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 | (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. | (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
- Changes in rent (community housing) section 93 Public and Community Housing Management Act 1992
- Changes in rent (Kāinga Ora) section 73 Public and Community Housing Management Act 1992
- Rent increases section 24 Residential Tenancies Act 1986
