with most people who aren't working.
If you vet properly it can save you a headache, but if you're just looking to fill the property with a body so you can start making money from it, sometimes you have no choice when it comes to choosing the perfect tenant.
The risk involved would depend on the tenant obviously if the tenant is 18 years old and a bit of a party girl, well you could be in for trouble. But maybe not, she could be very sensible, a college girl with a sense of direction in life, everyone's different.
The next scenario would be the tenant from hell, a landlord's worst nightmare, but how do you avoid this from happening? You can't, you need to use your head and your gut at the same time here. If he/she is an alcoholic and a drug user, you might be in for a shock.
It's not the first time a tenant on housing benefits apply for a let flat and as soon as they move in, they sell the stuff to their mates for a few quid. That's where landlord contents insurance comes into it, contents cover will pay you back for the gear if it gets's stolen.
You see, everyone has a different situation and a different tenant experience, you could undoubtedly write a book about it, and some people have you can take a look at Landlord Blues on Amazon if you are interested in reading it, it opens your eyes to the letting field.
No way, you shouldn't because not all housing benefits tenants are tenants from hell. Get to know them, meet them a few times and get a feel for the person. They could be looking for a job but can't find one or they simply want to educate themselves more in life and a job gets in the way.
If you use due diligence, you could find a long term DSS tenant in no time at all and be more than happy to accommodate them.
What's wrong with students, students are the bread and butter for some landlords across the country. Here's a tip, when you're letting out rooms to several students, keep one room for a special tenant and ask them to look after the property for you.
Give them your phone number and get them to phone you if anything happens you should know about. Offer them an incentive, just say, £15 to £20 a month in their pocket to keep this arrangement between you and them. It's worth it to you, I'm sure of it!
Always be in front when you are dealing with all tenants, not just housing benefits tenant. And remember to treat people the same whether their working or not.
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