4. Property management
4.3 Tenancy management
184.108.40.206 Local housing allowance and rent
Where appropriate, you should co-operate with a tenant’s claim for local housing allowance/housing benefit/ Universal Credit and supply any necessary information promptly to ensure that the claim can be processed as quickly as possible.
You should ensure the tenant is made aware before signing any agreement that they are committed to pay the rent, whether or not they are entitled to receive local housing allowance/housing benefit and that they will be required to make up any shortfall of local housing allowance/housing benefit.
Many landlords prefer not to rent to housing benefit tenants in view of the difficulties which often occur when tenants are in receipt of benefit. This is not actually illegal.
However some landlords find benefit tenants to be very good tenants so be aware of this before making a blanket decision not to rent to benefit tenants at all. It is all down to choice of tenant and careful referencing.