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

Transcription

1 Policy Document Arrears Management Policy section: 1.0 Policy: Section name: Establishing and Maintaining Tenancies Document name Arrears 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 Workflow Tool Purpose To provide guidance on the Mission Australia Housing (MAH) rent arrears management processes. To minimise risk of terminations resulting from unpaid tenant rent and other bills associated with a tenancy whilst maintaining the financial viability of MAH. Arrears Management, v.3 Policy Mission Australia Housing

2 2 Related policies 2.1 This policy is to be read in conjunction with the: Rent and Rebate Policy, which outlines requirements for staff who assess the income and assets of tenants and their household in order to set their rent, as well as responsibilities of tenants with regard to income assessment and payment of rent Referrals to Agencies Policy, which details the approach taken by MAH in assisting applicants and tenants with specific needs or tenancy management issues to establish connections to support services Debt Management Policy, which details the processes undertaken by MAH for managing non-rent arrears debts such as property damage. 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 responsibility to pay rent in advance and are supported to avoid arrears wherever possible. Early intervention assists tenants to manage arrears and mitigate associated risks to their tenancy. Tenants are provided with support and tools in order to assist them to manage their tenancy and their financial obligations to MAH. Tenants are given opportunities to appeal organisational decisions in order to ensure fair and transparent outcomes. 5 Policy Staff will inform tenants of their responsibility to pay rent in advance wherever new tenancies commence and throughout tenancies, in order to encourage tenants to comply with their lease or rooming accommodation agreement. Tenants will be in breach of their agreement where they fail to pay rent due to MAH and staff will be required to take action under residential tenancy and rooming accommodation legislation. page 2

3 Staff will work with tenants as soon as evidence of arrears is identified in order to ensure repayments do not become unmanageable for them. Where appropriate, staff will assist tenants to connect with services that may help them to manage their financial obligations to MAH as per the Referral to Agencies Policy. Tenants may be required to enter into a payment plan where they owe arrears or experience difficulty rectifying their arrears. Staff will pursue a range of options, including but not limited to civil proceedings, to recover costs where tenants refuse to rectify arrears or vacate their property without paying their arrears. Staff will inform tenants of their right to complain about services of MAH and/or appeal organisational decisions as per the Appeals and Complaints Policy. Staff will store all correspondence to tenants relating to rental arrears in the tenancy management system. 6 Procedures These procedures should be read in conjunction with the Debt Management Policy and Arrears Management Workflow Tool at section 10 of this policy. 6.1 Identifying rent arrears Housing staff will monitor tenant arrears on a daily basis via the tenancy management system. 6.2 Rectifying rent arrears Organisational framework Housing staff may, at their discretion, apply the following procedure in order to rectify tenant rent arrears, or apply the alternative procedure under legislative framework. The following procedure is recommended for use where a tenant becomes in arrears for reasons beyond their control and/or has had no previous history of arrears. It provides more scope for housing staff to work with a tenant over time in order to rectify any arrears they owe MAH and wherever possible sustain their tenancy. Rent arrears less than five days Where tenants are in arrears of between one and five days, Housing Managers will establish contact to remind them to pay their rent. Housing Managers will first attempt to contact the tenant via telephone or sms. Housing Managers will send the tenant a reminder letter outlining their responsibilities where they are not able to be contacted by phone. Housing Managers will then monitor their account for evidence of rectified arrears. page 3

