H O M E F I N D E R An Introductory Guide for Landlords

Transcription

1 H O M E F I N D E R An Introductory Guide for Landlords The Homefinder Scheme was introduced by Colchester Borough Council as a homelessness prevention scheme for local families who are homeless through no fault of their own. It aims to develop sustainable tenancies between local landlords and residents. The scheme promotes many benefits to landlords and is operated FREE of charge! This guide contains information on all aspects of the scheme including its many benefits and our safeguarding practices which are designed to give you maximum peace of mind. We will provide you with details regarding our assessment process, in house tenancy procedures and on-going tenancy management support. We will also explain the monetary aspects of the scheme and how we intend to overcome perceived risks. BENEFITS OF THE HOMEFINDER SCHEME Supply of Tenants Due to the high demand for private sector accommodation within the Colchester Borough, the scheme is able to offer a steady supply of tenants. Any tenants who are eligible for the scheme would have passed our robust assessment process and you will be able to decide which tenants you accept. Provision of Tenancy Documentation If you require us to do so, we can provide you with all the necessary tenancy documentation. This includes the initial tenancy agreement, inventory, rent account template and notices if so required. Deposit Protection We provide a deposit equivalent to one month s rent. Although the funds are not directly transferred to you it helps avoid the administration related to Government Tenancy Deposit Schemes. Our tenancy finalisation tends to be quicker and less complicated than that of the Government schemes and money for tenant damage and repairs is therefore more easily accessible. Rent in Advance and Fast Tracked Housing Benefit Claims Housing benefit is paid to the landlord in arrears every four weeks and we will therefore pay the first months rent on the tenant s behalf while their housing benefit application is processed. This means that on receipt of each housing benefit payment you will have an excess of one months rent throughout the tenancy. Furthermore, this excess is only repayable minus any arrears at the end of the tenancy. Due to our close working relationship with the housing benefit department, we can also organise for your payments to be fast tracked. Even if your tenant is not entitled to Housing Benefit we will still cover the first months rent. Direct Rent Payments For tenants who are in receipt of housing benefit we can arrange for the payments to be paid directly to you, thus avoiding the risk of tenants incurring rent arrears. When floating support is offered to tenants this can also help reduce the risk. Specialist Tenancy Management Support Although you will be the initial point of contact for the tenant in relation to any maintenance or general tenancy queries our skilled housing advisers will be available to offer you advice when you need it. We work closely with other Council departments and supporting agencies and are able to encourage the tenant to abide by the terms of the tenancy agreement. In some instances tenants are offered floating support which helps empower them to manage and maintain their tenancy.

2 Energy Performance Certificates (EPC) As a result of recent legislation, all rental properties require an EPC by law. If you do not have an EPC or if it is due to expire, we are able to organise for one to be provided for your property at no cost. Direct Communication with the Housing Team You will be able to contact our team directly when required; telephone numbers and contact information is available at the end of this guide. We have a dedicated address which will provide you with a single point of contact. Landlord Consultation As part of our continued commitment to improving our landlord services, we arrange a variety of events, forums and focus groups. Most recently we have undertaken a landlord survey with the aim of identifying what landlords want and are already planning further improvements to our services. Discounted Memberships We work in partnership with the Eastern Landlords Association who offer dedicated services to landlords including an advice line, discounted insurance and a host of informational events. Our Homefinder landlords are entitled to a discounted membership of only 50 for the first year. Membership of such organisations can prove a vital tool throughout tenancy management. HOW TENANTS ARE ASSESSED Our robust processes ensure that only tenants who have been deemed able to successfully sustain a long term tenancy are eligible. Our process involves an initial one hour consultation with the applicant followed by a three to four week investigation period during which the applicant s situation is assessed. The investigating officer will assess the applicant on five criterion in line with Homelessness Legislation; eligibility, cause for homelessness, priority need, intentionality and local connection. Amongst many others, they will look through bank statements to confirm income and expenditure, conduct an Experian credit check to look for CCJs and obtain a statement from the previous landlord if applicable. These investigations enable us to scrutinise an applicant s circumstances and assess their level of risk. If any risk factors are identified including but not limited to current of historic deliberate rent arrears, property damage and anti-social behaviour, then the applicant will not be accepted onto the scheme. The underlying purpose of the Homefinder scheme is to develop sustainable tenancies and we are therefore cautious not to set our clients up to fail. We are committed to building sustainable relationships with our landlords and it is therefore in our interest to ensure we minimise tenant related risks.

