Rent Collection policy

Transcription

1 Rent Collection policy 1. Scope 1.1 This policy outlines Peabody s approach to the collection of rent including service charges which are included within rental charges and sub-unit arrears. 1.2 It covers general needs social housing owned and managed by the Peabody Group, including sheltered and supported accommodation, social housing set at an affordable rent; market rent properties and intermediate market rent properties. It does not apply to leaseholders or shared owners. 1.3 Further information about rent setting is contained in the Social and Affordable Rent Setting Policy and the Intermediate and Market Rent Setting Policy. 1.4 This policy should be read and applied in conjunction with the Rent Collection Procedure. 2. Aims and Objectives 2.1 The efficient collection of rent and service charges enables us to invest in the maintenance of our homes. We will provide a range of payment options suitable to our tenants which maximise our rent and service charge collection rates whilst ensuring that we can sustain tenancies and support the most vulnerable. 2.2 We will work with tenants to address outstanding arrears and ensure that difficulties are resolved without court proceedings wherever possible. Our approach will remain focused on preventative action and early intervention to prevent the initial accrual of arrears. 3. Policy General approach 3.1 We will offer a range of payment and contact methods suitable to our tenants. This may include direct debit or standing order; payment card; Paypoint outlets; the Post Office; All Pay; reoccurring payments; and debit/credit card. 3.2 We will provide tenants with access to online rent statements, printed rent statements on request and debt advice in relation to their rent account. 3.3 We may use analytical and predictive techniques on the data we have on our residents to implement a variety of collection strategies.

2 3.4 We will conduct an Affordability Assessment on all new lets and relets to ensure prospective tenants who may be at risk of financial difficulty are offered the appropriate advice and are referred on for further support. 3.5 Our approach to rent collection will take account of our policy and procedures relating to the identification, assessment and recording of vulnerability. Where appropriate we will tailor our service to meet our residents needs and/or help them to access support. 3.6 We will provide welfare benefits and financial advice to tenants to help manage money and ensure they are claiming their entitlements. We may also refer tenants with unmet support needs to either internal care and support services or external provision. 3.7 Consideration will be given to the needs of an individual when we communicate with them. We will use a variety of contact methods to communicate with tenants; these include letters, s, telephone calls and home visits. Rent Collection & Repayment Plans 3.8 We will contact a tenant by phone if they accrue at least one week of rent or sub-unit arrears. If we fail to establish contact by phone we will follow-up by another appropriate method of communication. 3.9 We may agree a repayment plan with a tenant who is unable to repay their rent arrears in full, providing they disclose details of their income and expenditure. Our advice and engagement with individual tenants will be depend on their level of engagement with us We may decide to serve a tenant with the appropriate statutory notice before seeking possession if they fail to sufficiently address their rent We will attempt to contact a tenant in writing or by telephone once a notice has been served, and prior to applying to court for possession of a property, to address their rent arrears without court action We will try to work with the tenant to resolve any arrears which are the result of a problem in claiming Housing Benefit or Universal Credit, including verification of whether a claim has been made. We may also pursue other options, including applying for an Alternative Payment Arrangement and/or Managed Payment, where we believe the tenant s arrears are the result of vulnerability-related issues We will send the tenant a copy of pre-action protocol for possession claims after we have served notice and prior to applying to court for possession. Applying to court 3.14 We may apply to court for possession of a property if a tenant fails to sufficiently address their rent arrears once a notice has been served.

3 3.15 If contact is not made and/or the tenant makes no reasonable payments or fails to agree or adhere to a repayment agreement following five weeks of arrears a Pre- Notice of Seeking Possession Letter (PNSP) will be dispatched warning that we are considering serving a Notice of Seeking Possession to start possession proceedings and seek to establish contact with the tenant via phone or a face-to-face meeting We will write to a tenant to provide them with details of an impending court hearing relating to possession proceedings Possession proceedings for rent arrears will not be started against a tenant who can demonstrate that (s)he has; a) provided the local authority/department for Work and Pensions with all the evidence required to process a Housing Benefit claim/universal Credit claim; or b) paid other sums due not covered by Housing Benefit/Universal Credit We will consider whether a tenant who is particularly vulnerable has the mental capacity to understand legal proceedings if they do not, we will make an application for the appointment of a litigation friend If contact is made prior to the hearing and the Tenant makes a reasonable arrangement to pay by instalments and starts making payments as agreed, we may agree to adjourn court proceedings (either generally or for a fixed period) so long as the tenant keeps to such agreement We may apply for an adjourned hearing to be restored if a tenant fails to address their rent arrears If full payment of the arrears and legal costs is made by the tenant, we may write to the Court asking for the proceedings to be dismissed with an order for costs We will request the appropriate order at court depending on the circumstances of the case. Where appropriate, we will apply for, or enforce, the following at court in relation to outstanding rent arrears and court costs: a money judgement; an order for attachment of earnings; a charging order; a third party debt order; and a bankruptcy order We will write to a tenant to notify them of the outcome of a court hearing relating to possession proceedings. Possession 3.24 We will invite a tenant to a pre-eviction interview prior to executing a warrant of possession.

4 3.25 We may apply for a warrant of possession if a tenant continues to breach the terms of their court order or agreement We may execute a warrant of possession unless a tenant repays all of their arrears in full We may postpone possession proceedings if a tenant successfully makes a debt relief order, bankruptcy order or an individual voluntary arrangement We may seek possession of a property (based on the total amount of arrears owed) if a tenant accrues further arrears once a debt relief order, bankruptcy order or an individual voluntary arrangement has been agreed. Other 3.29 We may apply for a money judgement at court to recover arrears which accrue following a debt relief order, bankruptcy order or an individual voluntary arrangement being agreed We will transfer credit between a rent account and a sub-unit account to offset debt owed by a tenant we will notify a tenant in writing to confirm when credit has been transferred, and will issue remaining credit by BACS payment or by cheque when requested We will apply to the relevant deposit protection scheme at the end of a market or intermediate market rent tenancy to recover all or part of a deposit where there is damage to the property, missing items, cleaning required or unpaid rent We may terminate a licence agreement relating to a sub-unit if a tenant fails to address their arrears once the notice to quit is effective. 4. Monitoring and continuous improvement 4.1 This policy will be reviewed every 3 years unless legislation, business or sector developments require otherwise to ensure that it continues to meet the stated objectives and take account of good practice developments. Related Documents: Rent Collection Procedure Former Tenant Arrears Policy Rent Strategy Social and Affordable Rent Setting Policy Intermediate and Market Rent Setting Policy Vulnerable Persons Policy Corporate Debt Policy and Strategy

5 Approval Version number V1 Approved by Paul McGovern Approval date Effective from 04/18 Date of next review 04/21 Policy owner Richard Blakey (Director of Finance) Policy author James McHugh (Planning & Policy Manager) Consultation Housing Policy Group; Collections Managers Equality Impact Assessment (EIA) 02/18 Data Protection Assessment (DPIA) N/A Version control Date Author Version Details of review