Staff Guide to Rent and Service Charges April 2008
1. The Income Team 2. Rent Reform & Convergence 3. Rent Increase 4. Garage Rent Increase & VAT on Garages 5. Service Charges Increase 6. Heating Charges & Increase [all increases will come into effect on 7 April 2008] 7. View Accounts Charge Details Current Revenue Account 8. View Account Charge Details Void Properties 9. Write Off of Former Tenant Arrears 10. Rent Cards/Swipe Cards 11. Rent Free Weeks 12. Rent Statements on line access 13. Payment Engine 14. Direct Debits 15. Tenant Contents Insurance 16. Payment Methods 17. Incentives 18. Re-chargeable Works Accounts Appendices Rent Increase Letter Rent Card 2008/2009 Garage Rent Card 2008/2009 Rent Free Week/Tenant Contents Insurance Letter [sent out with rent card]
1. The Income Team first floor YHN House Anne Crute Income Manager 278 8651 Martin Baylis Assistant Income Manager [temp] 211 6610 Neil Emery Debt Recovery Manager 278 8576 Colin Green Senior Income Officer 278 8659 Controls Team 278 8644 Dave Potter Assistant Income Officer 278 8654 Colin Gray Credit Control Officer 278 8654 Ian Pirie Rent Assessment Officer 278 8653 Susan Wright Income Assistant 211 6611 Coleen Sanderson Income Assistant 211 6611 Rachael Legg Admin Assistant 278 8653 Email control@yhn.org.uk Accounts Team 278 7749 Ian Millican Area Income Officer 278 8657 Anne Fahy Area Income Officer [temp] 278 8657 Alan Hathaway Income Assistant [temp] 278 8657 Sally Horn Income Assistant [job share] 211 6612 Jinette Hately Income Assistant [job share] 211 6612 Lauren Edwards Income Assistant [temp] 211 6612 Email accounts@yhn.org.uk Payments Team Brenda Greaves Area Income Officer 278 8658 Julie Hannon Income Assistant 278 8658 Jonathon Wright Income Assistant [temp] 278 8656 Email payments@yhn.org.uk Debt Recovery Team 278 8757 Sandra Oldham Debt Recovery Officer [temp] 211 6617 Angela Henderson Debt Recovery Assistant 211 6614 David Harris Debt Recovery Assistant 278 8659 Andy Cartwright Debt Recovery Assistant 278 8652 Matthew Creighton Debt Recovery Assistant [temp] 211 6616 Paul Wright Admin Assistant 211 6613 Daniel Dunsford Admin Assistant [temp] 211 6615 Email debt.recovery@yhn.org.uk
2. Rent Reform & Convergence We increase rents & service charges using the Governments Guidelines on Rent Reform & Convergence. Target Rent Each property has a target rent which we should be charging by 2016 [this is shown as a property element in the Northgate system] The target rent is calculated using the property valuation [at April 1999], the number of bedrooms, [both shown as property elements in Northgate system] the national average rent, the national average valuation and average local earnings. The national average rent, the national average valuation and average local earnings are determined by the government. The target rent is increased each year by a % determined by the government. Convergence [movement to target rent] We compare the basic rent for the property and the target rent and divide the difference by the number of years left to 2016 [this year its 9] This is added to or taken away from the basic rent. 3. Rent Increase We have increased the current basic rents by 4.4%, and compared it to the target rents for 2007-2008. Including the movement to target rent [convergence] the rents have been increased by an average of 3.03 [5.9%]. The Government only allows us to increase individual rents by a maximum of 4.4% plus 2. The rent increase letter will have been delivered to all tenants by 7 March 2008, a copy is attached. 4. Garage Rent Increase & VAT on Garages Garage Rent Increase The basic garage rent has been increased by 5.9%. The standard 49 week [see section 11. Rent Free Weeks] payable rent will be 7.44, including VAT 8.74 will be payable. Vehicle in curtilage charges will also be increased by 5.9% The garage rents for tenants eligible for Disabled Persons Garage Allowance will be increased by 1.45; they will pay 3.06 per week over 49 weeks. If liable for VAT 3.60 will be payable.
VAT on Garages Value Added Tax regulations state that VAT at 17.5% is payable on garages rented by Newcastle City Council to: Non council tenants Council tenants who do not live in the neighbourhood where the garage is situated Anyone living in a property rented from Newcastle City Council but not the named tenant is also liable to pay VAT. A client element [see 5 Service Charges Increase] will be used in the Northgate system to charge VAT. At sign up the Housing Services Officer or Housing Services Assistant must determine if the tenant will be liable for VAT and inform the Accounts Team accordingly [by email]. 5. Service Charges Increase The following service charges have been increased by 4.4% Furniture Concierge Resident Concierge TV Aerial Warden LA Security Alarm Maintenance There has been no increase in Supporting People charges or subsidy. Wardens SP Community Care Alarms Charges in the Northgate System have been divided into two categories Property Charges charges that are attached to the property o Basic Rent o Concierge o TV Aerial o Resident Concierge o Security Alarm Maintenance o Heating Infrastructure, Energy & Communal o Fully Furnished o Vehicle in Curtilage o Warden LA o Warden SP
o Water Charges [from 2007/08 only properties that share a communal water meter e.g. sheltered block will have this charge] Client Charges charges made for services provided to individual tenants o Furniture o Community Care Alarm o Garden Care [eligible for housing benefit] o Garden Care Pay [not eligible for housing benefit] o Tenant Contents Insurance o Concessionary TV Licence o Disabled Persons Garage Allowance o VAT on garages The client elements end when the tenancy is terminated. 6. Heating Charges & Increase The way we charge for heating was reviewed in 2006/07. Instead of having a heating charge and a communal heating charge it was separated into three components [all property elements in the Northgate System] Infrastructure Energy o The charge for the staff employed in the operation and day to day running of the system & boiler. [The District & Group Repairs & Servicing Team] o The charge for the amount of energy used. The cost of this will be determined by the floor area of the property. There are 7 price bands from 30 to 90 square metres Communal o The contribution towards the cost of heating communal areas Heating Charge Increase Heating charges have been increased by: Infrastructure 4.4% Energy 5% Communal 4.4% Any allowance given to minimise the increase in energy charges, has been reduced by 1 this year.
7. View Account Charges Current Revenue Account You can view account charges on a current revenue account in the Rents Module Revenue Accounts Workspace Search for account, highlight Link to Account Charge Details Rent by date tab Show rent on click to show required date Click on box to right with green tick The information at the top of the page shows the current information, the rent by date tab can show future and previous charges.
8. View Account Charges Void Property You can also access the property charges from the Estates module. Properties Workspace Search for property, highlight Link to Account Charge Details Rent Elements tab Query element by date click to show required date Click on box to right with green tick This can be used at sign up to tell new tenants what the charges for the property are and also their payment reference number.
9. Write Off of Former Tenant Arrears During March 2008 we have written off just over 236k of former tenant arrears. This has been agreed by YHN Finance Committee and NCC Executive. These arrears can be resurrected at a later date. An example of this is if a former tenant with arrears wishing to register for Your Choice Homes, they would be unable to do so unless their arrears were repaid. During 2007/2008 we have resurrected 406k of previously written off arrears. You can view the detail of an account in the Rents Module Revenue Accounts Workspace Search for account Link to Revenue Account Detail Click on the balanced tab
The transactions shown: BBF [balance brought forward] the transaction used to bring the information from the mainframe system WOFF [write off] the transaction used to write off the outstanding arrears This account shows that the former tenant owes 165.84 although the arrears have previously been written off. If you inform the Debt Recovery Team they will arrange for the arrears to be written back on using a WON [write on] transaction. You must also check for any linked accounts as they will have similar transactions. Revenue Accounts Workspace Search for account Click on Tcy Acc [Tenancy Accounts Details]
Click on Rent Acc [Revenue Account Details]
This account has been used to demonstrate the search process and does not show BBF or WOFF transactions.
