Hi Emma,
We try and manage debts that residents owe promptly. We mitigate this risk by keeping track of the monthly payments and if someone is behind then we write to them. Obviously, it is a bit too late for you to do this. We do have a resident who was very poorly and is in rent arrears, and we have asked them to pay a little bit more each month to pay this off. It would not look favourable on a charity that provides affordable accommodation to those who are most in need to start involving debt collectors. It would be advisable to get in touch with the individual as soon as possible as offer support and help through the local council, and suggest even reaching out to social services.
The chances and reality is that if they couldn’t afford the rent, and were a beneficiary of the charity then their estate will be very minimal and may not have the funds to pay back any rent debt.
We advise our residents to provide us with next of kin details, and to put in place a Will. There is usually someone appointed as an executor or working in a professional capacity who can help if someone has died intestate. Debts can be recovered from an estate, but only if there are funds available.
I’m not sure about insurance to recover debts. having an eviction policy if rent payments are not paid may be the solution.
You will not be able to legally appoint someone as another persons POA. Only that person can give instructions to appoint a POA. I would be very mindful of this, especially as most residents could be categorised as financially vulnerable. If a resident has capacity, and is struggling with their finances or health and would like to appoint an attorney then your safest and best route is to suggest to them that they meet with a solicitor and take independent advice. If they do not have capacity, then a deputyship order can be made but this is costly, lengthy, and time consuming. The council pay be able to assist you. It is important that any instructions to make Lasting powers of attorney come from the individual and not their proposed attorney, otherwise this could be interpreted as undue influence or coercion to gain control of a vulnerable person’s finances.
Solicitors can act as attorneys in a professional capacity, but they may charge a high fee and by the hour. Your best bet is to discuss this with the individual in the first instance and put them in touch with a solicitor who can help or give advice.
In hindsight, these situations can be avoided by having plans, procedures, and recommendations in place for residents to consider.
I hope this helps you to some degree. It might be worth phoning a local solicitor – where are you based?