3 MONEY MATTERS A recent survey undertaken by Colchester Borough Council supported the following as the main risks of letting a property according to local landlords: Non Payment of Rent Damage by Tenants Problems with Housing Benefit and the Local Housing Allowance Non Payment of Rent It is important to note that paying the rent is always the responsibility of the tenant, whether it is paid by earnings, housing benefit or by any other means. To minimise the risk of non payment of rent, an important aspect of our assessment process involves considering the reason for homelessness. As mentioned, if this relates to eviction due to previous rent arrears we will not accept the applicant onto the scheme. We are able to encourage the tenants to prioritise their rent payments as failure to do so will jeopardise any future help from Colchester Borough Council. During the decision process we will carefully consider the affordability for the applicant, taking into account their housing benefit entitlement (when applicable) and any other income or expenditure. It is important to remember that applicants who are in full time employment might still be eligible for housing benefit and also that not all applicants accepted by the scheme are in receipt of it. Additionally, we can arrange for any housing benefit entitlement to be paid directly into your account, further minimising your risk. On some occasions tenants will be allowed to top-up their rent by a maximum of 25 per month. Obviously, any non-payment of this top-up will put the tenant s rent account into arrears. Although we will make every effort to resolve any nonpayments as soon as possible, arrears can be refunded to you at the end of the tenancy from the rent in advance if necessary. Damage by Tenants You are entitled to request that tenants pay a dilapidations/security deposit to protect your property against any intentional damage or excessive wear and tear. You may also wish to take out additional insurance or confirm your buildings and contents cover. If the applicants have enquired via your letting agency, we will pay a dilapidations deposit to the value of one months rent. It is then the responsibility of your agent or yourself (depending on the terms of your agreement) to ensure the deposit is protected correctly with a Government approved tenancy deposit scheme. Please note: if the deposit is paid to your letting agency then Colchester Borough Council should be listed as the Lead Tenant. If you have chosen to become a valued member of Homefinder, we will guarantee a deposit of the same value in the form of a bond. Although this means that the deposit will not be paid directly to you, it avoids the administration work related to the Government deposit schemes. We have a dedicated officer to process tenancy finalisations to ensure that you are credited fairly for any damage caused as a result of the tenancy. We are therefore able to offer an efficient service to ensure reimbursement is as hassle free as possible. Note: You will need to have returned a signed inventory for any deposit claim to be valid.

4 Problems with Housing Benefit and the Local Housing Allowance We are aware that a further worry to landlords involves the payment of housing benefit and its relationship to the Local Housing Allowance (LHA). Housing benefit entitlement reflects the local housing allowance which is a flat rate allowance based on the size and area of your property; further information can be found at Dependent upon individual circumstances we may on occasions consider applicants for properties with a rent higher than the LHA. Although we understand your concerns we believe the savings available from the FREE services we provide positively outweigh these issues. For example, on average you will pay a 10% monthly management commission to a local agency together with an initial tenant find fee of approximately 70% of the first months rent. Using an average rent figure of 700, letting through Homefinder could save you over 1300 per year! Extra Security and Repayment of the Rent in Advance It is important to note that housing benefit is paid directly to the landlord in arrears every four weeks, not per calendar month; there are thirteen four weekly periods in twelve months. Therefore, the rent in advance is paid to you in lieu of the first housing benefit payment. This means that once the tenants housing benefit application has been processed, you would have received two payments covering the first months rent (remember it is paid in arrears) and therefore would have been overpaid. We do not request that this overpayment is returned to us until the end of the tenancy so it can act as a buffer. Moreover, only the amount minus any rent arrears, or any credit balance above the total rent due figure, needs to be returned. TENANCY PROCEDURES Tenancy Sign Ups Once you have chosen to take advantage of the Homefinder scheme, we will arrange for a member of our team to visit your property and assess it in line with health and safety requirements i.e. trip hazards, damp, fitted hand rails etc. This does not constitute a formal inspection but is designed to ensure the property meets the required health and safety standards. Following this, we will add your property details to our database immediately and cross match the details with our current list of tenants. We will contact you and advise you of any suitable matches and pass on all relevant information so you can make an informed decision as to whether or not to proceed with a tenancy. You are under no obligation to accept tenants if you feel they are not suitable. Once you have accepted a tenant, we will ask you to arrange a viewing of the property with them. This is a great opportunity for you to meet with them in person. You will then be required to arrange a convenient appointment with a member of our housing team to visit us and sign the necessary tenancy documentation. Note: All of our tenancies are designed to be long term and are for an initial 12 month period. We will arrange for payment of the rent in advance into your account and forward the necessary bank details to our housing benefit department (where applicable) for fast track payment. PLEASE ENSURE YOU HAVE READ AND UNDERSTOOD THE TERMS OF THE HOMEFINDER AGREEMENT PRIOR TO SIGNING.

