RENT COLLECTION AND ARREARS RECOVERY POLICY

CONTENTS

1 / Introduction
2 / Policy Statement
3 / Tenants with special needs
4 / Key principles of Rent Recovery
5 / Implementation of the policy
6 / Responsibility
7 / Consultation
8 / Review
9 / Former Tenant Arrears
10 / Associated documents
Produced by / Date
Richard Jeffreys / 9th October 2009.

1.  Introduction

I.  Stockport Homes has a firm but fair policy as it is particularly important that tenants pay their rent either directly or through Housing Benefit so that it can afford the investment needed to their homes.

II.  Stockport Homes will adhere to the requirements of the Housing Act 1985 (for secure tenancies) and the Housing Act 1996 (for Introductory Tenancies)

Housing Organisations must provide good quality housing services for residents and prospective residents.

Legal possession of a property is sought as a last resort.

III.  The Chartered Institute of Housing states that it is particularly important for landlords to have policies and procedures for rent arrears recovery, as poor management of arrears costs the landlord money and could ultimately cost the tenant his or her home. In addition procedures are needed to ensure that tenants are treated fairly and objectively on the basis of their individual circumstances and not according to stereotypes or the prejudices of Officers or members of the Board of Management. (CIOH – Housing Management Standards Manual, Rent arrears: Policies and Procedures.

IV.  The recovery of rent arrears is an area of Stockport Homes’ performance that is used as an indicator as to how efficient it is as a Managing Organisation, and this information is published as part of the Performance Indicators. Accordingly, the recovery of rent arrears will always be accorded a high priority, and Stockport Homes will seek to achieve a good performance at all times.

V.  Details of the recovery procedure are contained within the Rent Arrears Recovery Procedure.

The Rent Arrears Policy will be publicised –

·  As part of the procedure for signing-up new tenants

·  Within the tenancy agreement

·  As part of the Tenant Handbook

·  Through contacts with local voluntary groups, community groups and statutory agencies

·  Through the Tenant Consultation Service and Tenant Forums

2.  Policy Statement

Current Arrears

I.  All tenants of Stockport Council have a tenancy obligation to pay their rent, water charges and service charges and maintain their rent account free of arrears.

II.  Stockport Homes accepts that a tenant’s personal circumstances may change (for example through illness, family bereavement, unemployment or other personal circumstances such as the birth of a child) and that this can sometimes make it difficult to pay.

III.  The policy for controlling rent arrears is to provide all tenants, at the earliest opportunity, advice on benefits, inform tenants promptly of changes to their rent charges and make early personal contact with tenants whose accounts go into arrears.

IV.  Stockport Homes will make available to individual tenants; at all stages of the recovery process private interviews either at home or in the office. Stockport Homes or a suitable agency, such as Corporate Debt Officer, Citizens Advice Bureau, Stockport Law Centre or Welfare Rights Service will make debt-counselling advice available to all tenants upon request. A financial assessment of a tenant’s circumstances with a view to making realistic arrangements to pay off the arrears will be made.

V.  Stockport Homes will in cases of increasing arrears take legal action to repossess the property under section 83 of the Housing Act 1985, Ground 1 of Schedule 2 which states that “Rent lawfully due has not been paid”. At all stages of the legal process, tenants will be informed of the reasons for action, the implications of the action and where they can get help and advice. (Chartered Institute of Housing – Housing Management Standards Manual Rent Arrears: Policies and Procedures).

VI.  Stockport Homes does not use distraint in arrears recovery but will pursue other legal remedies such as attachment of earnings, where repossession is inappropriate.

3.  Tenants With Special Needs

Stockport Homes will:

I.  Deal sensitively with tenants who are in rent arrears because of matters related to their support needs, such as ill health, mental infirmity or personal circumstances.

II.  Ensure that older tenants of pensionable age, tenants with serious physical or mental health problems are not sent inappropriate threatening letters for technical or small arrears (see Rent Arrears Procedure for definitions)

III.  Ensure that rent payment options are accessible and convenient for people with support needs e.g. door to door collection if at all possible.

IV.  Have an agreed strategy with Social Services and other relevant agencies for dealing with the arrears of tenants who have support needs which make them less able to manage their financial affairs.

V.  Liaise with the Housing Benefit section to help ensure that tenants with support needs receive Housing Benefit promptly (if necessary to develop service protocols).

