Yes, we know “DSS” is an outdated term in respect to the benefits system, but it’s still a term that is heavily used by both Cardiff landlords, letting agents and tenants when discussing Housing Benefit and Universal Credit.
So why do we believe as a Cardiff landlord and letting agent its important to say “Yes” to tenants in receipt of benefits. Well for one landlords and Cardiff letting agents should not be proactively discriminating against prospective tenants in receipt of benefits and secondly, COVID-19 is having a huge impact on the economy and people are losing their jobs!
Let’s Look at the latest Unemployment Numbers
- The UK’s unemployment rate rose to 4.8% in the three months to September
- Redundancies rose to a record high of 314,000
- The number of people out of work rose by 243,000 in the three-month period, the largest increase since May 2009.
- Unemployment rate for 16 to 24-year-olds is 14.6%
- It is estimated there are about 2.5 million people on furlough
- Redundancies are at record levels with 314,00 people made redundant in the 3 months up to September 2020
- Unemployment in Wales for July to September leapt to 4.6%
- Wales saw the largest quarterly rise in the jobless rate out of any of the UK’s nations or regions.
- Wales has also seen the largest drop in the rate of people in employment – down 2.5 percentage points from 74.6% to 72.1%
COVID-19 is creating a worry trend in regards to unemployment across the UK, therefore now more than ever we believe it’s important to understand the Universal Credit system as chances are your tenants may need to rely on it over the coming months
We have been renting to tenants in receipt of some kind of benefit for the last 12 years as a private landlord and Cardiff letting agent whether it be as a vanilla buy to let or our preferred option of Houses of Multiple Occupancy (HMO).
The Positives of Renting to Tenants in Receipt of Benefits
Over these 12 years and countless tenancies we have gained extensive knowledge of the Housing Benefit and of late the Universal Credit systems. We have read numerous books and government circulars on the subject and studied case law to ensure we understand both systems, their similarities, and differences.
Due to the knowledge we have gained over the last 12 years we have found renting to tenants in receipt of Housing Benefit and the Housing Element of Universal credit has many FINANCIAL BENEFITS for LANDLORDS including:
- Your rent is GUARANTEED by the UK Government
- Tenants on benefits do not get furloughed so do not ask for a rent reduction
- Tenants on benefit have seen their income increase during the COVID-10 pandemic
- Can often receive higher monthly rent than renting to working tenants
How Can We Help?
We can provide the following for Cardiff landlords:
- Ensure Cardiff landlords are paid the Housing Element of UC direct from day one of a new tenancy
- If there are rent arrears with an existing tenancy quickly ensure rent is paid direct to landlord and start to recover arrears direct from existing tenants Universal Credit
- Carry out a rent review to ascertain if there in an option for an actual rent increase
- For HMOs the potential rent increase could be almost £50/week per tenant
These are just some of the things we can do for Cardiff landlord that employ our fully managed property services. If you would like to receive a no obligation chat with one of our team, please complete the contact form below