PolicyRent Account ManagementSDMS ID Number P2012/0039-001SDMS Title Rent Account Management – Policy – P2012/0039-001Effective From 17 March 2015Applies to Tenants who pay their rent to Housing Tasmania.Custodian Housing Operations, Housing TasmaniaSummary This policy outlines how Housing Tasmania manages public

housing rent accounts.Replaces Doc. No. n/aAuthor Area Housing Strategy – Social and Affordable Housing Policy UnitContact Policy Analyst on (03) 6166 3609Review Date March 2017

Policy Intent The purpose of this Policy is to obtain statewide consistency on how Housing Tasmania manages public and Aboriginal housing rent accounts.

Application This policy applies to tenants who pay their rent to Housing Tasmania.It does not apply to tenants that may have a tenancy agreement with Housing Tasmania but who are managed by and pay their rent to a community housing organisation, including those tenants managed under the Better Housing Futures program.

Rent method Market Rent, Tenant Contribution and Director of Housing Rent Assistance are calculated according to Housing Tasmania’s Rent Setting Policy.

Payment methods The preferred method of payment is Direct Debit where possible. Other acceptable methods are BPay, or payment at any Australia Post office or Service Tasmania site.

Payment Frequencies

A tenant can pay weekly, two weekly or four weekly. Tenants cannot pay monthly. Payment frequency is agreed at the start of each tenancy. Tenants must contact Housing Tasmania if they want to change their payment frequency.Tenants are required to pay rent in advance. If tenants have nominated to pay weekly, they are required to pay one week in advance. If they have nominated to pay fortnightly they are required to pay one fortnight in advance. If they have nominated to pay four weekly they are required to pay four weekly in advance.This will provide sufficient funds on their account to cover the week(s) when they are not required to make a payment. As soon as a payment is missed or underpaid, the account is considered to be in rental arrears.

Income review It is a condition of living in a general rental property owned by Housing Tasmania that tenants provide information about who lives in their property, and how much income is received.

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Under the tenancy agreement, the tenant is required to provide current proof of income immediately when:

The tenant’s income changes; The income of a member of the tenant’s household

changes; and Housing Tasmania request it.

Housing Tasmania regularly reviews incomes to ensure that the correct tenant contribution is set. Reviews occur between four weekly and two yearly, depending on income sources and the frequency of household and income changes. Tenants have the option of signing up to automatic Income Confirmation. Housing Tasmania can then get income details automatically from Centrelink. Tenants can withdraw consent by contacting Housing Tasmania.

New household members

Tenants must advise Housing Tasmania immediately if a new person joins the household. If the person is approved to stay at the property, their income details must be provided. The tenant contribution will then be recalculated.

Backdating When the tenant gives Housing Tasmania proof that their household composition or income has changed, Housing Tasmania will work out the new tenant contribution.Housing Tasmania aims to process all household and income changes within 10 days of receiving notice. If the tenant provided details immediately but Housing Tasmania did not process within 10 days, the tenant will not be disadvantaged. Any credits will be backdated to the date that the information was received.Housing Tasmania will not backdate credits if tenants do not advise Housing Tasmania of changes. If a tenant should have paid less, but did not tell Housing Tasmania when the change happened, Housing Tasmania will date the changes from the day it processes the information (within 10 days of receiving these details).Tenants must advise Housing Tasmania of their correct household and income details. If a tenant fails to disclose this

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information in a timely way in an attempt to attract a lower tenant contribution charge, the client may be required to pay back some or all Director of Housing Rent Assistance they received.If a backdate to the tenant’s rental account results in rental arrears the normal arrears management process will be followed.

Refunds Tenants should not pay more into their account than is required to pay for rent, payment in advance and arrears. Rent accounts should not be used as bank accounts.If there has been an error in processing, the client may be eligible to choose a refund. Otherwise, credit will be reduced by suspending rental payments for agreed period of time, or paying off debts to Housing Tasmania.

Rent Arrears When tenants do not pay their tenant contribution it is a breach of the Housing Tasmania tenancy agreement. Rental arrears can be a serious problem for tenants as they may place their tenancy at risk and even result in eviction. Rental arrears can also be a serious problem as they limit Housing Tasmania’s ability to provide services.Rental arrears can occur when:

A payment is not received by the due date; A payment is underpaid; or A tenant contribution increase is backdated.

Arrears Management

Housing Tasmania acts early to manage arrears and follows a clear process. All tenancies are managed the same way, but the process may be different depending on the cause and amount of arrears.Housing Tasmania will discuss rental arrears with tenants as soon as possible to stop further rental arrears from happening.First, a reminder letter is sent to the tenant. In most cases, the letter will be followed up with a phone call to discuss the missed payment.

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If a tenant is in rental arrears and defaults on an agreement, Housing Tasmania will take the second step in the arrears management process. The action at this step will depend on the amount of the arrears. This may involve a letter and a phone call. In some cases, a home visit will occur to speak to the tenant in person. Tenants that reach this stage may have their next tenancy agreement limited to six month’s duration. The arrears management process steps are followed until the tenant clears their rental arrears. If the tenant continually defaults and does not clear their rental arrears, and further negotiations are not possible, the Tenancy Officer may need to proceed with the eviction process. At each stage, the tenant will be told what the consequences or next stages will be if they do not keep to the arrangements made.

Accessing Support through Housing Connect

It may be necessary to discuss a referral to Housing Connect with the tenant so that their support needs can be assessed and coordinated. Access to the relevant support will assist the tenant to maintain a successful tenancy for their duration of need. In some cases it will also be relevant to discuss the tenant’s housing needs. An alternative housing option may be better for the tenant to sustain a long term and stable tenancy and reduce the likelihood of homelessness.

Legal Framework This Policy adheres to the Residential Tenancy Act 1997 where relevant.

Exemptions n/a

Responsibilities/ Delegations

All Housing Operations staff are responsible for ensuring the appropriate application of the policy.

Disclaimer This is a statewide policy and must not be re-interpreted so that subordinate policies exist. Should discrete operational differences exist, these should be expressed in the form of an operating procedure or protocol that must be approved at the same level as this policy.

Audit and Compliance

Failure to comply with this policy, without providing a good reason for doing so, may lead to disciplinary action.

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Compliance with this policy is monitored by the Manager Housing Operations, through the delegated Area Managers.

Procedures and Forms

Rent Account Management Procedures

Related Policies Housing Tasmania rent settingLeases and TenureHome VisitsTenancy Management

Glossary n/a

This Policy may be varied, withdrawn or replaced at any time. Compliance with this directive is mandatory for the Department of Health and Human Services. Please Destroy Printed Copies. The electronic version of this Policy is the approved and current version and is located on the Agency’s intranet. Any printed version is uncontrolled and therefore not current.

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