Liability for Income Related Rent debt
The signatory(s) on the tenancy agreement are liable for any Income Related Rent debt created for any period during the tenancy, not the applicable person(s).
More than one signatory on the tenancy agreement
When an Income Related Rent debt is established for a period when there was more than one signatory on the tenancy agreement (that is, joint tenants) the tenants are jointly and severally liable for that debt. This is regardless of whether both or all tenants are current tenants at the time the debt is established.
Note jointly and severally means that joint tenants are collectively and individually responsible for the debt - repayment of the debt does not have to be shared equally.
When one of the signatories in a joint tenancy relinquishes their tenancy at a later date (that is, they are no longer a signatory on the tenancy agreement), that tenant will not be liable for any debt created after they have been removed as a signatory on the tenancy. Debt from that point belongs to the remaining tenant(s) on the tenancy agreement.
Note due to systems restrictions, the debt will usually be split equally and recovered from all clients individually.
For more information see:
Legislation
- Increase in rent due to change in tenant's circumstances (Kāinga Ora housing) section 74 Public and Community Housing Management Act 1992
- Increase in rent due to change in tenant's circumstances (community housing) section 94 Public and Community Housing Management Act 1992
- Recovery where rate of rent too low section 127 Public and Community Housing Management Act 1992
- Recovery of debt where agency is Ministry section 128 Public and Community Housing Management Act 1992
