Tenant has difficulty managing their finances

A tenant may not be able to sustain alternative housing if they have difficulties managing their finances.

To determine if the tenant has difficulties with this, MSD needs to consider:

• their debt levels of all debt not just MSD debt, and the impact this has on being able to use their remaining income for essential expenses
• essential outgoings that impact on the tenant being able to sustain alternative housing (for example unfunded medications)
• level of rent arrears over the last 12 months, for example rent arrears are in excess of 2 months and are mounting on a daily basis or the tenant has rent arrears and no ability to repay debt
• any health impacts that are due to stress of financial position
• addiction issues - resulting in all or the majority of the tenant's income supporting their addiction

A tenant and their household may not be able to find a suitable property due to difficulties in financial management caused by:

• community or cultural expectations of financial contribution, for example tithing, sending money overseas
• debt due to having to purchase necessities, e.g. washing machine, dryer, fridge, freezer
• cannot afford essential car repairs
• partner leaving with their money
• bad investments resulting in debt
• acting as a guarantor for someone who did not repay the debt and now the tenant is liable
• addiction problem e.g. drug, alcohol or gambling which means the money is not available for essential living expenses
• cannot budget or bad financial management
• change in employment circumstances, for example have become unemployed
• not having enough money for food after paying essential costs

If a tenant has difficulties in financial management, it may mean they cannot cope emotionally or have poor health due to stress. If they have high debt, they may not have enough income to meet all their financial commitments.