For any business to survive, income recovery is key. Local authorities and housing associations need to know that rent lawfully charged for premises is paid on time. We all know this issue is fraught with difficulties and in particular those in respect of housing benefit delay.
There are ways of improving the position that can, when implemented:
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increase rental flow
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reduce expensive administration
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reduce Court action
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and save, where possible, the tenancy arrangement
We believe, in the first instance, tenancies should start on the right footing. "Sign up" should be dealt with at a senior level rather than a junior level. Tenants should fully understand what is to be asked of them, including their obligation either to pay their rent or to produce appropriate documentation to the Housing Benefit Department to ensure speedy processing of applications. Housing benefit is not the landlord's problem and that must be made known very early on.
There should also be a process in place whereby correspondence sent by the landlord is clear, plain and helpful. What point is there in sending "letter one" complaining of unpaid rent after two weeks when you know it is a housing benefit case and housing benefit is running four weeks in arrear? Did the letter achieve anything? If there is to be correspondence, it should be positive and directional. Tell your tenants where they can get help and assistance, including your own direct dial telephone number and details of a local Money Advice Centre or Citizens' Advice Bureau.
Insist, where possible, there is a face-to-face meeting with every tenant prior to the service of a notice of intention to seek possession. If you are able to communicate at an earlier stage, your tenant is unlikely to seek to avoid contact. If you both work together with a view to restoring rental payment, the situation can be saved. If there is a breakdown of communication between landlord and tenant, the situation is unlikely to improve.
There should be a link between repairs and rent. Why issue rent possession proceedings if there are outstanding repairs that are bound to attract a counterclaim? In addition, those receiving reports of repairs should check the rent card so that a housing officer dealing with income recovery can attend at the time the repair is being undertaken and speak to the tenant about the rent position.
These are just a few of the tips we know have proved successful and are essential to maintain rental income. We believe in addressing these issues in a positive and focused way, as a result of which litigation is avoided, tenancies are saved and void loss reduced.
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