I you own a property that you are planning on renting out; you may be considering who to rent too. It is wise to consider the type of tenant you want so you know how to market your property, what kind of furnishing is required, and how and when you will be paid. There are various markets that you can take into consideration when letting out your property, for example: professionals, students, benefits tenants etc.
Where a lot of landlords will target the professional and student markets, you will see some reluctance with some landlords and agents in letting to the benefits market. There are however a number of advantages in letting your property into the benefit market that could make it an attractive proposition for landlord and agents.
Not all people on housing benefit are unemployed
Due to the cost of living and part-time/zero hour contracts, a growing number of people need to claim housing benefit to cover part or all of their rent. By accepting clients who work and are on housing benefit, you can have the security of a person who receives a wage and the backup of having the housing benefit pad directly into your account.
Get your rent paid on time every month.
If you accept tenants who are receiving housing benefit for some or all of their rent, you are guaranteed to receive your rent payment from the government on the same date every month. This can be paid directly into your account, meaning you are not waiting for payments from your tenant or having to chase rent arrears. Remember that you may only get part of the rent paid by housing benefit into your account so make a standing order arrangement with your tenant for the same date so that all the rent hits your account on the same day.
The benefit of long term tenants.
Some tenants on benefits may choose to rent as a preference, or may not be in a situation to buy or get a mortgage. By choosing the right tenant and getting payments by housing benefit, you may be lucky enough to have a long term tenant with no plans to move. This is an ideal situation for you as a landlord, where your house is being looked after and treated with love by a long term tenant, you are receiving your rent every month on the same day from the government and your tenant and you are able to pay off your buy to let mortgage.