Paying rent
How does the Association set the rent for assured tenants?
How does the Rent Service set the rent for secure tenants?
Can I appeal against the rent level set?
When do I pay a service charge?
Can I get help to pay the rent?
What should I do if I have difficulty in paying the rent?
Who sets my rent?
- This depends upon your type of tenancy. People who have become new tenants of Soho Housing Association after 15 January 1989 are almost always assured tenants and their rent is set by the Association. Tenants whose tenancy commenced before 15 January 1989 are secure tenants, whose rent is set by the Rent Service (a public employee completely independent of the Association which is now part of the Valuation Office Agency).
How does the Association set the rent for assured tenants?
- The Association’s rent setting policy, which has been agreed by our Board, is reviewed regularly. We are required to ensure that the rent covers our costs including mortgages, management, maintenance and a provision for future major repairs. We must also ensure that rents are set at levels within reach of those in low paid employment and that they take into account the size, age, features and location of the flat. We cannot take into account the individual financial circumstances of tenants. Assured rents are calculated according to recommendations by the Homes and Communities Agency. The tenancy agreement allows the Association to review the rent annually. Four weeks' notice must be given if your rent is being increased. The formula used by the Homes and Communities Agency (and formerly by the Housing Corporation) to calculate the recommended increase is RPI + 0.5% + £2. The Board took the decision to set a formula of 4.5% + 0.5% + £2 for the April 2009 increase - although the Homes and Communities Agency had recommended an increase of 5.5% (based on RPI in the autumn of 2008) + 0.5% + £2. The Board took the view that we needed to recognise the swift drop in the level of RPI since the previous autumn, while ensuring a steady level of income for the Association so we can continue to weather the current economic climate.
How does the Rent Service set the rent for secure tenants?
- After consultation with you, the Rent Service will set a rent considered to be a fair rent, taking into account the age, character and location of the property. They are guided by fair rents for similar accommodation in the area. They are to ignore the personal circumstances of both the Association and the tenant. Rents are assessed every two years. The Association must give you four weeks notice of any increase in rent and then charge the new fair rent. The Board have approved the setting of a "phased" rent increase for alternate years when no new fair rent has been registered. The Association can make a "phased" increase, provided this does not exceed the maximum amount stated in the previous year's rent registration. We are capping secure rents when they reach the level of assured rents.
Can I appeal against the rent level set?
- If you disagree with the rent set for your flat by either the Rent Service or the Association, you may appeal to the Rent Service - now part of the Valuation Office Agency. Their final decision is binding. www.voa.gov.uk
When do I pay a service charge?
If you have a tenancy where we provide extra services, your weekly rent will include a service charge. Services which may be included in your rent are:
- Cleaning of common parts
- Lighting of common parts
- Television aerials
- Entryphone
- Gardening
- Lift maintenance
- Caretaking / wardens
- Fire alarm systems
These are not all the services that may be provided - your own are written in your service charge schedule.
When should the rent be paid?
All rents are due weekly in advance each Monday.
If you wish, you may be able to pay your rent each calendar month. To calculate this, multiply your weekly rent by 52 (the number of weeks in the year). This will give you the total amount of rent due for one year. Then divide this sum by 12 to give you the amount of rent due each calendar month. If you pay this way, you must pay at the start of every month.
(Note: If you pay your rent every calendar month, it is important that you pay the correct amount, following the above calculation. Do not simply multiply the weekly rent by four. This will not give you your correct monthly rate, and your account will fall into rent arrears.)
Your account must always be in credit.
Who pays the water rates?
Tenants are normally responsible for paying water rates directs to the Thames Water Authority.
The Association may collect water rates on behalf of tenants living in blocks of flats with only one water meter. This will show on your service charge schedule.
Can I get help to pay the rent?
- Housing Benefit is the name of the Government’s scheme for helping people on low incomes meet the cost of rent. The scheme is complex, but the Association’s staff will be able to advise you whether you should make a claim to the local authority. Please contact us if you would like more information.
What should I do if I have difficulty in paying the rent?
The first thing to so if you have a problem in paying your rent is to contact the Association. Our staff are trained to help people who are having financial trouble. Please let us know if you have any difficulties and we will do our best to help. Don’t forget – you may be eligible for Housing Benefit.
Rent arrears
Your tenancy agreement includes an agreement to pay your rent every week in advance.
We need the rent from you and all residents on time, so that we can provide the best services possible.
If you are having problems paying your rent, contact our office immediately. Don’t put this off. It is very important that you discuss this with us before the arrears get too large. If you contact us we will always help you and look for some mutually acceptable arrangement to clear any debt - for example in instalments.
We want to help you resolve any problems with your rent as quickly as possible, so that they don’t get any worse. But please bear in mind that if you persistently fail to pay your rent on time, the Association will seek repossession of your home.
If you receive any letters about arrears, contact your Housing Officer immediately.
If you have any queries about your rent account, such as your current balance, please contact your team of Customer Service Officers.