PI's: Former Tenant Arrears
Income: Former Tenant Arrears
HCPI110: Former tenant arrears as a percentage of the annual rent debit – GN only
HMSH 330: Former tenant arrears as a percentage of the annual rent debit – Supported Hsg
HMHO 330: Former tenant arrears as a percentage of the annual rent debit – HfOP/Sheltered
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
The purpose of this indicator is to identify whether the landlord is successfully preventing former tenant arrears from arising and how they are performing in terms of collecting those that do arise.
Definition
This indicator calculates the amount of former tenant arrears outstanding at the end of the period as a percentage of the total rent debit. It includes former tenant arrears from all relevant social rented dwellings (excluding garages). It includes former tenant’s service charges, but would not include court costs or overpaid Housing Benefits which are sundry debts normally accounted for separately.
This indicator does not include rent and service charge arrears that have been written off. As such this figure can reduce either through former tenant arrears being recuperated, or through them being written off. Note that ‘set asides’ should continue to be included as former arrears until they are formally written off.
This indicator does not include rent and service charge arrears that have been written off. As such this figure can reduce either through former tenant arrears being recuperated, or through them being written off. Note that ‘set asides’ should continue to be included as former arrears until they are formally written off.
Formula
(A / B) * 100
A = The actual value of former tenant rent and service charge arrears at the end of the reporting period.
B = The total rent debit for the year.
A = The actual value of former tenant rent and service charge arrears at the end of the reporting period.
B = The total rent debit for the year.
Worked Example
As at the end of September there were £15,000 rent and service charge arrears owed by former tenants. The annual rent and service charge debit for this year is £1,000,000.
Former tenant arrears as a percentage of the annual rent debit = (15,000 / 1,000,000) * 100 = 1.50%
Former tenant arrears as a percentage of the annual rent debit = (15,000 / 1,000,000) * 100 = 1.50%