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High entry costs are a frequent obstacle for lower income residents seeking their own flat. The Moray Council Keyfund attempts to solve this problem by releasing new tenants from this requirement.

The Moray Keyfund is the official rent deposit guarantee scheme for citizens who cannot afford to put all of the money in for a new tenancy. This tool enables people to move into a new private property before they have a chance to save up a rent deposit.

Moray Council understands that residents sometimes fall into the trap of borrowing money to move into a new place. Often these loan products have high rates of interest and other fees that can make repayment difficult. The customer either defaults on the loan or on their rent. Neither is a good outcome.

People who lack the necessary savings now have the option to put a little towards the deposit over the course of several months. Even though it works similar to a loan, there are no interest payments or fees that must be paid. It is absolutely free.

Landlords must consent to accept a bond guarantee rather than a cash deposit. The Homelessness Projects Officer can explain the scheme to a landlord and negotiate acceptance. A bond agreement is completed and signed, with the landlord receiving a bond certificate. The certificate guarantees that any damages will be reimbursed by Moray Council even if the tenant is unable to make a payment.

Landlords are provided with a process to follow in order to receive payment for covered damages. These include items that were listed in the inventory that were broken or negatively altered by the tenant. The bond agreement covers all approved charges up to the amount of the bond, which is the same as the normal deposit requirement. Arrears left by the tenant are also eligible for coverage. It basically includes the same types of charges that a landlord could claim against a cash deposit.

Someone who earns low income may be a candidate for the scheme. If a resident is eligible for Local Housing Allowance, they will probably be referred by the Housing Options Team. Often a referral is made when the person is at risk of homelessness and they cannot afford to pay everything necessary to move into a new home.

To be considered, someone who is from Moray must lack the savings necessary to pay all of the move in costs. They must also be able to reasonably afford to pay the regular rent payments on a permanent basis.

The scheme replaces the cash deposit for the initial tenancy agreement. This can be for either six or twelve months. During this time the tenant will make small instalments to Moray Council which will be kept on deposit for benefit of the tenant. These funds will be submitted to the landlord as a cash deposit once enough of a balance has accrued to meet the deposit requirement.

The rent deposit guarantee scheme does not allow for self-referrals. This means that no person can simply decide that they want to participate. Instead, an appointment with the Housing Options Team is necessary to determine what types of rental assistance the person needs. This could include a number of possibilities, such as budget help or helping to access grant funding.

When the Housing Options Team decides that someone meets guidelines and could be helped by the scheme, they will refer the person to formally apply for aid. The Keyfund application requires documentation of all household income and family members.

The Homelessness Projects Officer considers any recommendations made by the Housing Options Team. They will also verify information by requiring documentation of certain information.

Once approved, the landlord will be provided with a signed bond agreement and guarantee certificate. This step must be completed prior to signing a tenancy agreement!

Anyone who is having trouble gaining access to private housing is welcome to call the Council on 0300 123 4566. If approved for the Moray Keyfund, a new tenancy can be established with only the rent in advance payable to the landlord. Assessments are normally held at Council offices in Elgin. Separate contact telephones are established for:

• housing emergencies (08457 565656)
• housing benefit (01343 563456)