Bosses at Chorley Community Housing (CCH) say they are about to take a much stronger approach to collecting rent. The organisation that manages the town’s former council houses have just announced it is owed over £400,000 in rent arrears.
Housing chiefs have released data which shows that around half of the 1,500 tenants who live in their properties which are protected with buy to let insurance are now in arrears. A Rent Collection and Arrears Recovery Team has been set up and their remit will be to encourage tenants who are in arrears to address the situation promptly. The team will notify customers as soon as they fall into arrears but they will not be taking a hard approach to begin with as they plan to provide financial advice and only take legal action if all other attempts fail. It is this action that may see tenants evicted from their home.
Elaine Jackson, Group Arrears Recovery Manager, said: “We are having a robust crackdown on rent arrears. We will take action if tenants fail to engage with us, but we are here to give advice and assistance. We understand that some people fall into arrears, and we are here to help them – but they must take a responsibility as well. Tenants should be paying in advance, and it gives us time to get in and help them if they need it.”
Chorley Community Housing tenants will also be given the opportunity to take advantage of two rent free weeks commencing on April 2nd and April 9th. During the weeks, those in rent arrears must still pay and this will allow them to either reduce or clear their debt. Chorley Community Housing are part of Adactus Housing Group who since April 2011 has helped almost four-hundred tenants who have been struggling, to manage their finances, through a free ‘Money Advice’ service. This service has resulted in an additional income of £250,000 for CCH and at the same time helped tenants manage their finances more successfully.