Dispelling Common Myths About DSS Tenants

In this blog, we will try to debunk some of the most prevalent DSS tenant myths, offer you some facts, and prompt a more balanced view towards leasing to housing benefits-receiving tenants. If you are a landlord, reading this could possibly alter your opinion regarding DSS tenants!

Myth 1

DSS Tenants Are Unreliable Renters

One of the most prevalent DSS tenant myths is that DSS tenants who are in receipt of housing benefits are bad payers. Most landlords believe that such tenants will never be able to make their payments on time or pay their rent at all.

Reality

The reality is that DSS tenants receive specially designed money to assist them in paying rent. Most tenants have their housing benefit or Universal Credit payments paid directly to their landlords, minimising the chance of missed rent.

In addition, just like any other tenant, DSS tenants are individuals with varying financial situations; some might be more careful with money than others, but this does not apply specifically to benefit recipients.

Adequate vetting, including the asking of references and credit checks, can enable landlords to locate good DSS tenants in the same way they would employ tenants.

Myth 2

DSS Tenants Cause More Damage to Property

Another false assumption is that DSS tenants are irresponsible when it comes to rental property, causing more damage, repairs, and maintenance.

Reality

No evidence exists that DSS tenants are more inclined to destroy property than non-receiving tenants. The source of a tenant’s income does not indicate how much they will respect a property. Some working tenants destroy their rentals, while others receiving DSS treat their properties with utmost care and respect.

To minimise risks, landlords need to do thorough background checks, ask for deposits, and arrange for frequent property inspections; just like with any other tenant. A proper tenancy agreement defining maintenance obligations can also serve to ensure mutual expectations are met.

Myth 3

Landlords Cannot Get Rent Guarantee Insurance for DSS Tenants

Many landlords avoid renting to DSS tenants because they believe they cannot obtain rent guarantee insurance, leaving them vulnerable if the tenant fails to pay rent.

Reality

Although it is a fact that some insurance companies have limitations on insuring DSS tenants, there are still numerous alternatives. Most insurers now provide policies that are tailored to insure tenants who are receiving housing benefits. Landlords who compare policies and shop around will find a company that will insure DSS tenants.

Additionally, landlords can take extra precautions by requiring tenants to have a guarantor or requesting a larger deposit to mitigate potential financial risks.

Myth 4

Universal Credit Payments Are Always Delayed and Unreliable

Some landlords worry that Universal Credit housing myths are true and that payments will always be delayed, leading to inconsistent rent collection.

Reality

While first payments sometimes take a couple of weeks to make when a tenant initially makes an application for Universal Credit, this is not so for continuing payments. As soon as it is established, payments are received on a fixed schedule.

Apart from that, tenants can make requests for Alternative Payment Arrangements (APA), which permit landlords to have rent paid by the government, providing a predictable and stable source of income.

DSS tenants budget properly to pay rent on time, just like employed tenants. Blanket judgments that payment problems should be the reason for not approving a prospective tenant are not advisable.

Myth 5

DSS Tenants Are Unemployed and Unwilling to Work

There is a stereotypical belief that DSS tenants are unemployed who do not want to work but survive on benefits alone.

Reality

Most DSS tenants are in work but claim housing benefit to top up their earnings. Low pay, part-time jobs, or zero-hours contracts tend to mean that even the employed need state support to pay for housing. Others will be in short-term situations, e.g., between jobs, looking after relatives, or recovering from sickness.

It is not fair to think that DSS tenants are lazy or do not want to work. Many of them are actually looking for stable jobs or working diligently to earn a living and take care of their families while on assistance.

Myth 6

DSS Tenants Create More Legal Problems and Evictions

Landlords feel that DSS tenants are more prone to create conflicts, not pay rent, or need eviction actions.

Reality

Disputes and evictions can happen with any tenant, whether they are on benefits or not. Problems usually arise because of unexpected financial problems, poor communication, or miscommunication in the tenancy agreement.

By maintaining open communication, having realistic expectations, and performing regular checks, landlords can minimise the possibility of legal arguments. Eviction must always be a last option, and an open line with tenants can prevent most problems before they become issues.

Myth 7

It’s Legal to Refuse DSS Tenants

One of the most common DSS tenant myths is that there are many landlords who feel that they are legally entitled to exclude DSS tenants without any threat of legal retribution.

Reality

Landlords and letting agents in the UK who are unwilling to lease to DSS tenants might be discriminatory. Courts have held that general “No DSS” policies are illegal since they unfairly target people with disabilities, single parents, and other disadvantaged groups.

Rather than turning down DSS tenants, landlords ought to evaluate all applicants equally based on their capacity to pay rent and take care of the property.