The Rent Deposit Guarantee Scheme has been set up to help homeless applicants who are prevented from finding somewhere to live because they are unable to raise the required deposit in advance for rent or against possible damage.

It is also hoped that the introduction of this initiative will encourage the participation of local landlords and thereby expand the use of private rented accommodation to meet families' housing needs.

What is the Rent Deposit Guarantee Scheme?

The principle behind the rent deposit guarantee is that the Council, before the commencement of the tenancy, will indemnify participating landlords against damages or rent loss up to the equivalent of one months rent. In exceptional circumstances the Council will also consider providing a deposit as an alternative to a guarantee.

What costs are covered under this guarantee?

The scheme will allow the landlord to submit a claim once the tenancy has ended and where the following situations apply.

• Rent arrears accrued during the tenancy up to a maximum of one months rent or
• Repair or clearance costs attributable to the tenant's neglect up to a maximum of one month's rent.
  
  The maximum payment under the guarantee is limited to the equivalent of one month's rental.

Who can benefit from the scheme?

The scheme is specifically designed to assist homeless applicants, who are unable to raise the initial deposit to secure the tenancy of a property.

However, the rent deposit guarantee will only apply to accommodation where both the tenant and landlord have agreed to stick to the terms of the scheme. An agreement will need to be signed by both the landlord, the tenant and the Council.

Accommodation standards and affordability

Before accommodation can be used under the Rent Deposit Guarantee scheme, it will be necessary for checks to be carried out to ensure that the property is suitable for the applicants needs and that the prospective tenants can reasonably meet the rental payments, either with assistance from Housing Benefit or from their own income.

Finding suitable accommodation

Landlords willing to participate in the scheme will be required to provide information to the Council on the property available to rent and its condition, type, size, location and general amenities.

Information on vacant properties can be obtained from local Estate Agents or Letting Agents.

Applicant identification and approval

To assist in identifying genuine applicants a Rent Guarantee Certificate can be provided, which will specify the person's name and address and be signed by the Council. Once the identification of a property has taken place and all other matters have been agreed the application will be separately approved.

If you move in before approval has been granted, cover cannot be provided under the scheme.

What happens if a claim is made by the landlord?

If the tenancy has not been conducted satisfactorily, a landlord can make a claim against the Rent Deposit Guarantee at the end of the tenancy. Full details of any repairs or clearance costs required to the property must be submitted to the Council and reasonable opportunity to inspect the premises must also be given. If a claim from a landlord is substantiated, the tenant will be responsible for repayment of the sum involved to the Council.

Advice and further information

The Deposit Guarantee Scheme is being co-ordinated by the Housing Services Section and further information can be obtained by telephoning 01255 866438, 686445 or 686444 or by emailing housing.services@tendringdc.gov.uk