Rent Review

Rent Management Policy

 

Rent Management Policy

Rent assessments for tenants eligible for a rental subsidy are based on the Department of Communities and Justice Rent Policy. Please refer to the DCJ website for further information: https://www.facs.nsw.gov.au/housing/policies/charging-rent-policy

Rent Review and Rent Increase Policy

The market rent for your property is stated on your Residential Tenancy Agreement. This means that rent can increase or decrease during your tenancy as long as the amount charged is not greater than the market rent.

Metro conducts a review of all tenant’s income every six months to confirm their continued eligibility for a rental subsidy and assess the rent payable.

It is a condition of your tenancy that you must advise Metro of any changes to income or household composition within fourteen days.  Failure to do so may put the tenancy at risk.   

Where income has reduced, rent will be reduced immediately. Where income has increased, rent will be increased 14 days later in the following circumstances:

• You are returning to the workforce after a short absence or break of less than 6 months

• You are moving between jobs

• You have increased your hours of employment or had a wage increase

Metro will grant tenants a “grace period” of 60 days before rent increases take effect where:

• Your income has increased because you have entered the worforce for the first time or

• You have returned to the workforce after an absence of more than six months

If you do not advise Metro of any increase in your income, then any applicable rent increase will be backdated to commence from the date your income increased.  

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How Is The Rent Being Calculated? 

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How Do I Know What Percentage I'll Be Charged? 

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Fluctuating Incomes

Tenants that have fluctuating incomes because they work on a casual or sessional basis will be required to submit income details on a quarterly basis if your income varies by more than 20% from payday to payday.  

Rent assessments will be based on an averaging of income over a 13 week period.

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Rent Review Process

 

1. All tenants except those that have commenced a new tenancy or whose rent has been re-assessed in the previous six weeks will be sent a dated Rent review letter requesting you to supply evidence of the income of all household members within 30 days.

2. Rent review notice letters/requests for return of supporting documents are sent out to all tenants on 20 March and 20 September each year, giving 60 days notice that (where applicable) rent increases will take affect on the first Monday in June and December. 

3. The rent review notice letter states the market rent – this is rent that tenants will pay if they do not submit documents to support eligibility for a rental rebate;  or the most tenants will pay even if the income based rent assessment calculates a higher rent.

4. Tenants must supply written verification of all income sources.  The Income Statement for Housing Authorities form provided by Centrelink is sufficient proof of income for tenants who receive a full or part pension/benefit or allowance. 

5. Tenants can give authority for Metro to confirm their Centrelink income by signing the Income Confirmation Scheme Consent Form.

6. Tenants that are in receipt of wages will be required to have their employer sign a declaration form stating their income for the previous 26 weeks.  Alternately you can provide an employer issued wage slip which shows year to date income details.

7. Tenants that are self employed need to supply a copy of their most recent taxation return or profit and loss statement issued by an accountant.  Allowable business deductions are outlined in the Housing NSW rent assessment policy.

8. A copy of the Rent Assessment calculations and advice on the commencement date for any applicable rent increase will be sent to you within seven days of your documents being received.

9. Tenants who do not provide income details for all household members by the due date will be charged market rent 60 days after the Rent increase notices have been sent out.

10. Tenants who provide false information or fail to declare additional household members on the Rent Review Declaration form will no longer be eligible for a rental subsidy and will be charged market rent.  The tenancy may also be terminated on the basis of “rental fraud” subject to a review of the circumstances.

Metro may make further enquiries to establish if a tenant has committed Rental Fraud.  This may include a request for banks statements or other financial documents.