Void Report

INTRODUCTION

This report sets out the findings of the second scrutiny review conducted by the Scrutiny Panel together with recommendations following the investigations into the way void properties are managed. The scrutiny review has taken 14 months to produce as the Scrutiny became involved in the decision making process and association visits whilst Newport Housing Trust sought a partner before becoming Derwen with the Seren group. This meant the group did not work on the report for approximately 6 months during this process.It was also an area that presented challenges in turning properties around quickly and the high cost in preparing the property for a new resident. The scope of the scrutiny focused on the letting standards as follows:-

1)Void standards, including gardens

2)Decoration – flexibility and choices for new tenants

3)Turnaround time to re-let

4)Information provided for new tenants. (Subject of next scrutiny)

METHOD OF SCRUTINY

The process began with a general meeting to hear about staff responsibilities, which are split between housing management and maintenance. The panel then agreed the scope of the scrutiny and a plan of key actions that would be needed. The scrutiny took place after agreeing the following key stages:-

  • Gathering information from a wide range of sources, listed below. Figures for 2012/13 were looked at with a detailed breakdown of letting times and cost of works.
  • Visiting former NHT empty properties and later former Charter Housing properties now incorporated into Derwen before and after works are completed. Scrutiny panel members were able to visit several properties during the scrutiny period to assess the condition they were left in by the former tenant, and, also the schedule of works required. Photographs were taken and shown to the other membersof the panelto give them an ideaof the problems that needed to be addressed when inspecting an empty property.(See Appendix 1)
  • Visiting Monmouthshire Housing empty properties for a comparison of how another landlord manages void works.
  • Gathering information from scrutiny networkmeetings, including the study of two void reports presented by Newport City Homes and Newydd.
  • Discussions with former NHT staff- several discussions and presentations were given to outline various details about how NHT deals with voids.
  • NHT standards and published information (prior to Derwen).
  • 6 weekly visit questionnaires following the beginning of the tenancy.
  • Complaints.
  • Researching best practice, including information provided to new residents.

Information from staff was an important starting point and throughout the scrutiny several documents were reviewed. There were question and answer sessions with staff discussing the void process and procedures followed, the panel looked at the void inspection form and reviewed information provided during the 6 week visits to new tenants. Despite the complexities involved, void turnaround performance was good in 2012/2013, with average weekly void turnaround times of 5.4 days and void rent losses were kept down to a minimum of £1721.41 for 2012/13; (Appendix 2) where the average cost for void works per property has been contained to £1,566 in 2012/13, which was a good achievement. (Appendix 2.1) The cost of void works has to ensure the property is suitable for a new tenant and meets legal obligations with regards to gas and electrical safety checks. The cost will also cover any redecoration and garden works. In addition the feedback from new tenants was very positive and shows a balance of costs/time andre-let standards were achieved in most cases.

Summary

The Scrutiny Panel concludesthat it is the responsibility of Derwen to maintain, lease and oversee their housing stock. It is also Derwen’s responsibility to safeguard the needs and health and safety of its tenants, by making informed decisions and choices to fulfil their duty of care, while at the same time,being mindful of the financial impact, such decisions will have on the company as a whole. The housing stock involved is designated for tenants over the age of 60 for the bungalows and 55 for sheltered schemes. There are, therefore, specific issues to be considered:-

When a property becomes vacant it must be redecorated to as high a standard as possible if the property is to remain as a viable and valuable asset over a number of years.

Redecoration should be carried out immediately, efficiently and appropriately to avoid loss of revenue.

The scrutiny panel supports Derwen’s aim to offer properties for rent that are safe, pleasant to live in and value for money, within the framework available. Each property is individually assessed for redecoration purposes. Some will need very little decoration, whilst other properties will need a comprehensive programme of work. When making such decisions it is important to take into account the financial ramifications of such work, while at the same time, the age and physical wellbeing of the prospective tenants must be taken into consideration.

To facilitate the decision making in each case a void checklist has been suggested to support the current checklist (appendix 3), one that will support a high standard of works internally, externally and of redecoration, thereby enhancing the aesthetic presentation of each property and as a result the community as a whole. (Appendix 3.1 and 3.2)

Recommendations

The Scrutiny panel would like to offer the following issues for discussion and put forward recommendations which it feels will enhance the experience of the tenant and support the good practice already in place.

RECOMMENDATIONS / EXPECTED OUTCOMES
1)The development of a void standard, taking in the recommendations made by the scrutiny panel. This standard will be used for all Derwen properties.
The void standard should be
explained and handed to prospective
tenants when viewing properties. /
  • Clarity for staff and prospective tenants regarding the guaranteed standard necessary in terms of decoration, health and safety requirements and budget availability.
  • Good Health and Safety.
  • Upkeep of property generally.

2)Creation of pictorial record. Photographs of each property taken before and after redecoration. This should become part of the void process.
Pictorial evidence should include: repairs, cleanliness, decoration, (internal and external). Including facia boards, guttering, pathways and any other health and safety issue. /
  • To assess, monitor and collect evidence of standards of works.
  • To evidence value added.
  • To provide a benchmark for future lettings.
  • To enhance the aesthetic presentation, and provide good quality homes.
  • Good health and safety.

3)Decoration should be carried out efficiently and appropriately – as assessed in the void checklist.
TENANTS CHOICE
Tenants should be offered the
choices of:
  • Basic decoration for example
magnolia throughout.
  • Choice of colours (limited).
  • Vouchers to purchase paint and decorate themselves.
/
  • Quick void turnaround especially on hard to let properties.
  • Choice will encourage a sense of ‘ownership’ and heightened customer satisfaction.

4)The establishment of a ‘handyman’ service (possibly an in-house team to carry out minor repairs and to support tenants when they move into the property. /
  • Minor works carried out efficiently and offering tenants choices (at a small cost), helping to make a house a home e.g. help moving in, putting up shelves/pictures and building flat pack furniture.

5)New tenants should be given the option of keeping items such as loft ladders, extra patio slabs, providing they are safe and of good standard.
Good quality carpets, white goods and furniture also including curtains and blinds could be kept or re-cycled to any relevant charity organisation.
A disclaimer would be signed by the tenant stating that Derwen would not be held responsible for any accidents occurring as a result of the tenant’s choice. This will need to be researched by Derwen staff. /
  • Customer satisfaction
  • Cost saving for both tenant and Derwen

TO CONCLUDE

In this report the scrutiny panel has endeavoured to point out areas of good practice already in place, whilst at the same time highlighting areas of concern to both the panel members, tenants and staff.

The transition from NHT to Derwen is in its early stages and teething problems have been identified. The scrutiny panel are hopeful that this report will help to bring about change in areas of concern such as hard to let properties, cleanliness issues after re-decoration and unattractive design problems.

More difficult to let properties means that valuable revenue is being lost due to properties being left empty for long periods of time. During the year 13/14 there was two properties that were void for 19 and 22 weeks causing void losses at the properties. The property void for 19 weeks made a loss of £1773.65, and 22 weeks a loss of £1531.20. (Appendix 4). Both properties were in the sheltered scheme Stratford House and there were numerous refusals for the properties due age of the applicants, design issues such as the properties were on the 1st floor with no lift and had many steps up to the properties and the windows were very low at both properties.

It is possible that some form of incentive could be considered for hard to let properties, but what form this would take would have to be decided on a property by property basis. Such an incentive was offered in one of the properties mentioned above and it did prove to be a success and it is recommended that it is implemented in future void policy.