Rent account management

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• 1. Statement of intent
• 2. Detail
  • Rent payments
  • Current rent arrears
  • Garages
  • Former tenant arrears
  • Credit references
• 3. Key targets / standards

1. Statement of intent

1.1 Woking Borough Council has a responsibility to ensure that all rent payments are made in line with tenants' obligations under their tenancy agreements. It is the aim of the Council to ensure that payments of rent are received when they are due.

1.2 The Council aims to provide regular accurate information to tenants about their rent accounts and to offer a range of rent payment methods, taking into account the needs of different groups within the community.

1.3 The Council acknowledges that some tenants may from time to time have difficulties in making regular rent payments and may accrue arrears as a result. The Council will offer tenants every possible assistance to help them to overcome potential difficulties in making rent payments and to ensure that any arrears accrued are cleared.

1.4 General benefit and debt advice will be offered with a view to maximising tenants' income and ensure repayment of the debt.

1.5 Where tenants fall into rent arrears, the Council will adopt a firm but fair approach, but will always take action to recover the rent owing. Similarly, attempts will always be made to recover former tenant arrears. Due consideration will be given to guidance relating to the DDA.

1.6 From time to time financial institutions seek credit references for the Council's tenants. The Council will provide a reference only if the tenant gives his/her written approval and on payment of a charge (to be determined annually) to cover the administrative cost.

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2. Detail

Rent payments

2.1 Various methods of payment will be offered including giro, direct debit, payment at the Council Offices, deduction of salary (staff only), by debit/credit card, by `smart' card at appropriate locations, direct payment from benefits, over the phone by debit/credit card, home banking via internet.

Current rent arrears

2.2 The action to recover rent arrears follows a detailed procedure and offers the tenant opportunities to bring any outstanding debt under control.  Immediate clearance of the debt is preferred but not always obtainable and an arrangement can be made to clear the debt within a reasonable period.

2.3 Officers are encouraged to make personal contact with tenants whenever possible and to keep them informed of the process at all stages from initial contact through to eviction where this is the final stage of the recovery process.

2.4 Any known recognised agency representing or engaged with the tenant's household will be notified of proposals to enforce an outright possession order.

2.5 In exceptional circumstances, a debt will not be pursued, and will be written off: each case will be considered individually and no precedent will be set.

Garages

2.6 Private tenants will be asked to pay their rent by direct debit.

2.7 Arrears will be pursued through legal routes and unless there are exceptional circumstances, garages will be repossessed within 14 days unless the debt is cleared.

2.8 Garages may also be let to homeless applicants where there is a duty to store goods. This is separate from HRA funding.

Former tenant arrears

2.9 All debts will be pursued either by writing to the former tenant at their new home or, in the case of a tenant having died, by writing to executors of their estate.

2.10 Debt recovery agencies will be considered.

2.11 Where there is dispute or the former tenant had limited income, a 50:50 settlement will be considered.

2.12 Where it is not cost effective to pursue the arrear, the debt will be written off.

Credit references

2.13 If a credit reference is given no information about action taken or proposed by the council will be disclosed. In certain cases the charge may be waived.

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3. Key targets / standards

3.1 In any financial year, the average percentage of current rent arrears excluding non-rental elements) shall not exceed 1.5%.

3.2 Rent owed from former tenants shall not exceed 1.0% of the gross annual debit.

3.3 All delegated authorities will be based upon current standing orders and financial regulations.

3.4 Procedures will be updated and amended periodically to reflect current standing orders, financial regulations, legal and good practice.

Date Approved: 23 March 2005 (Amalgamates policies 31.  Rent 
                               collection; 36. Rent Arrears Recovery; 71. Provision of
                               Credit References)
                               February 2008