4 Rent arrears between five and 14 days Where tenants are in arrears of between five and 14 days, Housing Managers will take action under residential tenancy and rooming accommodation legislation in order to rectify matters. Housing Managers will send a letter of warning for breach of tenancy. The letter will include details of relevant financial advisory services. Housing Managers will, wherever possible, follow up with a telephone call to explain the warning letter and requirements to prevent further action from occurring. Housing Managers will then monitor their account for evidence of rectified arrears. Rental arrears of 14 or more days Where tenants are in arrears of 14 or more days: Housing Managers will send a notice to end the tenancy. This notice will include an up to date rent statement and encourage the tenant to contact MAH in order to discuss options for rectifying their arrears. Housing Managers will attempt to contact the tenant by telephone to discuss the notice and payment options Housing Managers will attend the property to discuss matters where the tenant cannot be reached by telephone Where a tenant refuses to enter into a payment plan or does not comply with a payment plan entered into, Housing Managers will apply to have the matter heard by the relevant state based civil authority and, wherever possible, obtain an order to rectify the situation as per the Orders and Warrants Policy. Where a tenant has repeatedly failed to rectify arrears, Housing Managers may seek approval from the National Operations Manager to pursue additional orders, including ending the tenancy as per the Ending Tenancies Policy Housing Managers will pursue other recovery options where appropriate. Refer to the Debt Management Policy for detailed guidance on entering into payment plans; making applications for orders for payment within specific state jurisdictions; and other recovery processes that may assist in rectifying non-rent debts and arrears owing to MAH. 6.3 Record keeping Housing Managers will store in the tenancy management system: Details of phone conversations about arrears Correspondence to/from tenants relating to arrears Payment plans Orders made in civil proceedings Records of other arrears recovery processes pursued where applicable. page 4

5 7 State and program based variations 7.1 Legislative framework Where a tenant has had ongoing issues rectifying their rental arrears and/or has not adhered to a payment plan they have entered into, staff may refer to and apply the below legislative timeframes and processes. Process Timeframe to rectify arrears NSW Tasmania Queensland (general tenancy) Issue a notice of breach Issue a notice of Issue a notice to remedy of tenancy breach of duty breach Tenant will have 14 Tenant will have Tenants will have seven days to pay their 14 days to pay days plus postage to pay arrears before they are their arrears their arrears before they issued with a before they are are issued with a notice termination notice. issued with a to leave. Tenants will be Staff may apply to the notice to vacate. required to vacate their New South Wales Civil They will then be property within seven and Administrative required to vacate days of receiving this Tribunal (NCAT) once their property notice or apply to the the termination notice within 14 days of Queensland Civil and expires in order to receiving this Administrative Tribunal have the tenancy notice if they do to have the matter terminated not rectify their heard arrears before the notice to vacate expires Queensland (rooming accommodation) Issue a notice to remedy breach Tenants who have lived in their property for under 28 days will be required to pay their arrears within two days of receiving this notice plus postage. Tenants who have lived in their property for over 28 days will be required to pay their arrears within four days of receiving this notice plus postage. Tenants may be issued with a notice to leave, effective immediately where they have not paid their arrears when a notice to remedy breach for arrears expires 7.2 Forms and notice Staff in Queensland only will be required to ensure that they use the correct form and Residential Tenancy Authority (RTA) process where they issue notice to a tenant. Forms will vary depending on whether they are directed to a tenant in a general tenancy or tenant in a rooming accommodation agreement. 8 Responsibility and authority 8.1 Housing Managers Informing tenants of their responsibility to pay rent and other tenant charges such as water usage Informing tenants of arrears owing Working with tenants to rectify arrears Applying for orders where required Recommending improvements to this policy and procedure. page 5

6 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 Ensuring different approaches are trialled to rectify arrears prior to terminating a tenancy Reviewing arrears data and identifying key performance areas for improvement Escalating feedback about this policy and procedure to the policy owner and/or policy writer. 8.3 National Operations Manager Supporting Team Leaders to minimise and prevent arrears Authorising changes 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. Staff should refer to the Debt Management Policy where they are required to manage debt resulting from other causes, such as property damage caused by a tenant. page 6

7 10 Workflow Tool Arrears Management Work Flow Tool DAY 1-5 SMS & Phone Call to tenant & Issue Rent Arrears Letter DAY SMS & Phone Call to tenant - Issue Termination Notice Warning Letter Letter 1 Letter 2 DAY Set up repayment plan - Issue repayment plan letter Letter 4 - Issue rayment plan contract Outcome of hearing received (2-3 weeks after hearing) - Issue hearing outcome letter Letter 6 DAY 1 DAY 7 DAY 14 DAY 20 DAY 30 DAY 40 DAY 50 DAY 14 - SMS & Phone Call to tenant - Issue Termination Notice - Send Termination Notice Letter Letter 3 DAY 30 - SMS & Phone call to tenant - Issue Rent Arrears letter Letter 5 - Application to state based civil authority for a hearing - -Review repayment plan page 7