Technical Notes 2023, Issue 121 - Pre-Tenancy Rent Advice

1. The purpose of this Technical Note is to provide Elected Members with an update on the new pre tenancy initiative, where rent advice is now provided to housing applicants who have been offered and then accepted a new tenancy.   
2. In January 2023, the Housing Service introduced a new proactive pre tenancy initiative to promote new tenancy sustainment, along with assisting with the alleviation of early new tenancy rent arrears.
3. As part of the role of a part time Housing Officer within the rents team, an applicant who has been offered and accepted a new tenancy from East Dunbartonshire Council, is contacted, within days of acceptance, to discuss the rent charge for their property, affordability and payment options. The Housing Officer is also able to provide advice and support in relation to applying for benefits, where applicable, and promotes a preferred rental payment option for Direct Debit to applicants who will be personally paying rent.
4. Once the tenancy is ready and at the sign-up stage, there is then a follow up by the Housing Officer with the new tenant to ensure that rent is prioritised and paid and/or that benefits have been applied for, such as Universal Credit -housing costs which cannot be requested until the tenancy commences.
5. During the first 6 months of this initiative, there were 115 referrals for the Housing Officer to make contact with, while 112 applicants were engaging as part of the process, representing a 97.4% take up. *From the applicants who engaged, have since been signed up and their tenancy has reach 1 month, rent is being covered for 87.2% of these new tenants, with delays in payments to rent account due to awaiting payments from Universal Credit for the remaining 12.8%
6. In terms of applicants who engaged, there has been a total of 21 new tenancies where their tenancies have now reached 3 months with payments being compliant by the vast majority. Rent is now being fully covered for 20 of these tenants, with no rent arrears accrued.  Advice and support is being provided to the remaining tenant, as there has been exceptional circumstances, which delayed them submitting a Universal Credit application timeously when their tenancy started.
7. From the three applicants who did not engage with the Housing Officer, all have since started their tenancies. Rent is being fully covered by Universal Credit for only one of these tenants, while rent arrears procedures are being applied, with advice and assistance also offered, in an attempt to address the arrears for the other two new tenants.
8. The pre tenancy rent advice has been welcomed by the applicants, some of which are now tenants, as it has assisted them plan for their new tenancy and fully understand their responsibility to prioritise their rent. In addition, it is anticipated that this early engagement advice and support will encourage new tenants to engage with Housing Services, at a later date, should their personal circumstances change and if they struggle to meet their rent liability.
9. This initiative also assists the Housing Service to maximise rental income and reduce rent arrears. Rent arrears are currently £1,234.953, which is £125,018 less than at the same period as last year, week 16.

*Based on 47 new tenancies starting and reaching for a period of 1 month.