Tenant & Landlord Schemes

Helping Tenants Pay their Rent – Local Housing Allowance Scheme

We have a scheme to receive Local Housing Allowance (LHA) payments on behalf of tenants and make immediate payments to landlords. This means that LHA is only used for the purpose of paying rent. The benefit for both tenant and landlord is that rent payments are guaranteed and the scheme ensures the security of the tenancy for both parties.

To use this scheme, a tenant has to become a member of Swan Credit Union and the landlord also has to agree to take part. The tenant completes an authorisation form for the Credit Union to set the account up and a Payee Declaration to instruct the local council to make the payments to us.

There is no cost to the tenant and the landlord pays a small fee to cover the administration of the scheme.

Trisha Arathoon of Zest Residential commented:

Since using the Credit Union Scheme, I have found that relations with my tenants are so much better. One of the main factors is that I’m not now calling them to check the rent will be paid or chasing them if it’s not in on the day it is due. They don’t need to worry about bringing it to the office or making the journey to the local bank to pay it over the counter. Just the removal of the worry factor alone is worth the £5.00 per month, let alone the time saved and the cost for petrol and telephone calls.

It is a part of my terms and conditions of letting property to benefit claimants. If they are not prepared to use this facility, I’m not prepared to accept them on the property. Most applicants are more than happy because they want the responsibility to be removed, particularly as LHA payments can no longer be paid directly to the landlord, so this scheme is not only a huge benefit to me, it makes a significant difference to the tenant.

All in all, I’ve increased my business by being able to offer this protection both to my own properties and those which I manage. There is a huge market out there for Local Authority tenants and if managed properly, and by using this scheme, it should avoid the headaches and problems that we’re often used to hearing.

To join the scheme, or for further information, please contact us.

Swan Community Bank is a trading name of Swan Credit Union which is authorised by the Prudential Regulation Authority (PRA) and regulated by the Financial Conduct Authority.

Swan Credit Union Ltd. Our registered address is Foundation House, The Square, Wolverton, Milton Keynes MK12 5HX. (Company no. 417717).