10. Rent Cards/Swipe Cards Rent Cards The format of the rent card used in 2007/2008 will be used again this year. The charges shown on the rent card are the 49 week payable amounts less any Housing Benefit or Supporting People Subsidy. Tenants should receive their cards by 7 April 2008. A wallet which will be large enough to hold a rent card, swipe card and receipts can be issued at sign up. Every office should have a supply of wallets to be issued to new tenants, contact the Accounts Team for further supplies. At sign up, use the Property Charge Details Screen to complete the attached Rent Charges 2008/2009 and insert into wallet. The Northgate System will be set up to enable the name, address and payable rent to be printed onto a blank rent card. This will be printed then posted out by the Income Team once the revenue account has been created. A copy rent card is attached. We have separate cards for Rent [yellow], Garage Rent [green], Heating Only Accounts [blue] and Re-chargeable Works [pink]. Swipe Cards Swipe cards are ordered by the Accounts Team when the rent account is created. Every Monday and Thursday a file is sent to the company who produces our swipe cards, they produce and post out cards within 3 working days. To ensure that the card is received within the first week of tenancy, the tenancy and rent account must be created by the Friday prior to tenancy start date. Tenants who use Post Office or Paypoint get a credit card style receipt. This will also be the same for anyone using the Customer Service Centres or YHN offices [these receipts will show the customers reference number, amount paid and their balance]. The Accounts Team can order swipe cards for any current tenant, the Debt Recovery Team for former tenants. You can contact them via email accounts@yhn.org.uk or debt.recovery@yhn.org.uk [please do not use yhn-income@yhn.org.uk] 11. Rent Free Weeks An additional rent free week has been added from April 2008. The rent free weeks for 2008/2009 will be: Week 38-22 December 2008 Week 39-29 December 2008 Week 52-30 March 2009
12. Rent Statements on line access We currently send out rent statements at the end of every quarter. From April 2008 customers will be able to log into our web site and view their account on line. Further information will be sent out when this is launched. 13. Payment Engine Payment Engine is the name for the systems used to collect income which includes the cash receipting system and the bank reconciliation systems used by Newcastle City Council. It also enables us to collect income via the telephone and the internet. If you have any queries regarding Payment Engine please contact Dave Potter who is the YHN representative on the User Group. Any changes to the set up of Payment Engine for YHN need to be agreed and authorised by Anne Crute as YHN Senior User. 14. Direct Debits Direct Debits are set up and managed by the Payments Team. Since October 2006 we have input all new direct debits on to the Northgate system. During 2007/2008 the 2000 direct debits on our original system have been transferred to Northgate. As well as the 5 th and 20 th of the month we now offer weekly direct debits, every Friday for rent and rent arrears cases only If there is an existing payment method of Direct Debit please do not input an arrangement without first contacting the Payments Team. This can affect the way in which the Northgate system collects payment and we may not receive the amount expected. It is also important not to update an existing Direct Debit arrangement as this will also affect the amount collected. If you have any queries contact the Payments Team. 15. Tenant Contents Insurance Scheme During 2007/2008 we have reviewed the Tenant Contents Insurance scheme. A full procurement exercise was carried out with YHN Finance Procurement Team and the Northern Housing Consortium. Although the insurance company [Royal Sun Alliance] and broker [Marsh] will remain the same we have signed up for the Simple Scheme. This will offer tenants a wider range of levels for standard cover and options to insure for full accidental damage, personal belongings, wheelchairs and hearing aids The new premiums will be charged from 7 April 2008 [tenants have been informed see appendices] further information will be sent out to staff and tenants during April/May 2008.
