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According to the Guardian today
"With many landlords unwilling to rent directly to those on benefits, some charities have set up their own lettings schemes through which they lease properties and let them to their clients. This takes away the risk to landlords and ensures homeless people ready to move into their own home are able to do so"
The most effective and affordable (free) way to help these people would be for the local authorities to give the good tenants a good lifestyle reference on LRS. If they all committed to doing this, the fact that the people on their lists did not have a reference would tell landlords all we need to know. The cost of setting up letting schemes is enormous and they will still fail if they put tenants into our properties who cause problems in the community and/or damage our property. It is NOT only about rent we can get Credit References for that. I know many landlords who have been involved in local authority schemes and some of them have lived to regret it.
While they continue to hide behind the fact that they dare not prevent bad tenants finding a home, they will leave good tenants stuck in limbo. Time to get the priorities right and to take care of decent people while letting the others take care of themselves.
GIVE THEM A GOOD LIFESTYLE REFERENCE AND LET THEM MOVE ON!
There is a housing shortage because of the eviction laws which prevents LL getting rid of tenants who don't pay their rent.
Consequently LL choose NOT to rent to HB tenants.
It is obvious that if a LL can boot a tenant out quickly for non-rent payment then they will risk taking the tenant on.
Councils should stop obsessing with coming up with all manner of stupid schemes and just lobby Govt for immediate eviction in cases of non-rent payment.
ASB tenants tend NOT to pay their rent so they would suffer under any quick eviction process.
Personally I'd rather keep my property empty if I cannot source a RGI qualifiable tenant.
Which I have done on many occasions!
I can suffer losses of 3 months interest; but not 9 months of rent losses for the eviction process followed by extensive refurb for the damage and thefts wrongun tenants cause.
There still remains a problem wrongun tenants have to be housed by councils; they have little choice than to mug a PRS LL to take the dross.
Only PRS LL protecting themselves from malicious councils can hope to beat them
LRS does a pretty good job of doing this.
All we need now is all the dopey LL that aren't LRS memebers to join up!!
Paul you prove the point that tenants on benefits need a good reference on LRS more than any other tenant group. It is a myth that they are all "wronguns" I have some great tenants on benefits and they pay their rent, take care of my properties and have lived in them for years. A good LHA tenant is a long term good tenants and local authorities would do themselves and these people a great service by helping them to build a good tenant profile and reference on LRS.
Not aware of any myth that they are ALL wronguns but with over 30+ LHA tenants on our books they do take up most of our time and vacate with the least maintained properties compared to working tenants.
These Charities and Councils are trying to do the best; unfortunately the solution is clear and worked with us with some Mansfield properties we have.
Very simple the Council (or charity) becomes the Guarantor.
I have no issue renting a property where the country underwrites my risk with their own liability be that Guarantor or Insurance Guarantor; their choice. Will even go as far as to convince a landlord a deposit is not needed.
Yep! I'd take on a LHA tenant without any advance rent; deposit, providing the council underwrote all rent and damages.
I'm sure it would actually be far more cost effective than TA costs.
As Mary stated MOST LHA tenants are good; they just need some good references and the council to underwrite them, LRS would seem ideal for that to persuade other LL to take them on!!
After all 150000 tenants were evicted for non-rent payment last year.
They won't have all been HB tenants!!
Councils would save far more money in housing tenants if they underwrote the costs of their HB tenants defaulting on their tenancy agreements.
Spread across the whole of the country the actual costs that councils would have to pay out would be minimal.
The advantage for councils to adopt such a policy is that they would encourage PRS LL to rent to HB tenants that councils are desperate to house; but can't because LL refuse to rent to them for all the reasons previously stated!!
Some nice ideas, Paul, but whatever a council guarantees it has to have reserves to cover and it would be unaffordable in that sense.
Referencing is the key issue. Prior to offering a tenancy, a landlord has to know a tenant's history. Registered Social Landlords are aa aware of this as much as we are. However, they are so bound up in red tape concerning data protection and human rights that the facilities of LRS would give them great concern.
They need to be educated and shown the great value in LRS because, if we could get the RSLs on board, they would be better off but, my goodness, private landlords would also be better protected. I am happy to spread the word in my area of Warrington, which is a pilot for universal credit. Now this IS scaring the local RSLs and making the time good for them to consider putting their tenants into the LRS system.
Yep! I appreciate what I stated has got to be considered somewhat idealistic!!
But I wonder if any council has ever carried out a cost benefit analysis of paying for defaulting HB tenants compared to the costs of TA for those HB tenants that LL could but refuse to let to!!
If I was a betting man I would lay good odds that councils pay substantially more for TA costs than any underwriting of actual losses caused to LL by HB tenants!!??
Such underwriting I reckon would have prevented TA costs cos LL would have taken them on with such council guarantees.
How could we ever know!!?
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