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The scheme is simply a legal agreement which provides the private landlord with a "promise to pay" rather than a normal deposit, against uninsurable damage or loss caused by the tenant, equivalent to a figure not exceeding one month's rent. It does not cover rent arrears.
Successful applicants must allow us to collect £2.50 each week direct from their housing benefit and then this money is held in an account. If we make a payment to a landlord we will use this money to cover our own loss. If the money held is less than this payment we will expect the applicant to pay the balance. However, if no damage is caused we will simply return this money when the tenancy comes to an end. If an applicant finds work and no longer qualifies for benefit we will still expect this sum to be paid, otherwise the agreement will be ended.
Each application is carefully assessed by a set procedure as follows:
Stage 1
This is where we explain who qualifies for the scheme and how it works. It is important that both parties know what to expect from the scheme and so we like to answer any questions that may arise.
Stage 2
This is where we make our assessment. We arrange to interview the applicant and decide whether they qualify for help under the scheme. To qualify, an applicant must be:
- homeless, threatened with losing their home or have a waiting list application with the Council, and,
- qualify for Income Support or Job Seekers Allowance, Housing Benefit, Family Credit or Council Tax Benefit,
- have a strong connection with the Babergh District,
- have no money for raising a deposit themselves,
- be capable of living independently in the community, and
- be renting a property within the Babergh District.
Applicants who are homeless due to avoidable rent arrears or where they were evicted for nuisance and/or anti-social behaviour may not qualify for help.
Landlords must also qualify to be included under the scheme. The following conditions must be met in all cases:
- landlords must make available the whole property. Rooms within a house are not acceptable,
- they must provide a legally binding tenancy agreement for at least six months,
- the accommodation must be suitable for the size of the household. In other words it must not be too large or too small,
- the rent must be within housing benefit levels and will be pleased to advise on the rent levels,
- the property must be in good repair and condition,
- the landlord must be free of conviction for Illegal Eviction or Harassment, and
- where the property is subject to a mortgage, the landlord must receive the permission of their lender to let their home.
Stage 3
Once the applicant and landlord have been accepted under the scheme, we refer the case to Flagship Housing Group who deal with cases on our behalf.
A Surveyor from Flagship will arrange to meet both the landlord and the tenant at the property. At this meeting they will:
- complete the standard tenancy agreement and other legal forms,
- witness the signing of the Bond Agreement (this explains in detail the legal responsibilities of each party), and
- compile the Schedule of Condition (this is simply a document which agrees the state of repair of the property and its contents).
Stage 4
The last part of the process is what happens at the end of the tenancy.
Once a landlord serves notice on their tenant they must inform us immediately. We will ask our surveyor to visit the property again and compile a Schedule of Dilapidation. This is similar to the process explained at Stage 3 and will allow us to see whether any damage has been caused to the property and/or its contents.
If we agree that the tenant has caused damage, we will arrange to pay the landlord up to the agreed amount within ten days of this visit. Any damage which is more than this amount will remain the responsibility of the tenant to settle with the landlord.
Any payment made to the Landlord must be repaid by the tenant in full. The Council reserves the right to commence legal action in the Courts if appropriate methods for repayment cannot be agreed. Any tenant whose actions result in a claim will not qualify for further help under the Scheme until the claim is settled in full.
If, however, no claim is payable, we will return your refundable deposit (up to the amount collected from your Housing Benefit).
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