16. Payment Methods There are a number of ways to pay rent and/or other debt owing to YHN. In Person YHN Community Housing Office in Benwell [opening times: Monday, Tuesday, Thursday and Friday 8.30am 4.30pm, Wednesday 8.30am 3pm] The Walker Centre [opening times Monday Friday 8.30am 4.30pm] Newcastle City Council Customer Service Centres o Civic Centre o Outer West [Denton Park Shopping Centre] o East End [Shield Road, Byker] o Kenton [Hillsview Avenue] o Gosforth [Regent Centre] by cash or cheque at any Post Office using a swipe card by cash at any Paypoint outlet using a swipe card Through the Bank by Direct Debit o The calculations and arrangements to collect payments will be made by the Payments Team by Standing Order o The Payments Team can assist with the calculation of payments Over the Telephone Automated Telephone Payments o telephone number 0845 111 4199 o follow instructions [option 3, currently housing rents we have asked for this to be changed to YHN Payments ] o using a debit or credit card Contact Centre [Payment Line] o telephone - extension 27208 o staff must ensure when transferring call that they have the customer s reference number and amount they wish to pay Web Staff o YHN staff can have access web staff o take payments using debit or credit card By Post to: Newcastle City Council City Treasurer Civic Centre Newcastle upon Tyne NE99 2PT
Internet Customers can log on to Newcastle City Council or YHN s web site to make their rent, garage rent, leasehold or re-chargeable works payment. [option 3, currently housing rents we have asked for this to be changed to YHN Payments ] 17. Incentives We have incentive schemes to encourage tenants to pay by a cost effective payment method and have a clear rent account. This was an Audit Commission recommendation. To put the cost of these schemes into context 1600 per year will be paid in prizes. The rent & service charges debit for 2008/2009 will be more than 90 million. We will also save money by using the Direct Debit scheme & could reduce outstanding arrears by encouraging tenants to clear their accounts by the date of the next draw. Scheme 1 Direct Debit Payers o Customers who pay by direct debit will by included in a monthly draw for a cash prize of 50 Scheme 2 Tenants with Clear Rent Accounts o At the end of every quarter [weeks 13,26,39 & 52] customers who have a cleared all outstanding balances will be included in a draw for a cash prize of 250 These schemes will be initially set up for rent customers but will be expanded to include all YHN Customers [leaseholders, community care alarm service etc.] All Community Housing Offices and NCC Customer Service Centres should now have posters and flyers advertising the incentive scheme. 18. Re Chargeable Work Accounts The Income Team create these accounts in the Northgate system, they are separate sundry party accounts with account type RWK. Their payment reference numbers are similar to rent accounts but they begin with 90. You can search these accounts in the Northgate system by payment reference number or using revenue accounts search and party address tab. [see next page] We can set up Direct Debits for these accounts. During April/May 2008 we will: send out Re-chargeable Work Cards 2008/2009 transfer arrears collection to the Debt Recovery Team
<Tenants name> <Tenants postal address> John P Lee, Chief Executive Your Homes Newcastle YHN House, Benton Park Road, Newcastle upon Tyne Tel: 0191 2788644 Fax: 0191 2788603 Web: www.yhn.org.uk E-mail : income@yhn.org.uk Our Ref: JPL/AC 08/09 This matter is being dealt with by Ian Pirie, telephone 0191 278 8644 28 February 2008 Dear <Tenants name> Notice of Rent and Service Charges Increase The City Council has agreed to increase Council house rents from 7 April 2008 by an average of 3.03 [5.9%] per week. The increase is in line with that recommended by the Government s guidelines. At this level it enables the Council to maximise the amount of Government Subsidy to the City for investment in the housing service. Whilst individual rents will rise by different amounts the Council has agreed that no individual tenant will face an increase of more than 4.4% of existing rent charges plus 2 per week. Charges for the services of Concierge, Resident Concierge, TV Aerial, Garden Care, Wardens LA, Security Alarm Maintenance, Communal Heating, Heating Infrastructure and Furniture will increase in April by 4.4%. The Heating Energy charge will increase by 5%. Charges for tenants who have a garage or parking space within the boundary of their property will be raised by 5.9%. There will be no increase in the Supporting People service charges for Wardens and Community Care Alarms. In accordance with Clause 2(b) of your Tenancy Agreement notice is now given that these charges will come into effect on 7 April 2008. Details of your new rent and service charges are shown overleaf.
