What is 'rental arrears' and how does it impact your tenancy?
Rental arrears occur when a resident has not paid their rent in full past the due date.
To maintain registration as a Community Housing Provider CWH is required to ensure that rent outstanding as a percentage of total potential rent is not greater than 2.5%. We also rely on rent to cover the cost of our operations, including maintenance. This is why it is important to us that residents keep their accounts in advance. Another reason is that having your rent in arrears puts your tenancy at risk.
CWH and their housing coordinators work hard to encourage and support residents to sustain tenancies including being a point of referral to services.
What happens when you go into arrears?
When a rental account is identified as in arrears, the first steps of the tenancy coordinator is to contact the resident and discuss the circumstances that have led to the arrears.
If the entire outstanding amount cannot be paid promptly, an informal rental agreement will be brokered between the resident and their coordinator, signed by the resident.
If the resident does not make the agreed repayments, they then are in breach of their informal agreement. CWH will then apply to Tribunal for a formal repayment plan (also called a Specific Performance Order) or they will apply for termination of tenancy. This will be based on the payment history of the resident and specific circumstances.
If the Specific Performance Order is also breached, then CWH will apply to Tribunal to terminate with the tenancy.
CWH understands that living in a secure environment allows people to flourish in education, employment, relationships and health.
This is why CWH encourages residents to maintain an open relationship with their coordinator where we can provide early support and advice to ensure residents do not fall into arrears and put their tenancy at risk.