4.  Key Principles of Rent Recovery

I.  Personal contact. The policy is based on a high level of personal contact and casework with the tenant. Personal contact is supported in writing by letters confirming arrangements and agreements made.

II.  Records to be maintained and recorded on the Northgate Housing Management system.

III.  The Recovery Officer has the primary responsibility for the recovery of rent arrears on his/her management patch.

IV.  The tenant must be interviewed at certain key stages (that are outlined in the Rent Arrears Procedure); this includes a pre-eviction request interview with the Recovery Officer.

V.  The Rent Arrears Procedure outlines the process that commences at the beginning of rent arrears identified with the main principle being one of prompt action.

5.  Implementation of the Policy

I.  Stockport Homes will maintain a computerised rent accounting system, which highlights tenants in arrears, and assist staff with arrears monitoring and recovery.

II.  New tenants will be given Welfare Benefit advice, guidance about benefits and will be assisted to complete a Housing Benefit application form at the start of the tenancy.

III.  The Arrears Procedure will be published in plain language and made freely available to tenants. The procedure for rents arrears recovery gives full details of the action to be taken and a timetable for action.

The main points are:

·  All tenants will have several methods of payment available and can use the one that best suits them. Standing order and Direct Debit payments must, wherever practical, be made in advance.

·  All new tenants will be provided with information on Welfare Benefits and Housing Benefit entitlement

·  Tenants will be advised of any change to rent payable promptly

·  Warning letters will be sent to all tenants who owe more than 2 weeks rent

·  Where contact with the tenant can be established, a financial assessment will be undertaken for all tenants whose arrears total equates to 4 weeks or more rent

·  A Notice of Seeking Possession or Notice To Terminate will be served when the outstanding arrears total equates to 4 weeks or more of the rent payable (unless there are extenuating circumstances)

·  Court action will be commenced when the outstanding debt is greater than the amount outstanding at the service of the Notice (unless there are extenuating circumstances. For example, if it has been confirmed that backdated housing benefit credit is due to the account)

·  A Suspended Possession Order will be requested at the court hearing (unless there are extenuating circumstances), and this will be pursued where the tenant is in breach of the order

·  All requests for eviction are made by a Recovery Officer and supervised by a Current Rent Arrears Manager

IV.  Stockport Homes will treat all joint tenants as jointly and severally liable for rent arrears on the account (except in extenuating circumstances)

V.  Stockport Homes will liaise with the Housing Benefit Office on the payment of benefit to its tenants. Stockport Homes will negotiate a Service Protocol with the office to cover such matters as the determination of eligible rents and service charges, timescales for processing claims, information sharing, housing benefit overpayments and monitoring and review processes.

6.  Responsibility

I.  The overall responsibility for the effective implementation of this policy lies with the Director of Housing Management who is also responsible for ensuring that all employees with responsibility for rents and rent arrears recovery are given training in debt counselling and money advice including assessment of entitlement to Housing and Welfare benefits.

7.  Consultation

I.  Stockport Homes will consult on an annual basis with the local authority, advice agencies and Social Services in order to continually develop good practice in this policy area

II.  Any proposed changes to this policy will, before implementation, be fully discussed with:

·  The Relevant staff;

·  The Management Board

·  Any other relevant bodies

8.  Review

I.  Stockport Homes will review its rent arrears policy formally on an annual basis

II.  A half yearly report will be submitted to the Management Board giving performance details as follows;

·  Rent collected as a percentage of rent due

·  Performance against agreed targets

·  The total arrears outstanding as a percentage of annual debit

·  The total number of tenants in arrears and the percentage of tenants in arrears

Stockport Homes will report on performance annually to tenants in the Annual Report and Statement of Accounts

9.  Former Tenant Arrears

I.  Stockport Homes will pursue former tenant arrears as long as recovery remains economically viable. This may include seeking a money judgement through the County Court and taking enforcement action.

II.  Details of the procedure are contained within the Former Tenants Arrears Procedure.

III.  The Board of Management will receive annual reports with recommendations for write-off for Former Tenant Arrears.

IV.  Debt Collecting Agencies will be used to trace former tenant arrears and to collect arrears owing.

10.  Associated Documents

I.  Stockport Homes has clearly documented procedures in the following areas:

·  Rent arrears

·  Former Tenant Rent Arrears

·  Garage Rents

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