We all know that it is illegal to discriminate against tenants who claim benefits (I am aware that it has been a topic of discontentment in a previous post by a tenant).
However I would like to ask other landlords what their views are on renting to those on disability benefits.
My position is that I have two sets of tenants on PIP disability benefits (one was previously working, but hasn’t done so for a few years now).
They are good tenants (a few blips with one) but I am finding myself falling further and further behind on what I could achieve in terms of market rent.
I am currently advertising a property and despite it being around £240 per month above the LHR I am finding that I am getting quite a few applicants who are claiming that it would be affordable to them with both their UC and PIP payments. It would seem that when wanting a property they claim it is completely affordable for them, but then once in, they use their limited income as a reason why they would struggle with any rent rises.
Add to that, the fact that the government have publicised that they will clamp down on the number of people claiming PIP, so I’m assuming it could be lost on reassessment, and the fact that PIP is intended be used for their disability not their rent. What are landlords views on this?
You have already answered in effect on our behalf. What you say is spot on. Be wary of those who CLAIM they can afford it
it’s simpler than that even because the figures should stack up on paper surely before the rental goes ahead and everyone therefore is fully aware of the situation when disputes arise …
I’ve personally seen students lose benefits they were entitled to under the last government clamp down
The current government have alleviated the benefit reduction by introducing soft rent control under new reforms
Giving the tenant the right to go to a tribunal limits and delays the rent increase in their favour
My two investments in BTL (less than 3 years) are still in their infancy. During these early stages the ongoing viability of my investments require that I achieve market rents or at least very close to it. Just like the OP the Local Housing Allowance (LHA) fall considerably short of what my properties are currently let for. Accepting PIP to cover the shortfall is asking for trouble especially with the RRB on the horizon, rents will likely need to be increased to cover the additional costs of landlord database, ombudsman scheme etc