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Bond Guarantee Scheme

The Bond Guarantee Scheme helps people who are homeless or threatened with homelessness to access a privately rented home.

How does it work?

The scheme provides landlords with a written guarantee for a deposit up to the value of one month's rent to a maximum of £500. It can take approximately five to seven working days to complete the process. The bond must be agreed and finalised before a tenant can move into a property as bonds will not be issued retrospectively.

What are the benefits?

This scheme is legally binding and an agreement is entered into by three parties:

  • The landlord

  • The tenant

  • Erewash Borough Council

This avoids the need for an up-front payment and allows the landlord to claim for any damage caused by the tenant (excluding fair wear and tear) during the initial period of the tenancy, usually six or twelve months. The applicant is encouraged to save money to enable them to provide a deposit if required by the landlord after the initial tenancy period.

The applicant will be re-charged by us for any costs paid to the landlord on their behalf. 

Who can apply?

To be eligible for the scheme you must:

  • Be homeless or threatened with homelessness and this cannot be prevented

  • Have a local connection to Erewash

  • Be entitled to housing benefit or on a low income and unable to afford a deposit

  • Not be entitled to a deposit refund on the property you are currently living in

  • Not have lost your current accommodation as a result of damage to the property

  • Not have had a previous bond with the council that has been claimed on and you have failed to re-pay.

What must I do?

Step 1

Contact the Housing Options Team on 0115 907 2244 to check if you are eligible and arrange an appointment if appropriate. You will be advised what information you will need to bring with you.

Step 2

Find and view a suitable private rented property within the Erewash area. Check that the landlord is willing to accept the Bond Guarantee Scheme. If you are happy with the property and it is affordable you will need to ask the landlord to complete the forms, which will be given to you at the initial appointment and you should return these forms to your Housing Options Officer.

Step 3

The property may then be inspected by Environmental Health to ensure that it complies with health and safety regulations. Once this has been carried out you will be notified of the outcome of the inspection.

Step 4

When you have received confirmation that the Bond has been finalised you can make arrangements to move in. Please note that bonds will not be agreed retrospectively.

Step 5

You will need to provide a copy of the signed tenancy agreement to the Council within seven days of moving in, otherwise your bond will not be valid.

If you require any further information about the Bond Guarantee Scheme please contact the Housing Options Team on 0115 907 2244.

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