Applications for Income Related Rent
When a prospective tenant applies for social housing, details of their assessable income and additional occupant contributions are recorded during their assessment for social housing. These details are used to calculate an indicative weekly rate of Income Related Rent.
An indicative rate of Income Related Rent is a rate based on the prospective tenant and their partner's (if any) circumstances at the time they complete the assessment.
The indicative rate of Income Related Rent is not provided to the housing provider.
The rate may change when the prospective tenant is placed into a property if their circumstances have changed since applying. Prospective tenants are obliged to advise of changes in circumstances while they are on the register.
Calculating an indicative rate of Income Related Rent for a prospective tenant:
- provides an opportunity to identify the most appropriate housing option for a prospective tenant
For example, if the indicative rate is greater than the lower quartile market rent in the prospective tenant's preferred location, they may be better renting in the private market - ensures all current assessable income and additional occupant contribution details required are held and
- allows us to advise the prospective tenant what further verification is required to confirm the rate at placement
The rate of Income Related Rent will be confirmed at placement, when MSD is satisfied that:
- a prospective tenant has declared their correct income details
- a correct rate of Income Related Rent can be calculated and
- the client wants to apply for an Income Related Rent
The housing provider is then notified of the rate of Income Related Rent.
The client is eligible to pay Income Related Rent from the commencement of the tenancy (the start date).
