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Income Related Rent : Contents

Examples of notice periods for housing provider to increase the rent

A housing provider must always issue notice to clients when they are increasing the rent.

Below are examples of how these notice periods work.

Note these examples assume that the housing provider will send written notice to change the rent by post within 2 days of receiving notification from MSD, however this may not always be the case. These examples also assume that the service period is four working days.

Example 1 - Kāinga Ora tenancy

Anna starts her new part-time job and notifies MSD of the change on 26 June 2023.

Her Income Related Rent is not reassessed until the end of the next consecutive 8-weekly anniversary of the tenancy start that occurs after she has maintained the employment for at least 8 weeks.

The next consecutive 8-weekly anniversary of her tenancy start date is 11 September 2023. This is the date at which her change in circumstances is determined to be permanent.

MSD activate and notify the housing provider of a new rate of Income Related Rent.

Anna is paying rent to Kāinga Ora weekly on a Wednesday (rent charge date).

In this situation, the new rent takes effect from the next rent period after the 61-day period. This is because the service period and the 14-day notice period required to be given by the housing provider to increase a rent is within the 61-day period.

26 June 2023

11 September 2023

12 September 2023

13 September 2023

12 November 2023

15 November 2023

Anna starts part-time work

Next 8-weekly anniversary of the tenancy start after 8 weeks of employment.

Permanent change in circumstances determined and Income Related Rent is reviewed.

Housing provider notified by MSD that the rate of the Income Related Rent has increased due to a change in circumstances on 11 September 2023.

MSD notify Anna of the new rate of Income Related Rent.

Housing provider notifies the tenant of the change to their rent and the rent effective date the new rate will apply from.

End of 61-day period calculated by CMS (+ 1 system day) - new rent takes effect from the earliest rent effective date.

The earliest rent effective date is the Wednesday following the 61-day period.

CMS will calculate the 61-day period + 1 system day as 11 September 2023 to 12 November 2023.

Example 2 - Community housing provider tenancy

Debbie starts a part-time job on 26 June 2023. On the 17 July 2023 Debbie informs MSD that she started work.

MSD activate and notify the housing provider of a new rate of Income Related Rent once the change in circumstances has been determined to permanent (ie at the next 8-weekly anniversary of the tenancy start after she has maintained the employment for at least 8 weeks).

Debbie is paying rent to a community housing provider weekly on a Tuesday (rent charge date).

In this situation, the new rent takes effect from the next rent period after the 61 day period. This is because the 14 day notice period required to be given by the housing provider to increase a rent is within the 61 day period.

Debbie is reminded of her obligation to advise of changes in her circumstances within 14 days of the change.

26 June 2023

17 July 2023 

4 September 2023

5 September 2023

6 September 2023

5 November 2023

Change in circumstances occurs

MSD notified of the change.

Next 8-weekly anniversary of the tenancy start after 8 weeks of employment.

Permanent change in circumstances determined and Income Related Rent is reviewed (as change occurred between 8 and 16 weeks before the current anniversary of the tenancy start date.

Housing provider notified by MSD that the rate of the Income Related Rent has increased due to a change in circumstances on 4 September 2023.

MSD notify Debbie of the new rate of Income Related Rent.

Housing provider notifies the tenant of the change to their rent and the rent effective date that the new rate will apply from.

End of 61-day period calculated by CMS (+ 1 system day - rent takes effect from this day.)

.

CMS will calculate the 61 day period + 1 system day as 4 September 2023 to 5 November 2023.

Example 3 - Community housing provider tenancy

On 1 November 2023 MSD data match with Inland Revenue picks up that Bryan started work a part-time job on 12 July 2023.

MSD activate and notify the housing provider of a new rate of Income Related Rent at the next 8-weekly anniversary of the tenancy start after 1 November 2023.

Bryan is paying rent to a community housing provider weekly on a Thursday (his rent charge date).

In this situation, the new rent takes effect from the next rent period after the 14 day notice period and service period. This is because the 14 day notice period required to be given by the housing provider to increase a rent, is outside of the 61 day period.

A debt may be established by MSD for the period that Bryan should have had a higher rate of Income Related Rent calculated.

16 July 2023

7 November 2023

12 November 2023

20 November - 5 December 2023

11 December 2023

Change in circumstances occurs

Housing provider notified by MSD the rate of the Income Related Rent has increased due to a change in circumstances on 16 July 2023

MSD also notify Bryan of the new rate of Income Related Rent

Housing provider notifies the tenant of the change to their rent and the rent effective date that the new rate will apply from

14-day notice period

(and the service period to receive the notice of increase)

New rent takes effect from the

earliest rent effective date

(following the 14-day notice period)

17 July - 15 September 2014 (61 day period)

16 September - 10 December 2023 (period for which debt may be established by MSD)

Example 4

Margaret started working increased hours from 12 May 2023. On 15 June 2023, Margaret phones MSD with her new income details. MSD activate and notify the housing provider of a new rate of Income Related Rent.

Margaret is paying a rent to Kāinga Ora fortnightly on a Thursday (rent charge date).

In this situation, the new rent takes effect from the next rent period after the 14-day notice period. This is because the 14-day notice period required to be given by the housing provider to increase a rent, is outside of the 61-day period.

A debt may be established by MSD for the period Margaret should have had a higher rate of Income Related Rent calculated.

12 May 2023

18 June 2023

20 June 2023

20 June 2023 - 15 July 2023

24 July 2023

Change in circumstances occurs

Housing provider notified by MSD the rate of the Income Related Rent has increased due to a change in circumstances from 12 May 2023.

MSD also notifies Margaret of the new rate of Income Related Rent.

Housing provider notifies the tenant of the change to their rent and the rent effective date that the new rate will apply from.

14-day notice period

(following the service period to receive the notice of increase)

New rent takes effect from the earliest rent effective date

(following the 14-day notice period)

13 May - 13 July 2023 (61-day period)

14 July - 23 July 2023 (period that debt may be established for, by MSD)

Legislation

Rent periods are either weekly or fortnightly (as agreed to in the Tenancy Agreement).

Housing providers must give tenants at least 14 calendar days' notice of any increase in their rate of Income Related Rent due to a change in their circumstances. This is to ensure that the tenant has time to adjust their circumstances to pay the higher rate of rent.

The 14-day notice must be given before the effective date. It could be within the 61-day period, or in addition to it, depending ...

The rent effective date is the one-off date on which an increased rate of Income Related Rent is charged.

The rent effective date is aligned with the next charge date.

The 61-day period ensures, when a tenant has a change of circumstance, any increase in their Income Related Rent cannot take effect until at least 61 days after the date that the change in circumstances occurred (regardless of when the change of circumstance was notified or discovered). The 61-day period is counted from the day after the day that the change of circumstances occurred, and the 14-day notice period is ...

This is the date the housing provider charges the rent. It does not change; it is a regular day of every week or fortnight.

Note that the rent effective date of an increase in rent is aligned with the charge date.