Why have a Bond Guarantee Scheme?

The Bond Guarantee Scheme has been set up by Erewash Borough Council to help people who cannot afford to pay the large lump sum of money required by landlords at the beginning of a tenancy. By providing financial assistance, Erewash Borough Council can help people to access private rented accommodation and prevent homelessness.

How does it work?

Erewash Borough Council can provide a written bond guarantee to the landlord in place of a cash deposit. This means that if a tenant owes money during the life of the guarantee for damage, loss, or rent arrears up to a maximum of one calendar month (but no greater than £500), the landlord will be reimbursed.

Who can use the scheme?

You will be considered for the Bond Guarantee Scheme if you are:

• Homeless or threatened with homelessness
• On state benefits/earning a low income and have insufficient savings to pay for the deposit yourself
• Willing to repay any sum paid by the council under the guarantee.

Finding a property

The applicant needs to find suitable accommodation to rent and a landlord who is willing to participate in the Bond Guarantee Scheme. Details of available properties can be found in estate agents, in the local papers and on the internet. A list of local estate agents can be obtained from the Housing Options Section. We can help if your having difficulties.

The property should be in the borough of Erewash, however, we may consider accommodation found in neighbouring districts.

What next?

When a property has been found, a Pre Tenancy Determination (PTD) must be completed and returned to Erewash Borough Council. This is then sent to the Rent Service to check the rent level is fair and that the maximum amount of housing benefit payable on the property covers the rent being charged by the landlord.

A Housing Options Officer will then go through a financial statement with you, and if it is found to be affordable, Erewash Borough Council can go ahead with the Bond Guarantee Scheme and the applicant can sign the tenancy agreement.

Will there be a cost for the scheme?

If the landlord makes a claim on the deposit guarantee due to damage caused to their property or for rent arrears, the tenant may be asked to repay the sum to Erewash Borough Council.

If you require any further information about the Bond Guarantee Scheme please contact:

Housing Options Section
Erewash Borough Council
Town Hall
1 Wharncliffe Road
Ilkeston
Derbyshire

Telephone: 0845 907 2244 extension 3590 or email: homelessness@erewash.gov.uk