House Let - Dilemma. Someone interested in my house...

heyyo · 09-07-2008, 23:28

Hi guys.

hope you can help.

I have recently put my house "to let" via an agent. However there has been no interest, but a few days ago.. a man knocked on my door and wanted to view the house, which i did. He was very keen and visited again a few hours later with his wife and little kid.

He was adamant that i should let the house to him without going through the agent, as it later transpired he would not pass the credit check as he was redundant from work.

He wants a 12 month agreement with 'first right of refusal on selling'.
he can pay 2 months deposit and 1 months rent.
he will be claiming using Housing benefit.
he showed me the housing benefit letter which he says is contribution based, so they wouldn't inspect the house, it would just continue.

he has given me two references...which do check out.
he also showed me his p45
He will also include his Mother as guarantor, although she is retired.

he said he will draw up the contract, as his wife works part-time in a law firm.

the main issue i have is....

what happens if i dont get the rent each month? what are my rights?

what is the best way of handling this issue, i am keen to "let it" but obviously i don't want to be taking a massive risk.

what do you think i should do?

09-07-2008, 23:34

if you make sure the housing benefit is paid directly to you then you know you will get that much every month. Did the letter tell you how much he would get? obviously I would make sure the contract is checked out before you sign

johnnyposs · 09-07-2008, 23:38

This sounds a bit dodgy to me, bringing the emotion factor(wife and kid) into it.

georgepomone · 09-07-2008, 23:41

Use the agent. You pay yes but they know the score.
George.

**Rob** · 09-07-2008, 23:43

I would seriously suggest that you need to ensure not only that the guarantor is genuine, and that the housing benefit would be paid direct to you, but also that you can obtain proper references on him. Why will he not go though the agency? It's not after all about him saving money by doing that, it's about you haveing security that you won't get the run around. If he's trying to bypass that, why?

If you don't know your rights if you don't get the rent paid to you, then even more reason for going through a proper agency who should make sure everything is correctly managed. How are you going to look after the deposit. These days that has to be held in a properly bonded trust system. Even the tenancy agreement, you need to know is genuine. If it's being drawn up by the tenant, how do you know its all correct?

09-07-2008, 23:50

well he was honest enough to say he would not pass the credit check.

I know how hard it can be to get housed I have been homeless in my life and you do not get much of a chance . You most likely would be better off going through the agent but perhaps you could say you will accept housing benefit and unemployed

heyyo · 10-07-2008, 00:34

thanks for all the responses...

In terms of the contract he will be drawing up, i would be getting that checked by someone in the legal field to make sure its ok...

is it important if i do go ahead, that the housing benefit is paid directly to me? initially i didn't mind, but i guess this will be extra security. the letter does say how much he will get and it is enough to cover the rent, would this change though on his change of address...

i'm just wondering whats the benefits of using an agent, even if he did pass the checks and then a few months down the line, he stopped paying rent...there is not much the agents could do...as they are not liable in the rent being paid, thats why i am inclined of just getting a copy of his "contract" and getting that checked and using that as my legal documents.

if there is a problem with the rent being paid down the line, how soon can i get them evicted?

danielf · 10-07-2008, 00:52

As others have said, I would stick with the agent. You can instruct the agent to be more lenient on the requirements. I would think you don't want your tenants to draw up the contracts. An agent should also know the rules if eviction were necessary.

Also, are you living in the property now? If not, where did these prospective tenants get your address?

Matthew · 10-07-2008, 00:54

Stick with the agent is what I would do.

nomadking · 10-07-2008, 00:54

I don't think you can have the Housing Benefit paid direct to you under the Welfare Reform Act.

v0id · 10-07-2008, 00:58

Isn't housing benefit paid in arrears?

**Rob** · 10-07-2008, 01:37

As wth many other aspects of general advice offered on this forum, there are few, if any experts in this field here, and unless stated otherwise, any advice offered has to be accepted with some caution. Bottom line your experts are the agents that you engaged to market and let your property.

Yes someone without a job may well be desperate, hence the unusual approach direct to you. But it's your property. You have outgoings that you must pay on it. You need the income it can bring. Is this tenant reliable, if he has no current job, and he doesnt have the housing benefit paid direct to you, how sure will you be that it won't get used for other outgoings when they start to run a bit short? I'm sorry to be sceptical here, and ta this person with a dodgy brush, but I just wouldn't take the risk when renting is dodgy enough in the first place.

**Matt D** · 10-07-2008, 02:15

I'd say go with the agent.

Sounds way too risky to do it directly...

ceedee · 10-07-2008, 02:17

I've been a tenant of various properties for over 30 years and I can assure that agencies are a complete and utter waste of time.
The Housing Benefit can be paid direct to you (it's payable fortnightly) but it's likely to be a little under the rent you're charging. (Your tenant is supposed to find the remainder out of other benefits.) Your tenant will have to instruct your local council to pay the HB to you but I've seen clauses in leases that insist this has to be done as part of the agreement.

Explain your nervousness to him, that it's important that you get paid, and judge his reaction. Get the agreement checked and give the guy a break.

nomadking · 10-07-2008, 02:43

A new housing benefit claim would come under the Welfare Reform Act 2007.

Quote:

We are continuing to makechanges to Housing Benefit that will make it easier for people to move into work, help local authorities process claims more quickly, promote greater choice and responsibility for tenants, promote financial inclusion and help the fight against benefit fraud.

Housing Benefit reforms contained in the Welfare Reform Act 2007 have seen the national roll out of Local Housing Allowance (LHA) across the private rented sector from 7 April 2008. LHA offers an easier and more transparent way of calculating entitlement to Housing Benefit. There are also provisions that will support our efforts to encourage more social sector tenants to manage their own rent payments.

The "responsibility for tenants, promote financial inclusion" bit refers to payments being made direct to the tenant, so that they are supposed to be reponsible for paying the rent.