Recharge Policy

Part of Fairhive's Income Recovery Framework - Level 2 policy approval. 

1. Statement of Intent

1.1 The Fairhive Homes Limited (Fairhive) seeks to deliver value for money to all its residents (tenants and leaseholders). We will therefore seek to recharge and recover any identified costs, incurred outside of our accepted area of responsibility from the individual resident(s) responsible.

2. Outline of Policy

2.1 This document details our policy on recharges to residents and clarifies when such charges are the liability of the resident, setting out the aims, principles and values that will be followed by us in ensuring financial recovery of operational costs that fall outside of our obligations.

2.2 Who is responsible for a repair is provided in the publication ‘Your Quick Guide to Home Repairs and Maintenance’.

2.3 This policy has been drafted in line with our strategic objectives. It reflects the current regulatory framework and is underpinned by operational procedures which have been formulated in consultation with residents and employee representatives as appropriate.

2.4 We aim to deliver value for money to all our customers. Therefore where we incur a cost for which we are not liable for or an unreasonable cost arises because of the actions of its residents or service users, we will expect to recover that cost from the person who has caused it - this is known as a "recharge".

2.5 We reserve the right to add a nominal administration fee at rates set annually to those recharges referenced in section 4 of this policy.

2.6 This policy is consistent with commitments contained within our Responsive Repairs and Voids Maintenance Policy and Tenancy Agreements, and re-enforces resident responsibilities.

3. Responsibilities

3.1 Tenants

3.1.1 The Tenancy Agreement defines a tenant’s responsibilities and the obligations of the landlord. These are also addressed in the Repairs Handbook.

3.2 Leaseholders

3.2.1 The terms of the lease define the leaseholder’s responsibilities. Usually, as the freeholder, we will only be responsible for repairs to communal areas and not for repairs to leaseholder properties.

3.2.2 Where the leaseholder is permitted to sublet their property, the leaseholder is responsible for his/her tenant and will ensure that all the terms of the lease are abided-by. Any costs incurred by us due to the leaseholder's tenant will be re-charged directly to the leaseholder.

3.2.3 Where rechargeable situations are as a result of criminal damage the tenant or leaseholder must provide a crime reference number and confirmation of any insurance coverage that may be in place. 

4. Rechargeable Cost

4.1 We will seek to recover costs from residents and leaseholders in the following situations (this list is not exhaustive):

4.2 Rechargeable repair works.

4.2.1 In most instances we will charge a minimum payment of £50 (excluding VAT) for routine repair works that are the residents’ responsibility. Whenever possible this payment is to be taken in advance of the works being completed.

4.2.2 Higher charges will be made for larger works based on the standard charges listed within Appendix A. For charges in excess of £200, the resident will be expected to pay the first £200, in advance of the works being completed.

4.3 End of tenancy/mutual exchanges.

4.3.1 Following the end of a tenancy, the property should be left in a clean, tidy and empty condition. Upon receipt of notice of intention to end a tenancy, we will issue the tenant with our recharge list at Appendix A and advise that any required repairs, including those listed in the Appendix, which are outstanding once the tenant has vacated, will be recharged. 

4.3.2 If goods are left in a property, we are legally obliged to store the goods for a reasonable period, usually 14 days and will seek to recover any associated costs.

4.3.3 Before letting and at void inspection we will, as appropriate, take dated photographs of any necessary repairs. This will assist if repair responsibilities and recharges are later disputed.

4.3.4 Any work undertaken by a previous resident that is highlighted to an incoming resident, (which may be after they have moved in as part of a mutual exchange), will become the responsibility of the incoming resident.

4.4 Estate Management.

4.4.1 We will make recharges in connection with the following:

• Clearance of large items or removal of other waste which have been dumped or fly tipped on our land or property where those responsible can be identified.

• Costs associated with the identification and removal  of vehicles that may have been abandoned on our land.

• Costs associated with remedying anti-social behaviour (ASB) where the perpetrator is known.

4.5 Leaseholders.

4.5.1 Leaseholders pay for communal services including repairs according to the service charge provisions of their lease and according to legislation. Individual recharges to leaseholders will be levied for any works requested or that are necessary but which are not covered by the service charge. Examples of such charges include:

• Any major works undertaken at the leaseholder's request will be agreed, estimated and recharged. The leaseholder will be expected to pay the recharge in advance of any work being completed.

• Gas servicing and cyclical maintenance works to leasehold and shared ownership properties, where these services are offered and accepted by the leaseholders

4.6 Missed/Failed Appointments.

4.6.1 We will seek to recharge residents if they fail to be present for any agreed and confirmed appointments.

4.6.2 A standard charge of £25 (excluding VAT) will be made for each missed appointment which was not cancelled in advance.

4.6.3 The resident will also be charged for any materials that cannot be returned or re-used.

4.7 Permissions.

4.7.1 Where a resident applies for permission from us to alter his/her property and an inspection or inspections are required by one of our employees, each inspection will be charged at a flat rate of £50 (excluding VAT).

