PI's: Rent Arrears (Net of Unpaid HB)
Income: Rent Arrears (Net of Unpaid HB)
SWBM400: Rent arrears net of unpaid HB – GN only
SWBM410: Rent arrears net of unpaid HB – Supported Housing
SWBM420: Rent arrears net of unpaid HB – OP only
Rationale, Definition & Worked Example
Below you can find information regarding the rationale, definition and formula for this performance indicator. This includes a worked example to demonstrate how this indicator should be calculated.
Rationale
This indicator is a key measure of the effectiveness and efficiency of a social landlord’s rent arrears collection service. An efficient rent collection service is important to ensuring that as much of the rent due, and thus potential income due to the landlord, is collected and received.
Definition
This indicator calculates the rent arrears of all current GN tenants at the end of the period as a percentage of the annual rent debit (for the current financial year).This figure should EXCLUDE arrears due to late Housing Benefit payments.
This covers all General Needs rented stock (excluding garages).
Court costs are separate sundry debts and should not be included in the calculation.
Former tenant debts (even those which have followed a tenant to their current tenancy) are separate and should not be included in this calculation.
Advance payments on some properties should not be used to offset arrears on other properties (technically, these overpayers could ask for their money back).
This covers all General Needs rented stock (excluding garages).
Court costs are separate sundry debts and should not be included in the calculation.
Former tenant debts (even those which have followed a tenant to their current tenancy) are separate and should not be included in this calculation.
Advance payments on some properties should not be used to offset arrears on other properties (technically, these overpayers could ask for their money back).
Formula
(A / B) * 100
A = The actual value of current tenant rent and service charge arrears at the end of the reporting period excluding arrears due to late Housing Benefit payments..
B = The annual rent debit for the current financial year. This is the net rent debit after deduction of rent loss due to voids.
A = The actual value of current tenant rent and service charge arrears at the end of the reporting period excluding arrears due to late Housing Benefit payments..
B = The annual rent debit for the current financial year. This is the net rent debit after deduction of rent loss due to voids.
Worked Example
As at the end of September, there were £85,000 rent and service charge arrears owed by current tenants. The annual rent debit for this year is £1,000,000.
Current tenant arrears as a percentage of the annual rent debit = (85,000 / 1,000,000) * 100 = 8.5%
Current tenant arrears as a percentage of the annual rent debit = (85,000 / 1,000,000) * 100 = 8.5%