Service charges eligible for Housing Benefit:- Basic Rent Resident Concierge Concierge Furniture TV Aerial Security Alarm Maintenance Attached Garage/Parking Space Wardens Landlord charge Heating Infrastructure charge Heating Communal charge Garden Care Service charges eligible for Supporting People Subsidy:- Community Care Alarm Wardens SP charge 52 week charge 52 week charge Service Charges not eligible for Housing Benefit or Supporting People Subsidy:- Heating Energy charge Garden Care [Payable] 52 week charge Housing Benefit If at the time of this rent increase you are already in receipt of housing benefit, the full amount of the eligible increase will be met by an addition to the amount of benefit you receive. If you do not currently receive housing benefit but think that you may qualify, application forms are available from your local Community Housing Office or Customer Service Centre. Rent Free Weeks From April 2008 the number of rent free weeks has been increased to three. This gives you two rent free weeks at Christmas and one rent free week at the end of March. Full details of the amount you need to pay will be shown on your rent card which you will receive by 6 April 2008. Yours sincerely John P Lee Chief Executive Your Homes Newcastle
Delivering Housing Services to you on behalf of: <tenants name> <Office Name> <1 st line address> <1 st line address> <2 nd line address> <2 nd Line address> <3 rd Line address> <post code> <post code> <telephone number> Rent Card 2008/2009 Web: www.yhn.org.uk E-mail: xxxxxx@xxx.xxx.xx Your Homes Newcastle is the name of the Arms Length Management Organisation which has been created by Newcastle City Council to take forward the housing management responsibility for the housing stock. Both you as a tenant and Newcastle City Council as landlord have rights and responsibilities which are contained in your tenancy handbook. If you wish to give up your tenancy you must give at least four weeks written notice ending on a Monday. Please address this to your local Community Housing Office. Payment Reference Number <Payment Reference Number> 49 week payable charges Charges Eligible for Housing Benefit Basic Rent Security Alarm Maintenance TV Aerial Concierge Charge Resident Concierge Charge Attached Garage/Parking Space Heating Infrastructure Charge Heating - Communal Wardens LA Furniture Charge Garden Care Management Fee Charges Eligible for Supporting People Subsidy Charges to be paid in full Wardens SP Community Care Alarm Heating Energy Charge Tenants Contents Insurance Concessionary TV Licence Garden Care Water Authority Charges Total Charges Less Housing Benefit entitlement Less Supporting People subsidy Less Other Allowances Total Payable
Useful Telephone Numbers: Automated Telephone Payments 0845 111 4199 Direct Debit Queries 0191 278 7749 Housing Benefit 0845 111 4101 Repaircall 0845 113 8888 Envirocall 0191 274 4000 Gas Leaks 0800 111 999 Your Choice Homes 0191 277 2020 Civic Centre Switch Board 0191 232 8520 Tenants Contents Insurance Scheme: Claims Queries 0845 671 8171 Policy Queries 0845 070 0693 Premium Queries 0191 278 8644 Your rent is calculated over 49 weeks. If your account is up to date, this gives you three rent free weeks, two at Christmas and one at the end of March [see calendar*]. If your account is in arrears you should continue making your normal payment during these weeks. If for any reason you are finding it difficult to pay your rent contact your local Community Housing Office immediately. We can ensure that you receive confidential advice and support. 2008/2009 Rents Calendar Week Number Week Commencing Monday Week Number Week Commencing Monday 1 April 7 27 October 6 2 14 28 13 3 21 29 20 4 28 30 27 5 May 5 31 November 3 6 12 32 10 7 19 33 17 8 26 34 24 9 June 2 35 December 1 10 9 36 8 11 16 37 15 12 23 38* 22* 13 30 39* 29* 14 July 7 40 January 5 15 14 41 12 16 21 42 19 17 28 43 26 18 August 4 44 February 2 19 11 45 9 20 18 46 16 21 25 47 23 22 September 1 48 March 2 23 8 49 9 24 15 50 16 25 22 51 23 26 29 52* 30* * Rent free weeks if your account is up to date
