Delta Housing Limited (202422440)

Background

1. In January 2024, the resident complained that the landlord was pursuing her for rent arrears after she had moved out of the property in November 2023. She said the landlord had agreed to accept two weeks’ notice, and she disputed the arrears. She asked the landlord to clear the outstanding balance.

What the complaint is about

2. The landlord’s handling of the resident’s rent arrears at the end of the tenancy.
3. The landlord’s handling of the complaint.

Our decision (determination)

4. We have found:
   1. Reasonable redress in the landlord’s handling of the resident’s rent arrears at the end of the tenancy.
   2. Reasonable redress in the landlord’s handling of the complaint.

We have not made orders for the landlord to put things right.

Summary of reasons

The landlord’s handling of the resident’s rent arrears at the end of the tenancy.

5. The landlord applied the tenancy terms and its approach to the notice period appropriately. While its initial explanations were unclear, it acknowledged this and put matters right by offering proportionate compensation and identifying service improvements.

Handling of the complaint

6. The landlord did not identify the complaint at the earliest opportunity and delayed its responses. It also failed to address all complaint points at stage 1. However, it acknowledged these failings, apologised, offered proportionate compensation, and identified service improvements.

Putting things right

Where we find service failure, maladministration or severe maladministration we can make orders for the landlord to put things right. We have the discretion to make recommendations in all other cases within our jurisdiction.

Recommendations

Our recommendations are not binding, and a landlord may decide not to follow them.

Our investigation

The complaint procedure

What we found and why

The circumstances of this complaint are well known by the parties involved, so it is not necessary to detail everything that’s happened or comment on all the information we’ve reviewed. We’ve only included the key information that forms the basis of our decision of whether the landlord is responsible for maladministration.

What we did not investigate and why

7. The resident raised concerns about anti-social behaviour (ASB) during her tenancy. These issues were not considered by the landlord as part of this complaint. The landlord treated these matters as a separate complaint, which is being investigated under a different case (202404201). As such, we have not investigated these issues as part of this report. References to this complaint are included for context only.
8. The resident said that the disputed rent arrears affected her mental health. It would be fairer, more reasonable and more effective for the resident to make a personal injury claim for any injury caused. The courts are best placed to deal with this type of dispute as they will have the benefit of independent medical advice to decide on the cause of any injury and how long it will last. We’ve not investigated this further. We can decide if a landlord should pay compensation for distress and inconvenience.

What we did investigate

9. The tenancy agreement required the resident to give at least four weeks’ written notice to end the tenancy and to pay all rent and service charges up to the tenancy end date.
10. On 12 October 2022, the landlord advised the resident in writing that the notice period would run from the Sunday following receipt of notice. On 20 October 2023, the landlord told the resident by email that it would not charge rent for the final two weeks of the notice period if she returned the keys within the first two weeks, left the property clear, and no recharges would be applied.
11. It is not disputed that the resident gave her notice on 25 October 2023 and returned the keys on 5 November 2023. This was within the first two weeks of the notice period. The landlord accepted the notice date and confirmed the tenancy ended on 26 November 2023. The evidence indicates that the resident expected a refund for the final two weeks’ rent.
12. The landlord initially charged rent for the full notice period before amending the account. It charged rent for the first two weeks (weeks commencing 30 October 2023 and 6 November 2023) and refunded the final two weeks (weeks commencing 13 November 2023 and 20 November 2023). This approach was consistent with its earlier advice.
13. At the start of the notice period, the resident’s rent account showed a credit balance of £29.08. The landlord then charged the resident rent for the full notice period before refunding the final two weeks’ rent. Following these adjustments, the account showed a debit balance of £246.62.
14. The landlord’s final rent calculation was not clear to the resident at the outset. However, the landlord explained the charges and refund in its stage 1 complaint response dated 7 February 2024 and confirmed how the final balance was reached. In its stage 2 response on 16 April 2024, it also signposted the resident to the Council regarding any council tax concerns and offered support.
15. We find the landlord acted in line with the tenancy agreement and its stated approach. It applied the arrangement appropriately and provided a clear explanation through the complaint process.
16. However, the landlord accepted that its initial explanations of how it applied rent charges and refunds during the notice period were not clear. This was a service shortfall. It also said it would take learning from the case, including improving staff training. The landlord took steps to put matters right by waiving the outstanding balance and offering compensation for complaint handling failings.
17. Having considered this, we consider that the landlord offered reasonable redress. This reflects the service shortfall identified, the landlord’s acknowledgement of the issue, the steps it took to put matters right, and the level of compensation offered, which is in line with our compensation guidance. Our finding of reasonable redress is based on the landlord waiving the outstanding rent of £246.62.

18. The landlord’s complaints policy is in line with our Complaint Handling Code (the Code). The Code states that a resident does not need to use the word ‘complaint’ for their concerns to be treated as such. The landlord did not recognise the resident’s expression of dissatisfaction on 6 December 2023. The resident said the landlord had charged her rent incorrectly during her notice period and raised concerns about ASB and possible criminal activity in the area. As a result, the landlord missed an opportunity to consider and respond to these issues combined at an earlier stage.
19. The landlord’s complaint policy says that it should acknowledge complaints within five working days and provide a stage one response within 10 working days and a stage two response within 20 working days. This is in line with the Code.
20. The landlord took 15 working days to issue its stage 1 response and 44 working days to issue its stage 2 response, exceeding the timescales set out in its complaints policy and the Code. Overall, it took more than four months from the resident’s initial expression of dissatisfaction to issue its final response. This caused avoidable time and trouble, as the resident waited longer for a resolution and spent additional time pursuing updates.
21. In its stage 2 complaint response, the landlord accepted that it had focused too narrowly on the amount of rent owed at stage 1. It acknowledged that this contributed to the resident escalating the complaint and feeling that her concerns had not been properly considered.
22. In its stage 2 response, the landlord apologised for the delays and offered £200 compensation for the time and trouble the resident experienced. This was in line with our compensation guidance for complaint handling failures where service failings have had an adverse impact on a resident and was proportionate in the circumstances. The landlord also committed to using the complaint to identify learning, particularly in relation to early communication and progressing complaints more effectively.
23. Taking account of the complaint handling failings identified, the landlord’s apology, its offer of compensation, and its commitment to learning, we find that the landlord offered reasonable redress. This reflects the failings identified and the steps taken to put matters right. Our finding of reasonable redress is based on the landlord making the payment of £200 to the resident.

Learning

24. The landlord could consider the importance of adhering to complaint handling timescales and agreeing extensions with residents where delays are unavoidable, in line with the Code.

Knowledge information management (record keeping)

25. The landlord could consider ensuring that lessons are learned from its failure to recognise and record the resident’s initial expression of dissatisfaction as a complaint.
26. The landlord could consider ensuring that all complaint points are investigated at the earliest stage to avoid unnecessary escalation and support fair and effective complaint resolution.

Communication

27. The landlord could consider ensuring that it clearly explains to residents how notice periods, rent charges, and any discretionary arrangements will be applied.