Forms and procedures for LHA Landlords

And therein lies the new thread that Mary suggested. JP has made his point well, that money can be made from LHA tenants, contrary to a lot of info doing the rounds.

I'm not a landlord so i dont see it from the same perspective as you guys. I worry what happens to benefit tenants and I am really pleased to hear JP put another perspective. I'm sure JP aint a saint, he just has different business model and one that helps my social injustice gene. I can more easily sell JPs model to my superiors and help tenants out in the process.

Lets start a new thread and look at UC and how it will impact PRS landlords, social landlords, tenants and enforcement officers, because we are all in this together, that much is clear

Ben the new thread is live and waiting for your reply

Yep couldn't agree mor Mark. as has been stated it is horses for courses.
I choose my horse which has been as a result of experience.
By all means let people suffer their own experience and then make additional investment decisions.
I'm  all for a balanced perspective, this however does have to be based on experience.
If experience is negative do you just ignore it as though there is no such risk and carry on regardless.
I have my own experience which is NOT unique and could be reasonably extrapolated accross that investment choice.
To the point where investors may decide not to invest in that market.
The experience is still valid whether one likes it or not; it happened.
Surely parties should be made aware of the inherent risks with various investment models, that is what this site does, doesn't it?

Being at the coal face , so to speak, have you any conjecture you think might actually be the case that would differ vastly from the the present LHA set-up.
I suppose the bottom line is
Will  the LL  be paid by whoever ? If the tenant fails to pass the rent on?
Will the UC meet the level of LHA.?
Will the Broad Market Area still be used as a template to assess the level of housing benefit for relevant domestic circumstances?
Will full council tax be paid for full LHA claimants as it is presently?.
Clearly I belive these are the crucial questions for anyone thinking of entering specifically the LHA/UC market.
It would be useful now too have an indication as to whether it would be worth it.
Otherwise lots of potential investors will just sit on the sidelines waitng to see how things work out in practice.
The last thing the sector needs is people sitting on their hands waiting to see what is going to happen!?

The future doesnt look good in that respect Paul. Government are pulling the plug on benefit claimants whilst demonising them all as rioters and feckless ne'er do wells, with the help of the press.

Lets take this debate over to the new thread though

Absoultely Paul, this website was created to enable people to share their experiences, good and bad and to allow others to learn from them. That's why I am pleased to have you here to share your experiences and for people like John Paul to share theirs. That way, everybody can learn best practice from each other. The intended result of John Paul writing these articles is to educate anybody going into the LHA market, voluntarily or not (as Mary has said, every tenant is only a P45 or a relationship breakup away from claiming LHA) on what best practice consists of. They can then make a choice on whether to do that themselves, employ a company like Castledene to do it for them or to know what questions to ask a company like Castledene operating in a different part of the country.

Hear, hear for you and property118.com

 A question for JP, Jonathan and Mary (and anyone else who may have an answer): do you know of anyone who is actually using the Credit Union approach already? Is it already up and running in most areas? (I'm thinking specifically of Birmingham for my own interest!)
We're considering going into the LHA market but I think I'd rather use the CU approach rather than rely on getting direct payments and run the risk of having overpayments clawed back.

Lynne, Sorry I haven`t used the CU so have no hands on knowledge.  My limited understanding is though that there are many different types in operation and there is no uniformity across the country. Claw backs are there yes but it has not proved a significant problem for me and never enough for me to even consider moving away from direct payment.  But fully appreciate its horses for courses. 

I think for a small LL the possibility of clawback makes LHA an unviable rental solution.
It would be good if it were possible to obtain an insurance policy to pay any clawback if it ever occurred.
It might even encourage me into the LHA arena.
Unforunately without such a policy I cannot afford to risk retaining a LHA tenant if I end up being directly paid.
It does surprise me that the councils take the attitude that if directly paid they can clawback but not if paid to the tenant.
Or rather they can but know the tenants won't pay back as that is why they are on benefit..
Just because direct payment occurs I still don't see why councils think they can come after the LL if a claim proves not valid.
It is not the LL fault, it is the applicant.
Until this matter is addressed LL will continue to avoid LHA.