RCT bond scheme guarantees rental deposits

Lower income residents of Rhondda Cynon Taf might not have an escape from homelessness had it not been for a bond scheme created by the Council. The Tenancy Guarantee Scheme addresses the inability by poor households to pay upfront the rent deposit and advance rent on a private property.

The scheme is not accepted by all landlords. It does however provide an enhanced ability to facilitate the new tenancies necessary to prevent homelessness. It also serves to reduce vacancies amongst listed properties in Rhondda Cynon Taf. Given the lack of affordable housing in the country, the scheme provides a necessary service for the community. A segment of the population cannot come up with the equivalent of two months of rent payments but they can afford the monthly rate. The scheme makes it possible for them to be housed while still protecting the landlord from losses.

The RCT Tenancy Guarantee (Bond) Scheme works like this. Participating landlords agree to accept a certificate instead of a cash deposit for a private home located within Rhondda Cynon Taf. Tenants may move in by paying the advance rent only, saving them half of the upfront cash normally required. If the tenants vacate prior to the end of the tenancy or leave damages behind, Council agrees to cover those costs. The limit of such coverage is a full month’s normal rental rate.

While the scheme is intended for only those with lower incomes, it may be possible for others to participate if they meet certain conditions. It is up to Council staff to approve each applicant based on a series of determining factors.

The home itself must meet specific criteria and will have to be approved after Public Health Department representative inspects the home. The Tenancy Guarantee Scheme Officer will also need to conduct an inspection. The monthly rate cannot exceed affordability guidelines and should be a good match to the needs of the tenant.

How to get help with rent deposit

To participate in the scheme, residents with a local connection may contact the Housing Advice Centre at 01443 485515. An appointment at the Gelliwastad Road office in Pontypridd will be necessary so that a Housing Advice Officer can conduct an assessment.

The Housing Advice Officer will review documentation of household income and a budget. They are seeking to confirm the need for the scheme and the suitability of the home in the Private Rented Sector (PRS). If a recent hardship has been incurred, applicants should be prepared to explain the circumstances of the hardship, how it began and what the outcome was or is expected to be.

Detailed information on total income and expected job situation will be noted. They want to confirm that an applicant will be able to afford continuous rent payments if the tenancy is approved.

If it is determined that the applicant is eligible and the selected home is a proper match, then Council will negotiate with the landlord to accept a bond guarantee. The bond must be agreed and a certificate issued prior to entering a tenancy agreement. Tenants are normally instructed to avoid initiating the tenancy until the bond certificate has been issued. All questions should be referred to the Housing Advice Officer that is assigned to a particular application.