5 Using a Letting Agency If you are using a letting agency we will arrange for the rent in advance and security deposit to be paid to the agent. Please make sure your agent is aware that the deposit we pay is equal to the sum of one months rent. The tenant will be given copies of the Homefinder agreement which must be signed by both the landlord and the agent before these funds can be released. Where the tenant is in receipt of housing benefit, your agent will be required to complete the necessary landlord payments form. Please ensure the deposit is logged with a Government approved scheme and that the lead tenant is Colchester Borough Council. Inventories You should arrange for a detailed written inventory of contents and schedule of condition to be carried out. The inventory should list all items in the property together with the condition. We are able to provide you with a template to use if necessary. You may also wish to take photos or conduct a video inventory to provide a visual record of condition. The inventory should be signed and agreed by the landlord and the tenant. The tenants should be able to comment on the inventory if there is an item they do not agree with so you may wish to arrange a convenient appointment to go through it together. A copy of the signed inventory should also be returned to Colchester Borough Council for our records. Note: Failure to return a signed inventory will invalidate any claim for damages. The inventory is a vital document as it proves an invaluable tool at the end of the tenancy. The inventory can be used to prove any damage or excessive wear and tear caused as a result of the tenancy and this makes it easier for us to reimburse you. Rent Accounts It is vital that you maintain clear and concise rent accounts throughout the tenancy, detailing monies which are due and those you have received. Failure to provide a copy of a clear and concise rent account will invalidate any claim for rent arrears. Alternatively, if you were to issue a section 8 notice on the basis of rent arrears you would need to make this account accessible to the courts. Additionally, you may be required to pay income tax on your rental income depending on circumstances and you will therefore need to be able to provide such records to your accountant or the Inland Revenue. We can provide you with a template if necessary. Note: You should keep records of all expenditure relating to the property as it is likely these will fall under allowable expenses for tax purposes. TENANCY MANAGEMENT Maintenance You will be responsible for maintenance and repairs of the property and will need to ensure that heating and hot water systems, sanitary fittings, appliances and the gas and the electricity supplies are in good working order and safe for use. If there are any aspects of the property you will not maintain such as kitchen appliances for example, this will need to be noted on the inventory and signed by both parties. You will be the tenant s first point of contact for any maintenance related queries and you will be responsible for arranging works as necessary. However, if you require additional advice we will be more than happy to assist you.

6 Inspections At regular intervals throughout the tenancy we strongly recommend that you arrange an appointment with the tenant to inspect the property. This does not need to be a formal inspection but enables you to check that the property is being maintained in a tenant like manner and that the tenants are settled. Tenants are more likely to remain in the property for a longer period if this is the case and stronger landlordtenant relationships will develop. If you feel there are any issues which have been raised as a result of the inspection you should arrange to revisit the property within the following four weeks to see if these have been resolved. If however, the tenants have not acted upon your instructions you can contact a member of our team who will be happy to offer further advice and contact the tenant where appropriate. We will be able to refer you to relevant departments if necessary. Renewals After the initial 12 months has expired we would be hopeful that both parties wished to renew the tenancy for a further 12 months. In this instance we would prepare all of the necessary documentation and arrange an appointment for signing. If you did not want to commit to a further 12 month tenancy we would suggest that the tenancy proceeded to a periodic tenancy (month by month). No new documentation would be necessary. If however, you chose not to continue with the tenancy, you would need to issue the relevant section notices in line with the Housing Act 2004 (as amended). It is extremely important that these notices are issued in the correct manner with the correct dates and information. We would therefore recommend that you seek advice before issuing notices personally to ensure they are valid. We can offer you initial assistance if needed. End of Tenancy We will liaise with you and the tenant towards the end of the tenancy to arrange a tenancy end date and organise the tenancy finalisation. We will visit the property when the tenant vacates to inspect for any damage or excessive wear and tear. The written inventory and any photos taken at the beginning of the tenancy will be used for comparison and it is therefore vital that this document is accurate and kept up-to-date. For example, if you have given the tenants permission to add blinds to the windows an amendment should be made to the inventory and signed. Once we have compiled an agreed list of deposit deductions we will arrange for the required reimbursements to be made to you from the deposit guaranteed. Repayment of the first month s rent As mentioned previously, where tenants are in receipt of housing benefit you would have received two payments for the first months rent. This overpayment is due to be returned to us at the end of the tenancy. However, where there are rent arrears only the amount minus the arrears needs to be returned. Please see the tenancy management support services listed at the end of this guide for details of other agencies which may be of interest to you.

