Systemising your Business for Success and Navigating the LHA minefield. Why Bother Systemising?

1. LHA Tips, Tricks & Systems
John Paul
21st May 2012

2. Typical LHA tenant?

3. LHA tips and Tricks
•Getting housing benefit paid direct
•Vulnerability route
•Securing a tenancy
•How quickly can I get paid?
•Overpayments – Beat them every time
•Getting paid on 2 houses
•Get paid the tenants other benefit direct
•Over 35 single room rate update

4. Getting Paid Direct - Vulnerable
•Debt – CCJ, Defaults, High APR loans, unable to open
bank acc, rent arrears, Experian / Equifax report
•Medical – Support network, Doctors letter, Drug or
alcohol issues
•Inability to Communicate
•Fleeing Domestic Violence
•Leaving care or prison

5. Getting Paid Direct – Securing
a tenancy
•From 1 April 2011 the DWP are widening this discretion by
amending Regulation 96(3A) so that LAs can make payment direct
to the landlord where they consider that it will assist the customer
in securing or retaining a tenancy.
•For a tenancy to be secured or retained it is implicit that the rent
should be affordable to the tenant. i.e. NO TOP UP
•This is still DISCRETIONARY

6. How quickly can I get paid
•14 days from date that all the information was handed in
•Do everything for them, complete forms, hand in info &
get receipts, phone DWP
•It’s NOT discretionary, payment is Mandatory
•Mal-administration – www.lgo.org.uk, rates your council

7. Overpayments
2010 -17 Appeals, won all 17 with 5 different councils
2011 -25 Appeals, won all 25 with 3 different councils
2012 –12 Appeals, won all 12 with 2 different councils
What is an overpayment?
•Normally occurs when a tenant leaves without notice
•Council can chase either party IF no one is to blame
•AST, Contract between council and claimant, protection from
Eviction Act 1977
•Residential Tenancies Act 1999
“Quiet and peaceful enjoyment”
“Unnecessary and regular visits unannounced or otherwise can be
classed as harassment”

8. Getting paid on two properties
•Up to a maximum of 4 weeks or as soon as a new tenant moves in
•Let the Council know otherwise an overpayment will occur
•Ideal if tenant want to move out quickly
•Do not force tenant to remain in property
•Need good enough reason for Housing Benefit Overlap
•Tenant MUST apply not the landlord – Due to certain questions that
only the tenant can answer

9. Get the tenants other
benefit paid direct
•Third party payments
•Tenant needs to be 4 weeks in arrears over a
period of no more than 8 weeks
•Maximum of £3.30 per week
•Discretionary, not mandatory
•We have had mixed success – Tenants not happy having
their benefit taken away from them

10. Over 35 single room update
•As of January this year any one under age of 35 qualifies
for shared room rate
•DCC increase DHP from 175k to 350k
•DHP covers:
•Shared room rate shortfall
•Where LHA does not meet the rent
•Reductions in HB following changes in April 2011
•Non Dependant deductions
•Income tapers

11. Systems
•7 Branches
•1500 Properties - under full management
•325 Properties - regular let only
•32 Staff
•2 More branches opening this year
•46 Sold Houses in 2010
•49 Sold Houses in 2011
I don't get involved in the day to day
running of the business

12. What is meant by a system?
•A set of rules on how your business works so you get
the same result every time
•Rules must be how you want your business to work
not how it actually works
•Manual, Training, Auditing, Review, Evolve

13. Why systemise?
Why bother?
• Everyone knows their job = Accountability
• Happier Staff = Get more from your staff
• Customer service = Set standards = Profitability
• Free up time for family, holidays or expand business
• Your company is worth more to potential buyers
“Implementing business systems allows for managed
and strategic growth to occur”

14. Where do I start?
• Write a list of every function your business carries out
• Go through every function, writing an idiots guide:-
• What to do,
• When to do it,
• How to do it,
• Who is responsible (make it role specific)

15. What will be achieved in the
Procedure
Whose responsible - Accountability
Additional info to be handed out
Forms are built into the
procedures
Time bound and accountable

16. Form no. – All linked

17. Additional information that is handed out to
landlords enquiring about our services
It sets out the reasons why to use
Castledene
Its consistent throughout the branches
Landlords know what to expect each and
every time

18. I'm a small business will it help?
• Yes – Any business, any size will benefit
• Hit by a bus scenario
•Does your partner know what to do
•Where is all the information kept
• Is it expensive to do - No,
• Is it time consuming - Yes
• Is it worth it – YES
• You can not be a success WITHOUT systems

19. Further Reading
The E Myth by Michael Gerber
The Richer way by Julian Rich
The Toyota way by Jeffrey Liker
Customer Mania by Ken Blanchard
Raving Fans by Ken Blanchard

20. Any Questions?

21. South Shields
Seaham
Bishop Auckland
Easington
Halifax
Manchester
Belfast
Hartlepool – COMING SOON
johnpaul@thecastledenegroup.com