Policy date October 2015 Document version Version 3 National Operations Manager Review date October 2018

Transcription

1 Policy Document Debt Management Policy section: 1.0 Policy: Section name: Establishing and Maintaining Tenancies Document name Debt Management Applicability Mission Australia Housing Authorisation Senior Management Team Policy date October 2015 Document version Version 3 Policy owner National Operations Manager Review date October 2018 Contents 1 Purpose Related policies Scope Guiding principles Policy Procedures State and program based variations Responsibility and authority Definitions Debt Management Workflow Tool Purpose 1.1 To provide guidance on the tenant debt management processes undertaken by Mission Australia Housing (MAH). Debt Management, v. 3 Policy Mission Australia Housing

2 2 Related policies 2.1 This policy should be read in conjunction with the: Referrals to Agencies Policy, which details the approach taken by MAH in assisting applicants and tenants with specific needs or tenancy management issues to connect with support services Arrears Management Policy, which details the MAH rent arrears management processes Ending Tenancies Policy, which outlines the responsibilities of MAH staff involved in managing and ending tenancies Tenant Responsibility for Repairs Policy, which outlines the roles and responsibilities of tenants for property maintenance. 3 Scope 3.1 This policy applies to staff responsible for managing tenants and properties of MAH. 4 Guiding principles Tenants are informed of their responsibilities at the start of each tenancy in order to avoid debts wherever possible. Tenants are supported to repay their rental arrears and non-rent debts in order to maintain the financial viability of MAH. Tenants are given opportunities to appeal organisational decisions in order to ensure fair and transparent outcomes. 5 Policy Staff will, at the start of each tenancy, inform tenants of their rent and property care responsibilities under state based residential tenancy and rooming accommodation legislation. Staff will use best practice tenancy and property management processes, including but not limited to rent arrears management and routine inspections, to identify tenant debts owing to MAH. Tenants are responsible for the costs of repairs and/or maintenance where they, members of their household or guests deliberately or negligently damage a property as per the Tenant Responsibility for Maintenance Policy. page 2

3 Tenants are responsible for paying any debts owing, whether incurred during or at end of their tenancy. Tenants will be given opportunities to repay outstanding debts and may be required to enter into a payment plan. Staff will inform tenants of their right to complain about services of MAH and/or to appeal organisational decisions as per the Appeals and Complaints Policy. Staff will pursue a range of options, including but not limited to civil proceedings, to recover costs where tenants refuse to pay their debt or vacate properties without rectifying a debt. Staff will ensure that accurate records of outstanding tenant debts and records of associated tenant payments are stored in the tenancy management system. 6 Procedures These procedures should be read in conjunction with the Debt Management Workflow Tool located within section Informing tenants of their responsibilities Upon signing a lease or rooming accommodation agreement, Housing Managers will provide each tenant with a new tenancy kit. These resources will contain information about their responsibilities and MAH s debt management processes as per the Start of Tenancy and Policy. 6.2 Identifying debts owing Rent arrears Housing Managers will generate daily reports of rental arrears owing through the tenancy management system and will follow process as per the Arrears Management Policy or Vacating a Property Policy, depending on whether recovery action is required during or at the end of a tenancy. Non-rent debts Housing Managers will undertake a range of processes over the course of a tenancy to review the condition of a property, identify outstanding utilities costs and any other outstanding non-rent tenant debts, including: Review of water usage charges where a tenant is responsible for water usage as per the Water Usage Charges Policy Routine inspections as per the Routine Inspections Policy Checks of the number of property keys returned to MAH at the end of each tenancy as per the Keys Policy Pre-vacate inspections. Tenants are provided the Vacating Your Premises Checklist in order to potentially avoid incurring preventable debts page 3