7 PREPARING YOUR PROPERTY Our housing advisors will be able to ensure you are aware of your responsibilities as a landlord and will be able to provide guidance on preparing your property. In short however, you should ensure compliance with the following: Gas Safety In accordance with the Gas Safety (Installation and Use) Regulations 1998 all gas appliances, fittings and flues must be checked for safety within 12 months of installation and annually thereafter. All works involving gas must be undertaken by a suitably qualified gas registered engineer. We will require a copy of a current gas safety (CP12) certificate prior to tenancy commencement. Electrical Safety In accordance with the Electrical Equipment (Safety) Regulations 1994 all electrical equipment supplied must be safe and carry the correct CE symbol. A fixed wiring test should be carried out every five years and a visual inspection undertaken at the changeover of a tenancy in case it has been tampered with. Additionally, it is recommended that portable appliance testing is undertaken every 12 months. Unlike gas regulations, there is no legal requirement for landlords to undertake these checks. However, you are legally obliged to ensure they are safe and we therefore strongly recommend that regular testing is carried out for your protection. Furniture and Furnishings In accordance with the Furniture and Furnishings (Fire) (Safety) Regulations 1988 (as amended) all furniture and furnishings supplied must meet the required match/cigarette tests and display the appropriate symbol (a green square/triangle with a cigarette). Any furniture purchased after the 1 st March 1990 should generally meet with these requirements. However, we would recommend that you remove all items of furniture and any personal items from the property prior to letting, leaving in place carpets where appropriate. Fire You will need to ensure that you have taken adequate precautions in relation to fire safety. You should install wherever possible mains powered smoke alarms on each floor although a 10 year sealed battery operated detector or wireless linked system will suffice if necessary. You should also ensure there is an adequate escape route from the property in case of fire. Energy Performance Certificate (EPC) You will need to obtain an Energy Performance Certificate for your property prior to the tenancy. This is in accordance with the Energy Performance of Buildings (Certificates and Inspections) (England and Wales) Regulations 2007 and the Housing Act 2004 (as amended) (in relation to the EU Directive 2002). An EPC provides information on the energy efficiency and CO2 rating of your property and provides recommendations for improvements. The document is valid for 10 years. General Condition In addition to the above responsibilities, we would recommend that you obtain written permission from your mortgage company and insurance providers to let your property. We would also recommend that you ensure the property is thoroughly cleaned and in good decorative order at the beginning of the tenancy as this will help you make the necessary deductions from security deposits and therefore maintain the standard of your property throughout tenancies.

8 What to Expect As a landlord you can expect your tenants to pay their rent and look after the property. All Homefinder tenants would have been advised that paying their rent is their top priority. Tenants will be aware of the risk of eviction for failure to pay their rent and that they will jeopardise any further help from Colchester Borough Council. The tenant s ability to afford the rent would have been scrutinised by our team and you will be informed of any top-up payments which have been agreed prior to tenancy. Even in the best run tenancies problems with arrears or repairs can crop up. However, our team will always be on hand to offer advice or assistance when necessary. Housing Options Contacts USEFUL CONTACT NUMBERS Initial Landlord Enquiries Tanya Roerig Tenancy Sign Up (inc. viewings) Christine Sewell Tenancy Management Support Enquires David Jarman Tenancy Finalisations and Deposit Enquiries Sara Turner Address homefinder.landlord@colchester.gov.uk Other Useful Contacts Council Tax General Customer Services Environmental and Protective Services (EPS) Housing Benefit Queries (benefit.landlord@colchester.gov.uk) WE LOOK FORWARD TO WORKING WITH YOU!

