Landlord Looking For Dss Tenants

Landlord Looking For Dss Tenants

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For a landlord with DSS tenants, getting insurance can be a tricky proposition. One of the largest obstacles is ascertaining just what DSS is. As there are no concrete guidelines, it falls to each individual insurance company to decide what they class as DSS tenants, if they even deign to insure them at all. Generally speaking, most insurance companies class DSS tenants as people claiming some form of housing benefits. Currently, there are two main branches of housing benefits; Local Housing Allowance (LHA) and Housing Benefit (HB). LHA is slowly phasing out the old HB system, with the intent of replacing it entirely. The main differences between the two however are minimal, suffice to say that LHA payments are based on area, amount of tenants in the property and the size of the household. HB does not take these things into account and can lead to situations where two neighbours, living in identical properties could be receiving drastically different amounts.

Though insurance companies can make life difficult for landlords with DSS tenants, there are some benefits to taking them on. Firstly, as DSS tenants are viewed as undesirable, there is a greater demand for property than there is supply, enabling landlords to charge higher rents then they would with a professional tenant. The second reason is that DSS tenants have a guaranteed source of income, unlike professional tenants who could potentially lose their job at any time. Thirdly, most professional tenants are introduced to their landlords through a letting agent, who will charge a percentage of the yearly rent as a "finder"s fee". With DSS tenants this is not the case, anyone can approach the social housing office and obtain a list of DSS tenants requiring accommodation at absolutely no charge!.

Changes to the Housing Benefit system have however removed one of the main draws of DSS tenants, the security of money. Previously, it was the landlord who would receive the housing benefit making the rent from DSS tenants extremely secure. However, this has now changed with tenants claiming the newer LHA getting the money directly and tenants on the older HB having the option of getting the money directly. This change removes one of the biggest draws of DSS tenants to landlords, while the extra hassle from insurance companies and the suchlike may have been worth it for guaranteed rent, this loss of security makes it seem like a much less attractive proposition.

Landlords looking for insurance for DSS tenants can expect to face higher rates, increased excesses and even withheld cover, however, with a bit of shopping around and the right amount of negotiation, these can be minimised or even mitigated entirely in some cases! For example, it is possible (in some situations) to claim "top-up" housing benefits while working part time or even full time if your income is low enough. Some insurance companies will however, not view these as DSS tenants, despite the fact that they"re claiming housing benefits! Clearly it"s important to discuss your tenant"s situation with your insurance company to make sure you"re getting the right deal.

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