Contents
Income Related Rent : Contents

Housing provider actions new rent calculated

When a housing provider receives notification that the client has a new rate of Income Related Rent calculated, they must:

  • review the amount of rent charged
  • change the amount of the rent charged to the rate of Income Related Rent calculated and notified, unless:
    • in their opinion it would not make any material difference to the rent currently charged or
    • the rate is higher than market rent rate for the property, in which case they may only charge up to market rent rate
  • work out which is the correct notice period to give the client, which is either the 14-day notice period or the 60-day notice period
  • advise MSD that they are changing the amount of the rent charged and the new rent effective date and
  • notify their tenant about the change to the amount of rent, the new amount rent charged and the new rent effective date

Generally, the rate that the housing providers charge as weekly rent will be the same as the weekly calculated rate of Income Related Rent.

For more information see:

Changes to the Tenancy Agreement

The housing provider can set up the Tenancy Agreement so that it does not need to be amended where a housing provider makes a change to the rent.

Clients living in social housing properties are made aware that their rent can change following any change to their circumstances or their annual review of Income Related Rent when they sign the Tenancy Agreement with the housing provider.

Kāinga Ora currently use this form of Tenancy Agreement, community housing providers may also choose to do so.

Calculated rate of Income Related Rent is equal or higher than market rent

If the rate of Income Related Rent is calculated at a rate that is equal to or higher than the market rent, the housing provider must charge the rent at a rate no greater than the market rent rate for the property.

Housing provider actions new rent for clients paying rent at the market rent rate

A housing provider can change a client's rent when the client is paying rent at the market rent rate, according to their own policies, and within the limits of the Residential Tenancies Act 1986. The rent charged cannot be greater than the market rent rate at the time.

For more information see:

Housing provider gives a 60-day notice period

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
  • Increase in rent due to change in tenant's circumstances (Kāinga Ora) 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
  • Rent increases section 24 Residential Tenancies Act 1986
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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.

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 60-day notice period ensures that a client gets at least 60 days' notice of an increase in their rent. The 60-day notice period will apply to all increases of rent where the 61-day period is not applicable.

This happens: