A POLICY
1. It is the policy of KCHA to contain rent arrears at a low level in order to:
• Prevent tenants losing their home through eviction
• Help tenants maximise their income and prevent them getting into financial
difficulty
• Maximise the Association’s rental income
2. The Association’s Housing Management and Maintenance Sub-Committee will
recommend, and the Board of Management agree, annual rent arrears targets.
3. A range of convenient and flexible rent payment methods will be provided to
maximise the opportunities for tenants to pay their rent and to suit individual
needs.
4. Clear and understandable information will be provided to tenants about:
• The amount of rent payable
• Methods of rent payment
• The current position on their rent account
• KCHA’s policy and procedures on rent arrears
• Advice on what to do if they are having difficulties paying the rent
• Advice on housing benefit and other welfare benefits
5. Action to deal with rent arrears will be taken at the earliest possible stage. The
Association will take a sympathetic but firm and consistent approach.
6. Where initial action to contain and reduce a debt is not successful, court
proceedings will be instigate. As a last resort, if no other solution is possible,
eviction shall be requested.
B PROCEDURE
7. Definition
7.1 Rent is due fortnightly in advance, or as set out in the Tenancy Agreement.
A tenant who has not paid rent by the close of business on a Monday (or
the following working day if Monday is a public holiday) is technically in
arrears.
7.2 Tenants should therefore be requested to make arrangements to pay their
rent in advance. This is particularly important for tenants who pay monthly,
for example, by standing order.
8. Information to Tenants
8.1 Quarterly statements will be sent to all tenants showing the current position
on their rent account.
8.2 Up to date information on current housing and other welfare benefits will
be displayed in Central Office reception, and will be made available to
tenants as appropriate (for example through regular mailings to tenants).
9. Action at the Beginning of a Tenancy
9.1 When a new tenant signs up for his or her tenancy, advice should be given
about the payment of rent and benefits available.
9.2 A provisional assessment should be made of the tenant’s possible housing
benefit entitlement (if any). Housing benefit and council tax rebate forms
should be provided and the tenant helped to ensure completion. Care
should be taken to ensure that the necessary supporting evidence is
provided, for example on proof of earnings.
9.3 The tenant should be encouraged wherever possible to agree to payment
of housing benefit direct to the Association. As benefit is usually paid four
weekly in arrears, the tenant should be asked to pay an additional amount,
in addition to any shortfall, to bring their account gradually 2 weeks in
advance in accordance with the terms of their Tenancy Agreement. It is
accepted that because housing benefit is paid four weekly in arrears, there
may be two weeks owing at any time before the housing benefit payment
is due.
9.4 The tenant should be encouraged to deliver his or her application in person
and obtain a receipt for it
9.5 The Housing Services Manager (HSM) will review any service level
agreement with the housing benefit sections that we deal with to agree
service standards, liaison arrangements, and monitoring and review
procedures. The Housing Officer (HO) / HSM will have regular liaison with
each local authority to make sure the tenants receive a good benefits
service.
9.6 A visit will be carried out to all new tenants after two months to find out
whether the tenant is having any difficulties paying the rent and to deal
with other housing management issues. The standard New Tenant Visit
Form will be completed, and there are significant rent arrears the Rent
Arrears Interview Form will also be completed.
10 Initial Recovery Action
10.1 Early action is essential to ensure that the tenant is aware of any arrears
and the importance of keeping his or her account up to date, and to enable
him or her to deal with any problem before it escalates beyond easy
remedy.
10.2 Written records should be kept of any action taken at each stage of the
recovery process, including notes of all telephone conversations,
interviews and visits. The note facility on QLX will be updated at all stages.
10.3 Standard letters are available to be sent to tenants at key ‘trigger’ points in
the arrears process. These may be adapted to suit individual tenants’
circumstances.
10.4 At one week arrears standard letter AR1 should be sent to the tenant.
10.5 If there is no response from the tenant and the account shows 2 weeks
arrears standard letter AR2 should be sent to the tenant, together with 2
copies of the Rent Arrears Payment Agreement form allowing for the
arrears to be cleared by regular instalments.
10.6 If there is still no response a visit should be made to the tenant (or
arrangements made to interview the tenant in the office). Standard letter
AR3 should be sent to the tenant advising that we are considering issuing
Notice of Seeking Possession (NOSP) if they do not respond.
11. Visit to Tenant/Office Interview
11.1 The purpose of the tenant visit/office interview is to undertake an in-depth
discussion of the reason for any arrears, to ensure that the tenant is
maximising his or her income, and to negotiate arrangements for
repayment of the arrears.
11.2 The Rent Arrears Interview Form should be completed to ensure that the
following points are covered:
• Household composition
• Total household earnings/income
• Total outgoings (including other debts etc.)
• Eligibility for, and take up of, benefits
• Net disposable income
• Reasonable and realistic instalment payments to clear arrears in the
minimum time possible
11.3 If further specialist welfare benefits or debt counselling advice is required
the tenant should be referred to outside agencies (in accordance with
arrangements agreed with those agencies).
11.4 By the end of the visit/interview (or within a short period afterwards if
further information needs to be obtained) instalment payments to clear the
arrears should be agreed and a Rent Arrears Payment Agreement form
completed. The agreement details should be noted on QLX notes.
12 Issue of Notice of Seeking Possession
12.1 If, despite all efforts, there is still no evidence that the tenant is attempting
to reduce the debt, by the time the account is six weeks in arrears a
Notice of Seeking Possession (NOSP) should be issued with a covering
letter (standard letter AR4). Each case must be considered on it’s merit.
