PI's: Rent Written Off
Income: Rent Written Off
HCPI100: Rent written off as a percentage of the annual rent roll – GN only
HMSH 320: Rent written off as a percentage of the annual rent roll – Supported Hsg
HMHO 320: Rent written off as a percentage of the annual rent roll – 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 ensure that the amount of rent arrears and service charges written off is identified as a percentage of the rent roll. It helps to identify whether a landlord is appropriately writing charges off, in accordance with good accounting practice.
Definition
This PI measures the rent written off as a proportion of the rent roll. Rent written off is based on the total amount of rent (including service charges eligible for housing benefit) which is written off during the period benchmarked as unrecoverable. The amount written off includes both current and former tenant arrears.
The rent roll is the total amount of potential rent (including service charges) which would be collected in the year on all relevant dwellings (excluding garages) if they had been occupied at all times.
Note this indicator can only ever increase over the course of the year, or remain constant if no write-offs are made in any given quarter. As such the figure is ‘cumulative incremental’ and re-sets at the beginning of a new financial year.
The rent roll is the total amount of potential rent (including service charges) which would be collected in the year on all relevant dwellings (excluding garages) if they had been occupied at all times.
Note this indicator can only ever increase over the course of the year, or remain constant if no write-offs are made in any given quarter. As such the figure is ‘cumulative incremental’ and re-sets at the beginning of a new financial year.
Formula
(A / B) * 100
Where A = The actual value of rent and service charges written off year-to-date.
And where B = The annual rent roll for the year.
Where A = The actual value of rent and service charges written off year-to-date.
And where B = The annual rent roll for the year.
Worked Example
During the first six months of the year, there were three write-offs of £4,000 value each, totalling £12,000 year-to-date as at the end of September. The annual rent roll for this year is £1,000,000.
Rent written off as a percentage of the annual rent roll = (£12,000 / £1,000,000) * 100 = 1.20%
Rent written off as a percentage of the annual rent roll = (£12,000 / £1,000,000) * 100 = 1.20%