Why do you need to pay rent on time?
We are often asked why we request residents to pay their rent on time. You may know this as rent in advance. It’s a fair question! Here’s why we do it:
The money we get from rent payments is used to fund the services we provide. Without it, we can’t do what we do. These funds go towards various aspects of our work, including:
- Operating expenses – utilities and insurance
- Cost of maintaining your home – including repairs, maintenance and any necessary upgrades to keep your home in a good condition.
- Financing costs – this includes any interests payments on loans taken out to finance any construction or renovation of your home.
- Capital improvement – this includes any major upgrades or renovations to the property such as replacing heating systems, roofs or windows.
- Building new homes – To make sure everyone has access to a safe, warm, and affordable place to all home.
I receive Housing Benefit or Universal Credit do I still need to pay rent on time?
- If you get Housing Benefit or Universal Credit you still need to pay on time. This is because Housing Benefit or Universal Credit is paid later than your rent is due.
- If you didn’t pay on time and your benefits were stopped for whatever reason, you could fall into a lot of debt straight away.
We understand that Rent on time can be confusing, which is why we have created some example statements to help you.
View the different examples
Universal Credit Additional Payments
Monthly Universal Credit - Not on Time
Monthly Direct Debit Payer - On Time
Monthly Direct Debit Payer - Not on Time
1 Bounced Direct Debit
Weekly in Advance
Explanations for each
Additional Payments
£50 rent on time payment made on the 1st week of the tenancy and every month after.
Monthly Universal Credit – Not on Time
The monthly payment is made in arrears and only the basic rent is being paid.
On Time
As payment was received before the direct debit was set up on the 30/01/2023, there is a “buffer” in place if the direct debit does not go through for any reason.
Not on Time
Why is the account still in arrears on the 30/01/2023
The monthly payment is made in arrears and only the basic rent is being paid.
As payment was not received before the direct debit was set up on the 30/01/2023, there is no “buffer” in place. The direct debit has not gone through. Arrears have increased and risking contract.
What happens if one direct debit returned unpaid?
There will still be no arrears as £200 was paid on the 1st day of the tenancy