The City of Edinburgh Council is currently contacting those tenants who will be affected.
The reforms will target anyone 'under occupying'. Tenants will lose 14% of housing benefit if they have one spare bedroom or 25% for two or more spare bedrooms.
The Council says tenants have a number of options, including paying rent, moving to a smaller home, maximising income and sharing with friends, family members or lodgers.
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Leaflets are being sent out to those affected to highlight the potential impact of the welfare reforms when they comes into force on April 2013.
Councillor Cammy Day, Housing leader for the City of Edinburgh Council, said: "Tenants need to know just exactly what these changes will mean to them and the potential financial impact it's going to have.
"Some tenants could be faced with a 25% reduction in their housing benefit. Their rent will still have to be paid so that means they will have to make up the difference from their household income.
"If tenants don't pay their rent they are at risk of losing their home. No one wants to see that happen so we are advising people to get in touch with their local housing team now to discuss the various options open to them."
(IT)
