Almost 75% of landlords and agents are happy to let their properties to LHA tenants, while over half of respondents believe that LHA tenants are no more troublesome than private tenants.
However, the biggest fear surrounding LHA tenants is rent arrears, with 61% of respondents citing this is a major concern, says the study from Dssmove, a website that connects tenants with landlords and agents.
It also found that 33% of landlords and agents are concerned about fraud and criminal activity with LHA tenants, 50% believe there is little difference between LHA and private tenants and 40% believe LHA tenants care for their property as much as private tenants.
‘Our research demonstrates that attitudes to LHA tenants are changing. If landlords and agents know how to deal with LHA tenants, then they can enjoy the benefits of potential higher rental income, reduced void periods, lower arrears and longer tenancies. More and more landlords and agents can see the commercial benefits of letting to LHA tenants,’ said the website’s founder Aki Ellahi.
‘I have been a landlord for over 10 years and all my properties are occupied by LHA tenants and I have experienced very few problems over the years. I have currently 500 tenants on benefits and achieve a rent collection record of 100%. I would not be able to achieve this level of success without the use of Credit Unions. Using such organisations to collect housing benefit and pay this across to the landlord or agent is very convenient,’ he explained.
‘My experience over the years has shown me that tenants do not want the hassle of dealing with housing benefit. Although they understand that they need to apply for housing benefit, they prefer if the landlord or an agent, who can assist them with doing this on their behalf, as this has been the case for as long as I can remember.
‘The temptation to spend housing benefit can be far too great for tenants and you often find tenants falling into a debt trap by using housing benefit payments for living costs on a short term basis. So by landlords helping tenants to avoid this temptation and providing the rent is affordable, this is sound reason for a long and secure tenancy to be enjoyed by both parties,’ he added.
He also explained that some Credit Unions work better than others.‘Some pay landlords the same day housing benefit is received, some take five days and the worst I’ve experienced is 60 days. Some charge £1.50 per payment and the most expensive I’ve experienced is £10 per payment. So I think Credit Unions are great, providing they can pay landlords quickly and relatively cost effectively,’ he said.
