Rent Arrears Policy

Rent Arrears

CARRICK HOUSING LTD

RENT ARREARS POLICY

This policy of Carrick Housing is also the policy of Carrick District Council.

This policy covers

·  Rent arrears for secure and non secure tenancies

·  Garage rent arrears

·  Refunding overpayments of rent

Overall Objectives

Carrick Housing’s aim is to provide a housing service that is

·  Sensitive to the needs of the individual

·  accountable

·  fair

·  efficient

·  responsive and flexible

Carrick Housing take rent arrears very seriously and we expect all tenants to pay the rent that is due each fortnight. This is an important Condition of Tenancy.

However, we recognise that occasionally tenants may have financial difficulties and are unable to pay the rent due. In these cases our service aim is to be ‘firm but fair’ and provide all tenants in arrears of rent with basic money advice and to offer clear and affordable repayment plans.

We will provide detailed rent statements every quarter to all tenants and statements or balances are available on request. In all rent arrears cases we will

·  take early action in every case

·  make personal contact with tenants - backed by letters if there is no response

·  provide up to date rent account balances

·  document all actions and conversations

·  provide pre tenancy advice on paying your rent

·  provide provisional calculations of housing benefit for new and existing tenants

·  write rent arrears letters in plain English

·  agree negotiated payments based on the tenants income and reasonable expenditure

·  check that housing benefit is not due before proceeding to the next stage of action (however this may not prevent the next stage of action)

·  if required produce a provisional assessment of Housing Benefit entitlement

·  take further action if payment is not made or agreements are breached

·  where necessary recover arrears via direct deductions from benefits or wages

·  translation services where required

We will also offer

·  welfare benefits, debt counselling and money advice

·  arrangements to have your arrears deducted from your wages

Customer welfare Checks

Carrick has many tenants who are elderly, who are vulnerable through mental or physical disabilities, who have young dependent children and who have literacy problems. In accordance with our Service Standards Policy and our equality statement these tenants will be treated fairly and in accordance to their needs within this rent arrears policy. All tenants must pay rent but for those tenants listed below the following safety checks will be adopted.

For tenants who are either of pensionable age or with disabilities as defined on the Disability Discrimination Act 1995

·  we will offer to assist the recovery of arrears by collecting the rent until an alternative means of recovery can be arranged

·  we will always ensure the repayment plans are realistic for the tenant

·  a Notice of Seeking Possession will not be served until a home visit/interview has been completed

·  we will request that County Court Possession Orders requested be suspended on payment of rent plus a suitable sum

·  we will inform the appropriate department of Cornwall County Social Care* when requesting a warrant for Possession to be executed by the County Court.

For tenants with a housing support package

·  we will always ensure the repayment plans are realistic for the tenant

·  a Notice of Seeking Possession will not be served until the situation has been discussed with the support worker

·  we will request that County Court Possession Orders requested be suspended on payment of rent plus a suitable sum

·  we will inform the appropriate department of Cornwall County Council Social Care* when requesting a warrant for Possession be executed by the County Court

For households with young children (i.e. under 16)

·  we will normally request that County Court Possession orders are suspended on payment of rent plus a suitable sum.

·  We will inform the appropriate department of Cornwall County Council Social Care* when requesting a warrant for Possession be executed by the County Court

* All references to Cornwall County Council Social Care include Adult Social Care and Services for Children, Young People and Families

For tenants with literacy problems

·  we will attempt to communicate all key decisions verbally

Equalities Principles

For tenants whose first language is not English we will

·  provide all written information translated into their chosen language

·  conduct all interviews through appropriate translators

Customer Care in Letters, Home Visits and Interviews

Letters

All letters will be in accordance with our Customer Care Policy and Rent Policy

·  be in plain English

·  be correctly addressed

·  have the Carrick Housing free phone number

·  have the Housing Officers name

·  be in sealed envelopes

·  show a current rent account balance with date

·  request to pay outstanding debt with suitable repayment plan if appropriate

·  give the tenant the option to re-negotiate the repayment plan if appropriate

·  detail how to access Welfare Benefit advice from Carrick Housing and independent advice from the Citizen’s Advice Bureaux

·  a summary of the action that will follow if the tenant does not repay outstanding debt

OFFICE INTERVIEWS AND HOME VISITS

All interviews, at the tenant’s home or in the Carrick Housing offices, must be sensitive and non-threatening. They must take place in private and be confidential. For interviews in the tenant’s home Carrick Housing staff will introduce and identify themselves with Identity Cards. For interviews without prior appointments at the tenant’s home or in the office, the tenant must be made aware that a rent interview is to take place. If it is not convenient for the tenant to discuss rent account details an alternative appointment will be offered and documented.

Failure by the tenant to agree or keep a subsequent appointment will be deemed as approval to move to the next stage of the rent arrears policy unless there is good cause not to do so.

All interviews will be documented and the key points confirmed in writing.

Home visits and telephone contacts for rent arrears may take place outside of normal office hours. However, they should occur between 8am and 8pm, Monday to Friday, except in the most exceptional of cases. All out of office hours visits and telephone calls will only occur after we have been unable to contact the tenant within normal office hours.

In exceptional cases, where we have been unable to contact a tenant by conventional means, we may telephone the tenant at their work, or other address. In such cases, confidentiality will be maintained and we will only conduct an interview if it is convenient to the tenant.

