East Renfrewshire Council to write off irrecoverable rents

Cabinet members approved the move, part of a biannual process designed to target recoverable arrears more effectively, at a meeting this week.

The irrecoverable rents can be pursued and recovered in future if additional information, or opportunities, arise.

Council leader Tony Buchanan told councillors: “It would cost more in some circumstances to chase it up.”

A report to the council’s cabinet stated writing off the historic debts will have “no net impact on the council’s accounts as provision has been made for the debt, in full, in previous years”.

Debt can be written off after two years, if recovery processes have been exhausted, or of it’s a small balance under £75.

The process can also be carried out if the debtor has died and has no estate or is in a nursing home and there is no likelihood of debt being settled.

“A significant write-off occurs when the council has exhausted the debt collection process,” the council report states. “This consists mainly of rent arrears of former tenants.

“The council has a thorough process to address arrears for current tenants and this performance has improved significantly in previous two years.

“However the ability to recover this debt becomes more difficult once the tenancy has ended.”

It adds: “The write-off” process is designed to ensure that resources are targeted effectively to address the arrears that can be recovered.

“Once written off the debt can still be pursued if required.”

The council says around £11.5m of rent is due to be received from tenants in the current year, with the write-off sum representing around 0.65 per cent of that total.