16th
Jun 2014
A council is trying to encourage landlords who are against accommodating Local Housing Allowance (LHA) tenants within their area, by guaranteeing bonds rather than cash deposits as well as assessments on those tenants they wish to place into the private rented sector.
South Northamptonshire Council's scheme is hoping to allay landlords' fears by stating, that the bond would be in place so that they could claim for reimbursement if those tenants damage the property or fall into rent arrears.
Full credit checks will not be undertaken the by the council themselves, however any of their "clients" that they wish to place under the scheme would have to undergo expenditure assessments, as well as having their tenancy history checked. Any found "wanting" would be automatically excluded from the system.
The Council is saying that their accommodation officer and benefits team will be carrying out the assessments and are hoping that these guarantees will help landlords grow in confidence to house their "clients". A further incentive is that landlords would not have to incur the usual tenancy set up costs.
The local authority would also complete a property safety inspection and if required complete a full inventory before the tenancy starts.
Councillor Dermot Bambridge, the council's portfolio holder for economic development, regeneration and housing, said: “As part of our work to improve our housing services for the district we are pleased to introduce this new scheme which will make finding suitable accommodation achievable for more people.
“Part of our approach is to make sure we have face to face meetings with all relevant people with a housing need so that we have an understanding of the whole picture.
“So not only will the process be more efficient for people looking for a new home but also we will be able to give landlords greater confidence in the tenants we find for them.”
PIMS Related Content
Forgive me I am a cynic - During the pre let phase councils welcome Landlords with open arms but as soon as the Tenants are in thereafter they have little interest in helping and often encourgae the Tenants to remain until they have a Bailif Date .
If your property is located in social demograhic area that appeals to LHA this is often determined by affordibility then that will not change; it is the market you're in!
For CONSIDERATION WHEN VETTING
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Check if your Tenant is Bankrupt or subject to Debt Relief Order
click here
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- Reducing Rent Voids
- The Classic Deception
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Vetting Benefits, DSS. LHA Tenants
Many Landlords make a conscious decision to let to people on Housing benefits. Whilst the Local Housing Allowance can be attractive the fact remains the changes in the way benefits are calculate from April 2011, are negative for landlords. Further more the introduction of Universal Credit in Oct 2013 will change the way Tenants eligibility for Benefits including LHA allowance is calculated and paid.
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Entitlement rules changed 1st April 2013. A tenant will only be paid per a
bedroom based on the LHA allowance not how many rooms the property has - see
Eligibility for Housing Benefits
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With recipients of housing benefits (LHA) there are many known risks. Landlords should always consider asking for a
guarantor, this is because where a
bad debt exists it is often impossible to recover monies from the tenants. (example low income person owes you £1400 (rent / damage) and you are awarded, by the courts, repayment of £5 a month. How many years will it take to recover the debt and interest) see
Rent Arrears Guarantors
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