9 TENANCY MANAGEMENT SUPPORT SERVICES LANDLORD ASSOCIATIONS If you are a landlord and you have a problem with your tenant, whether this relates to non payment of rent or any other breach of the tenants obligations under the tenancy agreement, then being a member of a landlords association can be an invaluable tool. There are three main associations operating within Colchester: Eastern Landlords Association National Landlords Association Residential Landlord Association In general, landlord associations offer you support and advice on all aspects of residential letting and housing law and provide regular updates relating to the property industry and changes to relevant legislation. They are therefore well equipped to resolve your tenancy queries. Additionally, landlord associations usually offer you representation at a Government level meaning that your views are heard and enabling you to influence Government Policy. Further details of each association can be found below. Eastern Landlords Association: Telephone helpline providing advice on all aspects of residential letting and housing law Providing a voice for members views at a ministerial level due to their affiliation with the British Property Federation Regular bi-monthly meetings held across the area which can be attended for free which provide a great opportunity to network with other landlords and guest speakers Seminars and training sessions held on a regular basis relating to a variety of issues affecting landlords Regular newsletters and updates High quality website with members only access to tenancy documentation including agreements, notices and letter templates. Subsidiary online letting agency offering property advertisement and tenant referencing Specialist landlord insurance together with free cover for tax investigations and legal defence Commercial deals available with national suppliers of goods and services including finance providers, as well as local offers from gas engineers, green deal advisors and other tradesmen Annual subscription fee of with a one of joining fee of 15.00; note, landlords are entitled to a discount of the subscription fees if using Colchester Borough Councils Homefinder scheme. Further information is available from the ELA at by phone on or in writing to Suite A, St Francis House, Queens Road, Norwich, NR1 3PN or info@easternlandlords.org.uk

10 National Landlords Association: 24/7 access to their online library of information and resources Telephone advice line for immediate issues Bi-monthly subscription to the UK Landlord magazine Discounted rates on attendance based landlord development Attendance at local, regional and national landlord meetings providing networking opportunities with other landlords and guest speakers Access to the NLA accreditation scheme to help you stand out as a professional landlord and related use of their logo and marketing materials Discounted rates and cash back on a range of residential letting services such as energy performance certificates, tenancy referencing and insurance Free tax investigation insurance Representing members views at a local, national and European level Annual subscription fees start at and discounts are available depending on payment terms Further information is available from the NLA at or by phone on or in writing to Albert Embankment, London SE1 7TJ or info@landlords.org.uk Residential Landlords Association: Access to the RLA s deposit protection scheme, DepositGuard, with free registration and deposit protection from just 15 Comprehensive website with members only access Telephone advice line on all issues relation to residential letting and housing law 24/7 access to the online members help desk for all enquiries Provision of necessary tenancy documentation including tenancy agreements, application forms and notices. They are also able to provide court forms if needed Leaflets and guides relating to property safety, legislation and landlord responsibilities Regular updates via and via the bi-monthly magazine; Residential Property Investor In house training courses and seminars Discounted rates on related services such as insurance, mortgages and inventories Property advertisement via their online letting agency Access to landlord software to allow you to effectively manage all parts of your property portfolio Representation at local, national and Government level Further information is available from the RLA at or by phone on or in writing to 1 Roebuck Lane, Sale, Manchester, M33 7SY or info@rla.org.uk

11 USEFUL CONTACT DETAILS As a landlord you may also wish to be aware of the following services to facilitate the smooth running of your tenancy and to enable you to resolve possible issues which may arise during tenancy management. Colchester s Citizens Advice Bureau (CAB) The Citizens Advice Bureau provides free, independent, confidential and impartial advice to all residents on their rights and responsibilities. It may be useful to your tenants if they need advice on debt o welfare issues for example. They are open from 9.30 until 4pm weekdays on a drop in service at Blackburn House. 32 Crouch Street, Colchester, CO3 3HH. Alternatively, their helpdesk can be contacted on One Support: Essex Floating Support Service One Support provides support to people aged 16 and over living in the district of Colchester. They can help your tenants address challenges they are facing with everyday tasks such as managing their money, managing their tenancy, gaining life skills and accessing education and training. They can be contacted via phone on or in writing to 7 St Peters Court, Colchester, CO1 1WD or essexfss@onehousinggroup.co.uk. Direct Gov Direct Gov is the Government run website which provides information on a range of topics. As a landlord they are able to provide you with comprehensive high quality written advice on relevant issues. Your tenants may also be able to make use of this advice service with regards to benefit queries, council tax enquiries and such like. Visit for further information. Colchester Borough Council Colchester Borough Council are able to advise you and your tenants on issues such as benefit entitlement, council tax, environmental policies and housing matters among many others. Tenants have access to our online benefit calculator and landlords have access to our dedicated landlord pages. For council tax and benefit please contact the revenues team via phone on or in writing to benefit.landlord@colchester.gov.uk or to Rowan House, 33 Sheepen Road, Colchester, Essex, CO3 3WG. For housing enquiries please contact the housing options team on or in writing to housing.options@colchester.gov.uk or visit Angel Court on the High Street to speak to a housing triage officer. A full list of contact details for all CBC services can be found online at or by calling our customer service centre on