NEW TENANTS

Carrick Housing recognises that new tenants who have recently moved house are more likely to have financial problems and to assist new tenants we will give pre-tenancy rent advice at the signing up of a tenancy. The sign up includes

·  An offer of an appointment with the Welfare Benefits and Advice Officer where appropriate

·  Help with completion of the housing benefit form and provisional assessment if applicable or required

·  a copy of the tenants handbook

·  advice on when, where and how to pay rent due

·  an evaluation of welfare and support needs

Between 3 and 7 weeks every tenant moving into a Carrick Housing property will have a visit to check:-

·  they are paying the correct rent due

·  that any housing benefit claim has been processed or advising the tenant to provide any information outstanding that is needed to process the claim

·  whether they need an appointment with the Welfare Benefits and Advice Officer

·  whether there is need for a re-evaluation of their welfare and support needs

Sole Tenancy

In households with single tenancy agreements and where the householders are married, cohabiting, or have joint custody over children under 16 – we will always encourage the tenant to keep other interested parties within the household informed of any legal action in connection with rent arrears.

Joint Tenancies

For joint tenancies we will

·  address all letters to all the tenants named in the tenancy agreement

·  make agreements and hold interviews with any tenant who appears to be acting on behalf of all parties in the tenancy agreement

·  provide a copy of all legal documents to all parties named in the tenancy agreement.

Access To Independent Advice

Carrick Housing believe that tenants in rent arrears should have access to independent advice and they will be advised in letters and encouraged at interviews to seek independent advice.

Persistent Non Payers Of Rent

This Rent Arrears Policy is designed for those tenants who have difficulty paying their rent due to financial problems. For tenants, who are persistently in rent arrears (having arrears greater than two weeks rent payable, more than twice in any six month period) Carrick Housing will begin rent arrears action at the appropriate stage in the arrears policy.

Stages for Action in the Rent Arrears Policy

Carrick Housing will proceed to the next stage of the procedure unless the arrears have been cleared or a payment plan is in place and the debt is reducing.

The term “weeks rent” means the tenants individual property rent including service charges per week.

The term “weeks rent payable” is the net rent payable by the tenant after the Housing Benefit is deducted per week.

For persistent arrears cases (see definition) action can start at Stage Three.

Stage One

Rent Arrears of 2 weeks rent or 2 weeks rent payable

Carrick Housing will

1)  send a reminder letter

Stage two

Rent arrears of 4 weeks or 4 weeks rent payable

Carrick Housing will

1)  visit the tenant in their own home . If the tenant is unavailable a statement will be left at the property in a sealed envelope. The tenant will be asked to contact their housing officer within 7 days.

Stage three

Rent arrears of £300 or persistent rent arrears cases (having arrears greater than two weeks rent payable, more than twice in any six month period)

Carrick Housing will

1)  send a strong warning letter advising the tenant that legal action may commence should they fail to address the situation

Stage four

For rent arrears greater than £400 or 8 weeks rent payable if greater arrears than £50.

Carrick Housing will

1)  issue a Notice of Intention to Seek Possession (NSP). This will only be issued following an initial Human Rights Assessment has taken place

Note: A Notice of Intent to Seek Possession is a 28 day legal warning that if the amount displayed on the Notice, is not cleared within 28 days Carrick Housing can ask the Court to evict the tenant.

Stage five (a)

Rent arrears greater than or equal to the amount stated on the NSP (unless pending housing benefit has been received) and greater than £400.

Carrick Housing will

1)  ensure the Housing Services Director, considers the case before possession proceedings commence. This will only be done following a secondary Human Rights Assessment.

Stage Five (b)

Rent arrears lower than sum stated on NSP but greater than £400 if no payment for 4 weeks.

Carrick Housing will

1)  review the arrears and the Housing Services Director will consider whether possession proceedings should commence. This will only be done following a secondary Human Rights Assessment.

Stage Five (c)

Rent arrears greater than sum on NSP but lower than £400.

Carrick Housing will consider

1)  County Court actions to recover the debt which will affect the tenant’s future credit facilities (e.g. Small Claims Court)

2)  Attachment of Earnings Order at the County Court

Stage Six

Rent arrears greater or equal to Stage 5A or 5B.

Carrick Housing will

1)  request County Court listing for Possession action.

2)  always attempt to carry out pre-court interviews (no earlier than 4 weeks prior to the court date).

3)  seek a Suspended Possession Order except in exceptional circumstances where possession is deemed appropriate by the Housing Services Director. In making this decision the Housing Services Director will consider the vulnerability of the tenants under the Customer Welfare Check.

4)  Advise Carrick District Council Housing Options section that a Possession Order has been granted.

5)  Send an SPO 1 letter and SPO 2 letter if the Possession Order is breached.

Stage Seven

If the tenant fails to maintain the terms of the Possession Order

Carrick Housing will

1)  request the Court to issue a warrant for possession leading to eviction following a final Human Rights Assessment.

2)  inform the Housing Options Section of Carrick District Council at the time we request the warrant from the Court. Keep them informed about the date for eviction when it comes through and request that an officer attends the eviction

3)  inform the appropriate department of Cornwall County Council Social Care in the case of vulnerable tenants of the eviction date and state the reasons for the eviction

4)  Send letter to tenant informing them of the date of eviction and asking them to clear their personal belongings from the property and to return the keys prior to eviction. This letter will strongly suggest that they contact Carrick District Council Housing Options Section for advice. A copy of this letter will be sent to the Housing Options Team

5)  repossess the property

6)  notify RSPCA if there are any animals present

Stage Eight

The Eviction Procedure

Carrick Housing will

1)  transfer all outstanding arrears and court costs to a former tenant account

2)  itemise and photograph all possessions not seized by the bailiff

3)  store all possessions of monetary value left in the dwelling at a storage site and in accordance with the legislation

4)  Dispose of all items of no monetary value

·  The references within this policy to Cornwall County Council Social Care includes both Adult Social Care and Services for Children, Young People and Families.

Stages for Action In the Rent Arrears Policy for Non-Secure Tenants