4.7.2 Where improvements or modifications have been undertaken without the appropriate consent, recharges will be made based on a standard £50 (excluding VAT) inspection charge for each inspection that we have to make to ensure that the property is returned to it’s original condition.

4.8 Court costs/debt recovery fees

4.8.1 Court application and proceeding costs incurred by us will be recharged to the resident. A separate recharge will not be arranged where these costs are ultimately incorporated within a court order or money judgment.

4.8.2 A minimum £20 (excluding VAT) administration fees will be recharged for any activity relating to the collection of outstanding qualifying recharges.

5. Exemptions.

5.1 Our approach to recharges is to recover such costs wherever we are entitled to do so. We will consider individual circumstances as regards to vulnerability and sensitivity before raising such charges.

5.2 Where such circumstances are suspected or confirmed, the relevant manager will assess the situation, and decide whether the charges should be waived with input from other teams as appropriate.

6. Repairs.

6.1 When a resident reports a repair we will inform them who is responsible for that repair.

6.2 Where the resident is responsible, they will be given the opportunity to undertake necessary repairs to their property to an agreed standard within eight weeks.

6.3 Where the work is not done or not completed to the agreed standard we reserve the right to undertake the work and to charge the resident accordingly. In these cases the resident will be advised of the cost of the work, in advance, based on the standard charges listed within Appendix A and will be expected to make payment to Fairhive in advance of the works proceeding. The recharge cost will include:

• The cost of the repair work including materials, with a minimum charge of £50 (excluding VAT) being applied.

• An administration charge of £20 (excluding VAT) which is deductible if the bill is paid in advance

• VAT at the current rate.

6.4 In a limited number of circumstances we will immediately take responsibility for completing repairs which fall outside of our obligations, which include:

• Emergency situations or health and safety issues; we will establish responsibility and arrange any appropriate recharges afterwards.

• Repairs which are the residents responsibility, when the resident has permanently left the property or has refused to do the work.

• Situations where the repair is necessary to avoid further damage to the property or any other properties or where an unacceptable delay by the resident in reporting a repair results in excessive damage to the property that could have been avoided.

6.5 In cases where payment for recharges cannot be made in advance, either due to situations listed in 6.4 or where it has only become apparent, that the work required is the resident’s responsibility when the operative attends, we will establish responsibility and arrange any appropriate recharges after the works are completed.

6.6 Where damage is sustained to our property in internal/ external communal areas (e.g. stairwells/fencing), we will carry out the remedial works and recharge the perpetrator, if known.

7. Recharge Principles.

7.1 All recharges will have VAT at current rate added to them and will be based wherever possible on the standard charges listed within Appendix A. Where specialist works are undertaken either by us or by an external contractor, that are not covered by the standard list of charges, the recharge will be based on the actual cost to us.

7.2 We may raise a recharge even in the absence of an immediate forwarding address.  For example when a property has been abandoned, or a resident is evicted.

7.3 Payments should be made to Fairhive Homes Limited through the Contact Centre using a credit/debit card. Should payment be made by cheque, repair works will not commence until the cheque has cleared. At no time will a cash payment be accepted for recharge works.

7.4 Court action may be pursued when charges remain outstanding. Any associated costs will also be recharged.

7.5 If there are multiple debts owed by the resident, then the payment of rent or lease arrears will remain the priority debt.

8. Complaints.

8.1 A person who is dissatisfied with the application of this policy and feels that they have been recharged in error can raise the issue under our complaints procedure.

9. Monitoring.

9.1 We will monitor the effectiveness of our recharge processes by validating:

• The amount of revenue recovered as a result of recharging for services, such as repairs, which are not our responsibility.

• The costs of all repairs carried out where recharges could not be recovered.

• The overall repairs and void costs per property.

9.2 The effectiveness of this policy will be monitored by the Senior Managers Group who will report to the Executive Management Team on the annual level of recharges levied and collected.

10. Equality and Diversity.

10.1 This policy is applicable to all residents. Vulnerability issues will be considered when raising the charges and our senior managers have the authority to waive valid recharges where these may adversely impact vulnerable residents. Waiver of valid charges will be approved in line with the Financial Regulations.

11. Value for Money.

11.1 The annual level of recharges will be tracked to demonstrate the application of this policy.

11.2 The benefit of an effective recharge policy should be evidenced by a reduction in resident liability repairs. This will be a factor that contributes to the overall KPIs for repair and void costs per property.

12. Consultation.

12.1 The Resident Forum has also reviewed this policy and had an opportunity to input into its content.

13. How will the Policy be implemented?

13.1 This policy crosses all of our service areas. All senior managers, but particularly those in the Operations directorate, are to be aware of the importance of implementing appropriate procedures to support the application of this policy.

14. Review.

14.1 This policy will be reviewed at least every three years.

15. Legislation and Other Documents.

15.1 Key documents referenced within the policy are:

• Tenancy Agreement

• Leaseholder Agreement

• Compensation Policy

• Complaints Policy

• Tenant Handbook

• Repairs Handbook – Your Quick Guide to Home Repairs and Maintenance

• Leaseholder's Handbook – Guide to Your Tenancy

• Responsive Repairs and Voids Maintenance Policy