Delivering Housing Services to you on behalf of: <tenants name> <Office Name> <1 st line address> <1 st line address> <2 nd line address> <2 nd Line address> <3 rd Line address> <post code> <post code> <telephone number> Garage Address <address of garage> Web: www.yhn.org.uk E-mail: xxxxxx@xxx.xxx.xx Garage Card 2008/2009 Payment Reference Number <Payment Reference Number> 49 week payable charges Garage Rent <GAR_BLOCK> Disabled Persons Garage Allowance <DPG_ALLOW> Total Charge <SUM> VAT Total Payable 2008/2009 Rents Calendar Week Number Week Commencing Monday Week Number Week Commencing Monday 1 April 7 27 October 6 2 14 28 13 3 21 29 20 4 28 30 27 5 May 5 31 November 3 6 12 32 10 7 19 33 17 8 26 34 24 9 June 2 35 December 1 10 9 36 8 11 16 37 15 12 23 38* 22* 13 30 39* 29* 14 July 7 40 January 5 15 14 41 12 16 21 42 19 17 28 43 26 18 August 4 44 February 2 19 11 45 9 20 18 46 16 21 25 47 23 22 September 1 48 March 2 23 8 49 9 24 15 50 16 25 22 51 23 26 29 52* 30* <GAR_VAT> <SUM TOTAL & VAT> * Rent free weeks if your account is in arrears you should continue to make your normal payment during these weeks
Useful Telephone Numbers Automated Telephone Payments 0845 111 4199 Direct Debit Queries 0191 278 7749 Conditions of tenancy for Garages 1. Rents are due in advance on Monday of each week. The gross rent, payable for 49 weeks in this year of 52 weeks, is shown on the front of this card. VAT must be added onto the garage rent if: The garage is allocated to a non tenant The applicant does not live in the neighbourhood where the garage is situated The applicant is using the garage for business or commercial use It is the tenant s responsibility to see that the rent is paid regularly when due. In the case of arrears of rent the council reserves the right to serve Notice to Quit on the garage. The tenancy is to be terminated by one week s notice to be given in writing by either side before 12 noon on a Monday. 2. The tenant shall: a. Only use the garage for the storage of a motor vehicle unless permission has been granted by the Housing Service Manager for alternative use. b. Keep the garage in clean and proper condition, in good repair and free from vermin. Give the duly authorised officers, agents and workmen of the Council all reasonable facilities for entering upon the premises for the purpose of inspection of the garage or adjoining garages and for carrying out such work as may be deemed necessary in respect thereof. c. Repay the Council the cost of: i. Repairing any damage done to the premises, fixtures or landlords fittings (other than fair wear and tear), caused by the act or default of the tenant; ii. Clearing stoppages in drains due to misuse or negligence. 3. The tenant shall not: a. Keep fowl, pigeons or animals on the premises unless specially authorised. b. Assign, sub-let or part with possession of the premises or any part thereof without the written consent of the Housing Service Manager. c. Use the premises for any trade or business. d. Do or permit to be done on the premises anything which in the opinion of the Housing Service Manager may be a nuisance or annoyance to or in any way interfere with the quiet and comfort of the occupants of the adjoining premises or the neighbourhood. 4. The tenants shall not, without the previous written permission of the Housing Service Manager: a. Make any alterations or additions to the premises or to any apparatus or fittings installed therein. b. Carry out any external painting. c. Fit or display on or outside the premises any radio or television aerial. 5. Any tenant who in the opinion of the Housing Service Manager shall neglect to observe these regulations or misuse or improperly occupy a garage shall be subject to one week s notice to quit, expiring at any time without remedy of any kind on account of such notice and the Council shall not be responsible for any damage arising there from.
John P Lee, Chief Executive Your Homes Newcastle Income Section YHN House, Benton Park Road Newcastle upon Tyne, NE7 7LX Tel: 0191 278 8644 Fax: 0191 278 8603 Web: www.yhn.org.uk E-Mail income@yhn.org.uk Our Ref: AC/0809/RC Your Ref: This matter is being dealt with by Anne Crute 25 March 2008 Rent Card 2008-2009 Please find enclosed your rent card for 2008-2009. It shows the amount that you need to pay each week. From April 2008 there will be three free rent weeks, two at Christmas and one at the end of March. The dates of these are shown on your rent card. Tenants Insurance Scheme From 7 April 2008 the Tenants Insurance Scheme is being improved. Many premiums are being reduced and the new amounts are shown on your rent card. We will also be able to offer:- A wider range of levels for standard cover You will also have options to insure for:- Full accidental damage Personal belongings Wheelchairs Hearing Aids Full details of the new scheme will be sent to you shortly. If you are currently on the scheme you need do nothing for the time being your cover remains the same as at present. Once we have sent you details of the new scheme you may wish to update your level of cover or choose to take advantage of some of the additional options. Yours Faithfully Anne Crute Income Manager