Private Rents and Bonds
Powys Bond Scheme
Landlords - do you have a tenant who needs a financial support to pay the deposit?
Powys County Council Bond Scheme may be able to help by offering a Paper Bond to people who are homeless or at threat of homelessness.
This financial assistance is based on affordability and the individual circumstances, by providing a paper deposit/bond to qualifying tenants.
When the person is accepted for a property the Powys Bond Scheme works with the tenant and landlord to sign a Bond Agreement which specifies the tenant will save over two years to reach the total of the deposit.
The Bond Savings agreement is set up with Smart Money Cymru Community Bank and is a monitored deposit only account, when the savings are complete the Powys Bond facilitators release the cash deposit to the landlord.
Can I keep the bond myself until the tenant moves on?
Since 6th April 2007 it has been a legal requirement for all deposits (for rent up to £25,000 per year) taken by landlords or letting agents for assured shorthold tenancies to be protected by a tenancy deposit protection scheme.
There are three schemes available, two of which are insurance-based, which allows the landlord to keep the deposit if they pay a premium to the scheme, or alternatively a custodial scheme which holds the bond on behalf of the landlord (free of charge) until the end of the tenancy.
Remember: You must give the tenant details about how their deposit has been protected within 14 days of receiving it. Failing to protect a bond/deposit can result in court action and a requirement to repay the bond and a fine of 3 times the amount of the bond. It may also mean that you may not be able to gain possession of a property at the end of the tenancy.
For more information about tenancy deposit protection visit Deposit protection schemes and landlords: Overview - GOV.UK
How much rent can I charge?
The amount of rent you charge is up to you, but it should be reasonable, based on the size and condition of the property. Remember that if it is not in line with rents being charged for similar properties in the area you are unlikely to attract a tenant.
What is Local Housing Allowance?
Local Housing Allowances (LHA) are set by each local authority; it considers the maximum amount payable of the Rent Element of Universal Credit or housing benefit. This is awarded to a household based on the number of bedrooms required by the tenant and their family.
If the amount of rent you charge is higher than the local housing allowance entitlement of the household renting your property, the tenant will be responsible for topping up the difference.
Will Housing Benefit be paid direct to me?
The Rent Element of Universal Credit is generally paid directly to the tenant who is then responsible for paying the rent.
However, in certain circumstances, for instance if a person has been homeless or if the tenant is likely to have difficulty in managing their financial affairs, payment may be made direct to the landlord. This can be arranged by completing an application at Home - Apply for direct rent payments - GOV.UK
What if my tenant is struggling to manage financially?
Support can be provided to help people who are having difficulties with tenancy-related issues. Tenants in this situation should be advised to contact Powys County Council's Housing Service on 01597 827464.
If the tenant is part of the Powys Bond Scheme contact the Bond facilitators on the number below.
Alternatively, the Housing Department may signpost you to other relevant organisations such as; Shelter (Tel: 0845 075 5005) and Citizens Advice Bureau (Tel: 08444 77 20 20).
Alternative support and advice can be provided regarding a range of issues such as budgeting and debt management, accessing benefits or referral to mental health support.
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