Anyone have a definitive guide for UC tenants?

by Readers Question

9:40 AM, 14th October 2019
About 2 months ago

Anyone have a definitive guide for UC tenants?

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Anyone have a definitive guide for UC tenants?

Is anyone willing to post a copy of a checklist they use themselves, of questions or things that any Landlord needs to check BEFORE considering a Universal Credit tenant please?

Any hints or tips in trying to max out any money up front via the Council for possibly taking someone from their ‘Emergency List’?

The DWP need a copy of the tenancy agreement for a claim to progress, yet you can’t get a tenant to sign one as you don’t know they can afford the rent until the DWP decide what they are paying!

Any advice and experience will be gratefully received.

Reluctant Landlord



Comments

Neil Patterson

10:44 AM, 14th October 2019
About 2 months ago

Mick Roberts

14:39 PM, 14th October 2019
About 2 months ago

First of all in 2019, I'd say Don't. It is horrendous. And that's for us seasoned professionals. It's not the tenants fault, it's the obstacles put up by Govt & DWP & UC.
If you really wish to, then the homeless departments generally only pay money up front etc. when it's either too late for your tenant-Imminent eviction-Or when u taking one of their homeless tenants. Now not always, but often you are taking someone who has been evicted from their house for some misdemeanour. This could be lived with before UC as if you still got paid, you could still pay your mortgage & live with the hassle. But the Govt now wish us to have the hassle & ALSO NOT GET PAID!!!!
The rates are here for your area's. You got to convert it to monthly for UC.
https://lha-direct.voa.gov.uk/Search.aspx

CARIDON LANDLORD SOLUTIONS

21:03 PM, 15th October 2019
About 2 months ago

Dear Reluctant Landlord,
I will be posting a Universal Survival Guide for readers within the next few days which i hope will be useful.

landlord247

16:38 PM, 25th November 2019
About 2 weeks ago

The ONLY way you should ever consider a UC tenant is with a VERY STRONG guarantor.

As a result of the new deposit cap it is very rare for us to accept any UC tenants, if possible we find a working professional.

Previously we could take £5 short of 2 months rent as deposit AND a guarantor. This meant IF (or should I say WHEN) the council decides that the tenants ‘circumstances have changed’ and stop paying (something they never seem to tell the Landlord about until the tenant is well in arrears). We can speak with the tenant and make sure they understand that they need to get the council to pay up to date and we then also call the guarantor and also serve section 21 notice. That would usually lead to the tenant getting things resolved with the council and if they don’t the guarantor should pay the rent but in the event that they don’t we have the 2 months covered by the bigger deposit.

But once section 21 is abolished combined with the cap on deposits, we now only even consider UC tenants in exceptional circumstances AND with a high quality guarantor.

It really is not the tenants, I have had many really lovely long term Housing Benefits tenants in the past, but at some point where there is not a bigger deposit and guarantor, there has always been some issue where the council has stopped paying and of course the council will not talk with us about it so as a Landlord you are left in the dark. The tenant has no way to pay and you are left to evict to get possession back and just to stick the knife in the council almost always advise the tenant to stay and force you to go through the entire process to get them out.

So it is 100% crucial you only rent to UC tenants if you have a very strong guarantor, but if at all possible avoid and aim for a different market group.

My view is the government should pass a law that councils MUST pay ALL rent due to landlords in ADVANCE regardless of if the ‘claimant/tenant’ is entitled to it or not IF the claimant was entitled to it at the start of the tenancy. Then the council should be responsible for claiming that back from the tenant if it is due. That would give landlords piece of mind that the rent will be paid. But I think I have more chance of winning the lottery than that happening.

I hope that helps and good luck.

Mick Roberts

15:50 PM, 30th November 2019
About A week ago

Reply to the comment left by landlord247 at 25/11/2019 - 16:38
U speak some great words especially:

IF (or should I say WHEN) the council decides

It really is not the tenants, I have had many really lovely long term Housing Benefits tenants in the past, but at some point

My view is the government should pass a law that councils MUST pay ALL rent due to landlords in ADVANCE regardless of if the ‘claimant/tenant’ is entitled to it or not IF the claimant was entitled to it at the start of the tenancy. Then the council should be responsible for claiming that back from the tenant if it is due. That would give landlords piece of mind that the rent will be paid. But I think I have more chance of winning the lottery than that happening.


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