WINZ tenants + case manager

[crashy]

We are looking at a couple who are both on WINZ. I did search but didn't find the answer.

As I understand it WINZ pays the landlord directly, so the rent is effectively guaranteed.
Are there hidden traps when dealing with WINZ or their tenants?
They want a 2-3 year lease, is this advisable?
This couple seems to have no rental history. What should I base my decision on when they can provide me with virtually no background?
A WINZ case manager phoned me and said she was working on their case and that I had to complete a supplier form. No problem there. Are there questions I should be asking this case manager?
Are there any conditions I should add to the lease?

Thanks

[PTWhatAGreatForum]

Who guarantees the lease?

[artemis]

Tenants where rent is paid by WINZ can cancel the arrangement unilaterally any time they like. So rent is not guaranteed. WINZ will tell you that the arrangement is at an end but not why (privacy).

WINZ might come up with payment if rent gets behind and you want to evict. They will need the eviction to be formal. If you think this might happen be aware there will be many hassles.

Beneficiaries have lower income and can easily fall into debt. Rent might not be top of their list.

Tenants may come off benefit and onto an uncertain income.

Tenant history. Do you know why there is no history? Sounds a bit odd. Might be worth signing up with TINZ for their tenant checking. Case manager will not tell you anything that might breach privacy.

We have only had a few tenants on benefit. One was very good, one a bit below average, and one couple had various health issues and needed quite a bit of managing. But we understood this from the outset and decided to put in the extra effort.

Beneficiaries tend to be harder on properties as they are at home a lot more than tenants who work.

[HPM]

WINZ have a fairly new thing called "Tenancy Costs Cover", which basically adds another 4 weeks worth of bond which is guaranteed from WINZ. If you do go ahead, get the tenant to arrange this with WINZ. and get a copy of it.

[HPM]

Also, I will only do periodic tenancy agreements with WINZ clients. As Artemis said, the client can cancel the WINZ payments to you at any time.

[BigDreamer]

Rent is not guaranteed.

Also, you could have WINZ tenants where the rent amount is *not* paid directly from WINZ to you. In your instance, we recommend that you are clear on the fact that the rent must be paid directly to you from WINZ. Filling a form with WINZ only makes you a supplier and does not guarantee this. You have to be very careful and sure of the terms between you and the future tenants.

Similarly, the tenants can stop paying you at any time. For example, they could end up finding another rental and moving there without letting you know and the payment from WINZ could stop. As a landlord, you won't be able to 'demand' the payment from WINZ as the arrangement is between the tenant and WINZ and not you and WINZ.

All the best.

[Keys]

Also, I will only do periodic tenancy agreements with WINZ clients. As Artemis said, the client can cancel the WINZ payments to you at any time.

Careful with periodic tenancies. These are, by definition, short term tenancies. That being one which the tenant can terminate on 21 days notice. Check with your insurance company. Are you insured for tenancies under 90 days in length? We never do periodic tenancies as a first option now.

[Perry]

We never do periodic tenancies as a first option now.

What's your alternative, then?

[Keys]

Minimum three month FTT. As long as it is over 90 days. FTT's run over to periodic.

[PTWhatAGreatForum]

As a landlord, you won't be able to 'demand' the payment from WINZ as the arrangement is between the tenant and WINZ and not you and WINZ.

In support of the post by BigDreamer, never confuse the customer with who is paying the bill. In this case the customer is the tenant and WINZ is paying the bill, but are not guaranteeing it. You are at risk of ending up in a situation where one party blames the other. Personally, too complex and risky for me in any sphere of business. But if you are prepared to take the risk and not assume the arrangement is anything more than it actually is...