Agreed process for setting the market rent rate

The market rent rate for a social housing property is set by the housing provider using an agreed process.

In setting the appropriate market rent rate a housing provider will consider:

• the benchmark property rate (lower quartile of rents for properties of a similar type, size and location)
• the condition of property and level of amenities and
• any special property features

Generally, social housing properties will be in the lower quartile of rents for properties of a similar type, size and location.

The housing provider will look at similar properties in the area and what other landlords are charging in rents for them.

They may consider:

• advertised private rents, such as through adverts by real estate agencies and private rental companies
• what other social housing providers are charging
• TradeMe data (TradeMe holds a record of the price of rentals listed on the website)
• tenancy bond data (actual bonds lodged by private landlords with the Ministry of Business, Innovation and Employment)

Note that the housing provider may also hold benchmark rents for particular groups of properties with similar characteristics depending on the location, property type and size.

The housing provider may look at whether the property has any special features that require an additional investment by the landlord and determine an additional amount.

Generally, a 'special features' rate is considered when modifications have been made to a property, for example for mobility, access or a garage. These modifications will have required an investment by the landlord that might not otherwise be reflected in the benchmark rent.

For more information see:

• Market rent rate
• Market rent rate reviews