The HSM or in his or her absence the Chief Executive (CE) are to make
the decision.
12.2 There are limited circumstances under which it may not be appropriate or
advisable to issue a NOSP to issue a NOSP at this level of arrears.
Examples are:
• The tenant (or a household member) is elderly, disabled, has a serious
health problem or is otherwise vulnerable
• The tenant is withholding rent because of an alleged disrepair or
otherwise counter claiming
• There is an unresolved marriage or partnership dispute
• There is an outstanding housing benefit claim confirmed by the
Housing Benefit Section in writing
12.3 It is important that the NOSP is accurately prepared and properly served.
12.4 When preparing the NOSP care must be taken that the correct Housing
Act and Grounds are used.
For Secure Tenants the Housing Act 1985 should be used along with
Ground 1 of Schedule 2.
For Assured Tenants the Housing Act 1988 should be used along with
Ground/s 10 (rent arrears), and 11 (breach of tenancy). Consideration
must be given as to whether it is appropriate to use Ground 8 (8 weeks
arrears at service of NOSP) or Ground 11 (persistent arrears) in certain
circumstances. It should be noted that Ground 8 grants automatic
possession even if there are no arrears at the time of the court hearing and
care should therefore be taken before using this Ground. The HSM will
make the decision whether to use Grounds 8 or 11.
12.5 The NOSP should be served by hand on the tenant and a Record of
Service of Notice form completed and placed on file along with two copies
of the NOSP.
13. Court Action
13.1 After service of NOSP the tenant’s rent account must be carefully
monitored.
13.2 If there is no proposal to clear or reduce the arrears, and by 8 weeks
arrears the Housing Officer will institute possession proceedings, having
discussed the case with the HSM. Standard letter AR5 should be sent to
the tenant.
13.3 The Court will give a time and date for the hearing. The HO will issue
standard letter AR6 to the tenant, giving details. The tenant should be
encouraged to attend the hearing.
13.4 If the tenant has failed to make satisfactory payments, or does not appear
at the Court hearing, an outright Possession Order should be sought. If an
outright Possession Order is granted standard letter AR7a should be sent
to the tenant.
13.5 Unless there are other considerations, where some reasonable proportion
of the arrears has been paid and/or the tenant appears in court, a
possession order should be requested suspended on the agreement of the
tenant to pay current rent plus an amount towards the arrears. If a
suspended Possession Order is granted standard letter AR7 should be
sent to the tenant.
13.6 If possession is granted, costs should be requested, assessed by the
Judge or Registrar, which should be added to the arrears. This is usually
the cost of making the application and is in the region of £120.00.
14 Eviction
14.1 If the tenant does not comply with the terms of a suspended possession
order standard letter AR8 should be sent to the tenant. This will advise the
tenant that the account must be brought back into line with the terms of the
possession order.
If the account is not brought back into line with the terms of the Order
within a short space of time, a Bailiff’s Warrant to enforce the possession
order and evict the tenant should be applied for. Standard letter AR9
should be sent to the tenant.
14.2 In the case of an outright Possession Order if the tenant has not vacated
the property by the date given a Bailiff’s Warrant to enforce the Order
should be applied for.
14.3 Eviction must be authorised by a meeting of either the Association’s Board
of Management or Housing Management and Maintenance Sub-
Committee, or by the Chairpersons of both Committees. An Authority to
Evict report must be completed by the HSM and submitted for
authorisation.
14.4 If arrears and costs are paid in full by the tenant before or by the eviction
date the eviction should be cancelled.
14.5 If the eviction takes place, the HO and/or HSM should attend with the
Court Bailiff to execute the Warrant. A carpenter should also be present to
change the locks and secure the property, and the presence of police and
other welfare representatives (for example, from Social Services or the
RSPCA) may be requested if problems are anticipated.
14.6 After the eviction has been carried out and the property secured, the
evicted tenant may be allowed to return to remove possessions, but control
of access must remain with the Association’s officers. At no time should
the tenant be allowed to return to the property without being accompanied
by the HO.
15 Former Tenant Balances
15.1 Every reasonable effort should be made to recover former tenant arrears.
15.2 Where a forwarding address is known, the former tenant should be
contacted and an attempt should be made to recover the debt or negotiate
an agreement to pay by instalments. A Rent Arrears Agreement may be
drawn up based on the current arrears model.
15.3 Where no forwarding address is given, efforts may be made to trace the
tenant via relatives, friends or other agencies. In reality, however, there is
usually little prospect of tracing the whereabouts of former tenants who
have left behind significant debts.
15.4 Where the whereabouts of a former tenant are known, it may be possible
to take legal action to obtain a money judgement in the court. Unless the
prospects of success are high and the former tenant has the financial
means to satisfy a court judgement, however, it would be a waste of further
time and money to pursue such a course of action.
15.5 A record of each former tenant debt and all recovery action taken should
be kept on the former tenant file.
15.6 When it has been decided that a former tenant debt is not recoverable, or
is beyond economic recovery, it should be referred for write-off.
15.7 The Chief Executive may authorise write-off of former tenant debts up to
£500, but these should be reported to the next meeting of the Housing
Management and Maintenance Sub Committee. Debts over £500 must be
referred to the Housing Management and Maintenance Sub Committee for
authorisation for write-off.
15.8 The same basic procedure, including authorisation limits, applies to former
tenant credit balances.
15.9 A register should be kept of all former tenants bad debts, and all
applications for housing to the Association should be checked against this
register. Consideration will be given to sharing this information with the
local authority and other registered social landlords.
