The Bond Guarantee Scheme helps people at risk of homelessness access privately rented accommodation, overcoming their inability to provide a bond or deposit.
As house prices remain high, there has been an increase in demand for rented accommodation. Private landlords ask for a bond from the tenant to safeguard themselves against tenants causing damage to the property or leaving owing rent. It usually takes the form of a cash payment equal to a least one month's rent but is often more. To offer help to tenants wishing to rent in the private sector, the Bond Guarantee Scheme was introduced to remove the burden of having to find a large amount of cash before they can access the housing they need.
The scheme means that the tenant does not have to find the extra money and the landlord still has the security of a bond giving the reassurance that they have cover for any rent arrears and property damage creating a solid foundation for the tenancy. The scheme provides a guarantee against loss or damage to the property or its contents, to a maximum of £500 or 5 weeks rent equivalent.
The bond is not a cash payment. We offer landlords a guarantee that we will honour any bond money requested in lieu of rent arrears, legal fees or damage (up to the maximum of £500 or 5 weeks rent equivalent). It is then expected the tenant will repay the money to the council. We pay no money up front to the landlord.
Anybody wishing to apply should be working with Housing Options and at risk of homelessness.
If we have to pay your landlord the guarantee because you default on your tenancy we will expect you to pay us back.
Bond Guarantees can be claimed by the landlord to cover:
- Damage or abnormal wear or tear.
- Legal fees
- Rent arrears
It will not cover basic cleaning costs or costs usually associated with managing homes.
The landlord, client and the council sign the Bond Agreement and all parties hold copies.