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One method for reducing the cash down requirement of new tenancies has been the issuance of a bond. Stirling County Council is able to offer this service to lower income citizens thanks to a partnership with the Cowane’s Trust.

The trustees know that paying the equivalent of two months rent prior to moving into a private home can be hard for many lower income families. It can especially be difficult when a family has small children or for a young person on low wages. Many of these residents would be homeless or confined solely to social housing without the extra support provided by the Stirling Rent Deposit Guarantee Scheme. They may be able to pay rent in advance or deposit, but not both due to a lack of savings.

According to the Housing Options Officer, there are some special conditions that must be met by any candidate for the bond scheme. An applicant must be free from arrears resulting from current and prior tenancies or mortgages. Any property chosen must charge rent no greater than Local Housing Allowance. This is taking into account the number of bedrooms to ensure a proper match.

Council requires that any property selected for rent be located within Stirling Council area. The purpose is to maximise the impact on both lower income residents and on landlords struggling to fill vacant homes. Everyone benefits when homelessness is reduced and vacancies are filled.

Landlords must also be included in the Register of Landlords. It is a requirement in the scheme that all participants agree to follow the legal guidelines regarding tenancy agreements, including taking the proper steps if a tenancy must end early.

To access the scheme, residents may contact the Housing Options Team at Stirling Council on 01786 432400. Landlords that wish to participate by agreeing to accept a bond certificate should call Stirling Council Housing and Customer Service. That telephone is 0845 277 7000.

A Housing Options Officer will work with both a qualifying resident and a willing landlord to establish common terms and to sign a bond agreement. Included with the agreement is an inventory of appliances and other equipment that will be covered by the guarantee. If the resident damages documented items, then the landlord may file for reimbursement through the council. Rent arrears are also eligible for reimbursement. The maximum amount of charges that may be claimed are noted in the bond agreement. This maximum is typically equal to four weeks rent.

Stirling Council agrees to pay approved charges to the landlord even if the tenant is unable to repay the amounts. The tenant is responsible for making good on any charges. They may enter into an instalment plan with the Housing Options Team whenever necessary to accommodate other budgetary constraints. A reserve fund has been established with a donation from the Cowane’s Trust to ensure solvency.

The bond scheme has proven to be a successful way to help local residents gain access to the private rented sector. Those who might otherwise face the difficult choice of homelessness or overpaying for temporary accommodation have a better option.

It has also opened up the private sector to allow for greater access by those on benefit. Many landlords previously shunned these applicants but are now approving more of this class due to their protection against unpaid arrears. Even if a payment is late, a Support Worker can step in to provide support in an attempt to prevent early termination.

Tenants also have much protection. In addition to being able to skip the cash deposit, they have the peace of mind that the landlord has been fully vetted by the council. Landlords with a history of harassment or illegal evictions will not be eligible for inclusion within the scheme.

Having opened up to the first residents in 1999, the Stirling rent deposit guarantee scheme has had many successes over the years. It has reduced homelessness, boosted the private rented sector and provided the support necessary to vault residents into a pattern of responsible living.