Rent Setting and Service Charges Review
We are starting to review our Rent Setting and Service Charge Policy as the existing policy:-
- is old and may be out of date;
- is complicated, with a large range of factors affecting each property's rent;
- has 196 variations of rent charges;
- means some people living in multi storeys are paying more than some living in back and front door houses.
This review is about the principles behind how we set rents; our aim is to introduce a policy which is simpler, fairer and easier to understand. We want to take account of tenants' views in deciding what changes to make.
We currently have two separate policies for Rent Setting and Service Charges and we would like to combine both these policies in this review.
Collecting views began at the Tenants' Open Day on 22nd August 2009. Staff explained that being consulted on rent setting is a tenant's legal right. We ran a workshop asking about the best way to make sure that tenants could become involved in the review.
We got comments on:
- Which property types should have higher or lower rent levels?
- Should the age of the property be taken into account?
- Should rents vary by the popularity of the area or should a 2 bedroom house have the same rent irrespective of where it is?
- Should service charges be paid only by those that receive the service?
"The Rent Setting and Service Charge Policy review isn't a back door way of increasing our income", says Sandra McLeod, Head of Housing Services. "For the Association, we would be getting the same income whatever way the decision goes. However, it's likely that some people will pay less and some will pay more. It will depend on what services they get. It's a matter of what's the right way to do this".
How can I get involved?
It was decided to have a series of discussion meetings for tenants and recognised residents' groups. Owner Occupiers and Sharing Owners will be invited to a separate session to discuss the service charges that affect them. In each session we'll look at:
- How to make the information on what influences rents more meaningful;
- Your views on the principles of how rent charges should vary, e.g. property type, size, age, location, etc.
- Service charges – why are they extra and what are you paying for?
Tenants' Sessions:
- Tuesday 3 November 2.00pm to 4.30pm at Cube, SkyPark
- Tuesday 3 November 6.00pm to 8.30pm at Cube, SkyPark
- Saturday 14 November 10.00am to 12.30pm at Cube, SkyPark
If you're interested in coming along to a tenants only session contact:
Val Muirhead on tel: 0141 242 4887 or you can email by clicking here.
Book early, places will be allocated on a first come first service basis. If you need transport or help with care of your dependents, we can help get it arranged for you.
Cube will also hold local tenant drop-in sessions, where tenants can get information, ask questions and influence the decisions. You don't have to book these. Any Cube tenant can drop-in and speak to our staff who will be happy to listen to their views.
Tenants' Drop-In Sessions:
- Tuesday 10 November, 2.00pm to 4.00pm at Disability Forum, 42 Campbell Street, Hamilton, ML3 6AS
- Tuesday 17 November, 2.00pm to 4.00pm at Lomond & Trossachs National Park Authority, Carrochan Road, Balloch, G83 8EG
- Friday 20 November, 2.00pm to 4.00pm at Airdrie Library, Wellwynd, Airdrie
After these events we'll also meet with recognised residents' groups. Our staff will contact your group to arrange to meet.
Owners
We're not forgetting the owners and shared owners who pay factoring charges. If you receive factoring services from Cube, you're invited to a special session on charges for services like landscaping, caretaking, laundries, administration, etc. We'll discuss:
- What the administration charge pays for and what it doesn't
- Service standards and performance
- Factoring charges for 2010/11
Owners & Sharing Owners:
- Wednesday 11 November, 2.00pm to 4.00pm at Cube, SkyPark
- Wednesday 11 November, 6.00pm to 8.00pm at Cube, SkyPark
Don't worry if you cannot attend the sessions organised, you can tell us your views on the questionnaire by clicking the following link, Rent Setting and Service Charge Review Questionnaire.
Why are there so many variations?
Our existing rent setting policy has a wide range of factors which are taken into account when setting rents such as size of balconies, size of kitchens , a variety of ages of properties, double glazing, high/low demand, etc.
What is the difference between a rent charge and a service charge?
Your rent pays for the essential running of the housing service – the repairs, tenancy management, dealing with anti-social behaviour, letting empty properties, repaying the loans for buying transferred housing stock, building new homes and big improvements like new bathroom and kitchens. Service charges pay for important services which don't apply to every house, e.g. stair cleaning, open space maintenance, heating, furniture packages, common rooms.
When will the changes happen?
Following the consultation period we aim to develop the policy over the next few months taking into account tenants' feedback. We will then see the how the draft policy will impact on individual rent charges, and prepare a report for our Board to consider.
The actual changes will not be implemented until 28th March 2011.
How will I be kept up to date with progress?
We shall include articles in the quarterly newsletters letting you know on progress made and any implications that you need to be aware of.
What will I do if I cannot afford the new rent charge?
Affordable rents is one of the core objectives of a Rent Setting Policy and this will be taken into account when we review the Policy and work out the implications.
If you are having problems paying your rent, you may be able to get help. Many tenants are unaware they are entitled to benefits. If you're worried about being able to pay your rent at any time, you can call us in confidence at 0141 945 3155.
Housing Benefit can be claimed to cover all or some of the rent and service charges, depending on your household income. In general, if your rent and charges go up, your Housing Benefit will increase by the same amount.
You can also get help and advice on housing benefits from your local Council Housing Benefit Office which are:-
| Glasgow City Council at: | ||
| George Street | 0141 287 5955 | |
| Maryhill | 0141 287 1380 | |
| Anniesland | 0141 287 1000 | |
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| East Dunbartonshire | 0141 578 8155 | |
| South Lanarkshire | 01698 453 334 | |
| North Lanarkshire | 01236 688 615 | |
| East Renfrewshire | 0141 577 3002 | |
| Renfrewshire | 0141 840 3940 |
Who can I speak to if I need any advice or help?
Our staff at the Housing Office will be happy to help you with any enquiries. They are available at 70 Glenfinnan Road, Wyndford, Tel. 0141 945 3155.
When will the consultation period end?
The first phase of the consultation has started and we aim to gather feedback until the end of November 2009.
We shall continue to listen to your views and will keep you uptodate with progress over the coming months in our quarterly Newsletters and on this website.
We intend presenting a draft report to our Management Board in April 2010 seeking their approval of a new policy, although the actual changes will not be implemented until the following year on 28th March 2011.