News

11 February 2011

Derwentside Homes Recovers £200,000 in Rent Arrears

Derwentside Homes is celebrating the success of its ‘Pay to Stay’ rent arrears campaign after recovering a massive £200,000 debt that will now be invested back into tenants’ homes.

The social landlord has managed to dramatically reduce the scale of its unpaid rent which had climbed as high as £750,000 in 2008 by implementing a series of stringent measures.

Over the last two years, Derwentside Homes has placed an emphasis on helping tenants budget more effectively in order to prevent them from getting into debt in the first place.

Tenants have been supported by one to one contact in the early stages of their rent arrears and improved rent arrears procedures have offered a variety of methods in which to pay.

The following examples indicate how rent arrears have been reduced;

  • Derwentside Homes has invested in a preventative approach and rent arrears procedures to help tenants budget and keep on top of their payments
  • Barcodes have been issued on reminders to ensure payment can be made immediately – no longer waiting for tenants’ rent swipe cards to start payment
  • Improved staff training and increased personal contact
  • Referrals to an advice agency early in the recovery procedure so that tenants are given independent advice
  • Derwentside Homes is working with ‘Families First’ to support job opportunities and help financial management
  • Many tenants and staff have joined the Credit Union
  • A fun incentive encourage clear rent accounts has been the introduction of a quarterly prize draw of £100

Although the reduction in rent arrears is significant, Alan Tubman, the Tenancy Income Manager, reminds tenants that in order to provide services, all tenants must pay their rent on time.

Derwentside Homes will take action against debtors and since August 2008, 41 tenants have been evicted as a result of rent arrears.

He said: “We are delighted with our rent arrears reduction as despite such difficult economic conditions we have successfully managed to encourage more tenants to pay their rent on time.

“I appreciate that households are coming under incredible financial pressure due to the current economic climate and it can be difficult to meet standard living costs such as rent. I would advise tenants who are struggling to keep up with their payments not to wait for us to contact them.

“They shouldn’t ignore any letters and should always contact Derwentside Homes as soon as possible so that we can help.”

When Derwentside Homes launched its ‘Pay to Stay’ campaign in August 2008 tenants were reminded that the existing £750,000 in unpaid rent could have paid for hundreds of new roofs, doors, windows and kitchens.

Now, in order to continue to reduce rent arrears, Derwentside Homes is planning to launch another ‘Pay to Stay’ campaign while increasing the number of Direct Debit payment dates.

Plans are also in place to introduce on line access to rent accounts for Derwentside Homes’ customers.


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