4 Vacate inspections as per the Vacating a Property Policy. Housing Managers will complete the Vacating Form to identify outstanding tenant costs, including outstanding electricity charges. Note: Housing Managers will be required to refer to an original and any subsequent property condition report/s wherever they undertake an inspection of a property. They will be required to determine whether, and the degree to which, a tenant is responsible for the condition of their property as per the Tenant Responsibility for Maintenance Policy. The age of items will be taken into consideration when calculating the amount owing. 6.3 Repaying debts owing Where there is evidence of tenant rental arrears and/or non-rent debts owing, Housing Managers will: Provide them with the opportunity to rectify matters where these matters can be addressed independently by a tenant, for instance, property cleaning Inform them of the applicable process where matters cannot be rectified independently by a tenant, for instance, significant deliberate or negligent property damage Inform them of their right to appeal decisions of MAH as per the Appeals and Complaints Policy Monitor their progress toward either rectifying matters independently or paying their outstanding debt. Housing Managers will put all communication about debts owing and/or progress toward rectifying debts in writing and forward correspondence to a tenant s current or last known address. Payment plans Where tenants have difficulty managing payment of their debt, Housing Managers will seek to have them voluntarily enter into a payment plan. Payment plans will include information about amounts owing, frequency of repayments and time taken to repay debts. These plans may also include special conditions to address any identified root causes of tenant debt where appropriate. Where required, payment plans will be readjusted to account for tenant circumstance and/or their capacity to make payments. Claiming bonds Housing Managers will apply to claim bonds lodged where tenants vacate their property with rent arrears or non-rent debts as per the Bond Payment Policy. Other recovery options Where debts are not paid in full, Housing Managers may engage Mission Australia s legal services. Legal services may seek to pursue an outstanding tenant debt. page 4

5 6.4 Record keeping Housing Managers will store in the tenancy database Evidence of property damage resulting in nonrent debts Correspondence to / from tenant Payment plans Conciliation agreements and/or orders made in civil proceedings Vacating forms Applications to retain tenant bonds. 7 State and program based variations Orders for payment Where a tenant is unable or unwilling to pay their outstanding debt: NSW - Housing Managers in NSW will apply to the New South Wales Civil and Administrative Tribunal (NCAT) for an order to rectify the outstanding debt. Applications may be made either during or post tenancy Tasmania - Housing Managers in Tasmania will complete and serve claims forms through the Tasmanian Magistrates Court, which may assist in obtaining an order to rectify an outstanding debt. Claims forms can be lodged either during or post tenancy Queensland - Housing Managers in Queensland may apply to the Residential Tenancy Authority for conciliation in the first instance. The authority will determine whether conciliation is appropriate and may escalate the matter directly to the Queensland Civil and Administrative Tribunal (QCAT), which may grant an order to rectify an outstand debt either during or post tenancy. Payment plans entered into may be included as evidence in civil proceedings and Housing Managers may seek to formalise these plans through proceedings as per the Orders and Warrants Policy. Where a tenant does not voluntarily enter into a payment plan, civil proceedings may require them to enter into this plan. page 5

6 8 Responsibility and authority 8.1 Housing Managers Informing tenants of their rent and property care responsibilities Informing tenants of debts owing Working with tenants to repay debts owing Applying to appropriate state based authorities for conciliation and/or orders for payment where required Relaying evidence of outstanding debts to Mission Australia s legal services Recommending improvements to this policy and procedure. 8.2 Team Leaders/Regional Managers Incorporating this policy and procedure into staff inductions and training Ensuring staff are aware of and have access to this policy and procedure Providing guidance to Housing Managers implementing this policy and procedure Escalating feedback about this policy and procedure to the policy owner and/or policy writer. 8.3 National Operations Manager Authorising changes made to this policy and procedure Ensuring MAH complies with this policy and procedure. 9 Definitions Rent arrears: debt resulting from non-payment of an agreed rental amount. Non-rent debt: non-rent expenses incurred during tenancy. These include costs for property damage and/or cleaning, replacing keys, swipe cards or remote controls; and water usage charges. page 6

7 10 Debt Management Workflow Tool page 7