Policy Last Amended: 1 May 2012
1. Background
Social housing providers recognise that establishing a tenancy in the private rental market can be difficult. To help people to access and maintain a tenancy in the private rental market, social housing providers can offer, or facilitate access to, the following private rental assistance products:
The intent of this policy is to outline the various forms of private rental assistance available from the social housing sector in NSW. The Social Housing Eligibility and Allocations Policy Supplement provides further information to support this document.
Social housing providers can also offer, or facilitate access to Rentstart assistance products, to assist with costs to establish and maintain a tenancy in the private rental market through the provision of bond, assistance to pay rental arrears or short term assistance for homeless people. For more information, go to the Rentstart Assistance Policy
2. Scope
This policy applies to all applicants for private rental assistance products and applicants who may be eligible to receive a Private Rental Subsidy.
Under Housing Pathways, participating community housing providers facilitate access to private rental assistance products, for example via phone and or fax. Delivery of these products will remain the responsibility of the Department of Family and Community Services - Housing NSW (with the exception of Tenancy Guarantees, where both Housing NSW and community housing providers offer this product).
3. Policy statement
To access any of the private rental assistance options, households must meet the relevant eligibility criteria, which vary for each product. Housing NSW will advise clients in writing of the outcome of a private rental assistance assessment.
If the client is not eligible for a certain product, Housing NSW consider eligibility for other types of assistance.
Private Rental Assistance Products
3.1 Statements of Satisfactory Tenancy
A Statement of Satisfactory Tenancy (‘Tenancy Statement’) is a document that indicates whether a public housing tenant (i.e. a tenant whose tenancy is managed by Housing NSW, including tenants of the Aboriginal Housing Office) has maintained a satisfactory tenancy in relation to the payment of rent and other charges, the care of their property and other tenancy aspects. A current or former public housing tenant can use the statement to help them get private rental accommodation when they are leaving, or have left, public housing.
Applying for a Statement of Satisfactory Tenancy
Clients who are eligible to apply for a Statement of Satisfactory Tenancy include current or former public housing tenants. Current tenants may only apply if they intend to move into private rental accommodation within six weeks of the date of their application.
Clients who may not apply for a Statement of Satisfactory Tenancy include:
- Current or former tenants of a tenancy managed by a community housing provider. Although a community housing tenant may not apply for a Statement of Satisfactory Tenancy from Housing NSW, they should check with their provider if they offer a similar product.
- Other household members of a current or former tenancy managed by Housing NSW.
Clients who are eligible to apply can do so by completing the Application for a Statement of Satisfactory Tenancy and returning it to Housing NSW.
Housing NSW will only provide statements to a tenant. If Housing NSW receives a request from a third party, such as a property owner or real estate agent, Housing NSW will not provide a reference or statement (verbal or written). Similarly, Housing NSW will not expand on or clarify the contents of its written statement.
Housing NSW can however, verify that it has issued a statement to a particular tenant.
Assessing an application for a Statement of Satisfactory Tenancy
Housing NSW will assess the client’s eligibility for a tenancy statement and provide a written response within 10 working days of receiving the application. To allow Housing NSW to do this, it may be necessary to inspect a current tenant’s property in a shorter timeframe than usual. Housing NSW will seek a current tenant’s consent to do an inspection, where possible, within four days of receiving their application.
Housing NSW will only provide a Statement of Satisfactory Tenancy to a current or former tenant if, apart from minor matters, the tenant satisfies the eligibility criteria. For more information on minor matters, go to Minor matters. For more information on the eligibility criteria, go to Eligibility criteria and evidence requirements for a Statement of Satisfactory Tenancy.
If a client is eligible, Housing NSW will issue a Statement of Satisfactory Tenancy.
If a client is not eligible, Housing NSW will issue a letter declining the client’s request for a Statement of Satisfactory Tenancy. However, the client may become eligible in the future if they satisfy certain conditions. For more information, go to Conditions for becoming eligible for a Statement of Satisfactory Tenancy in the future.
3.2 Private Rental Brokerage Service
Housing NSW provides a Private Rental Brokerage Service (PRBS), which is available in certain locations across the state. For more information, go to Locations where Private Rental Brokerage is available.
The service aims to assist clients by developing and enhancing their capacity to access the private rental market, with the client directing the process as much as possible so they build their confidence and skills. This will be achieved by coaching, guiding and supporting the client. To facilitate this process, Housing NSW staff will continue to develop relationships with local real estate agents and landlords to improve client access to the private rental market.
A client may access the PRBS in one of three ways:
- A social housing provider receives a client referral from a support provider
- Where the client presents at a Housing NSW or community housing provider’s office and requests the service. Where the client presents to a community housing provider, they will facilitate access to the service through Housing NSW
- The client seeks assistance for another housing assistance product and the provider considers them a potential candidate for the PRBS.
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Assessing eligibility for the Private Rental Brokerage Service
Housing NSW will interview the client to determine their eligibility for Private Rental Brokerage. For more information, go to Eligibility criteria for Private Rental Brokerage. As part of the interview, Housing NSW will also gather information about the client’s needs and expectations, and will assess evidence requirements. For more information, go to Gathering information about a client’s needs and expectations and Evidence requirements for assessing Private Rental Brokerage eligibility.
If the client is eligible, Housing NSW will commence work with the client and support provider to find a suitable property.
Providing Private Rental Brokerage
Where a client is eligible for PRBS, Housing NSW will:
- Check the client’s eligibility for other private rental assistance products based on their needs and whether they meet the eligibility criteria. Housing NSW may offer these products, for example Rentstart or Tenancy Guarantee, to increase the client’s chance of securing and sustaining a tenancy.
- Provide the tenant with Tenancy Facilitation, which is the provision of information and practical assistance to search and apply for private rental properties. For more information, go to Tenancy Facilitation.
- Monitor the tenancy. Housing NSW will discuss any issues that may affect the tenancy with the client, the support provider and the agent/landlord in an attempt to rectify the issues identified. The emphasis will be on looking at options for sustaining the tenancy, where appropriate. For more information, go to Monitoring a private rental tenancy.
Ending the Private Rental Brokerage Service
The service provider, Housing NSW and the client will make a joint decision about ending the service in line with the case plan established at the beginning of the tenancy. If one party wishes to exit the agreement early, they should notify the other parties as soon as possible.
3.3 Tenancy Guarantees
Tenancy Guarantees are available in all Housing NSW offices and in nine community housing offices across the state. A social housing provider may offer a Tenancy Guarantee of up to $1500 to assist a client with a limited or poor tenancy history to establish a private rental tenancy. The Tenancy Guarantee can supplement the rental bond if the tenant incurs rental arrears and/or damages the property over and above the value of the rental bond.
In most cases, social housing providers expect that tenancies will be successful. A successful tenancy enables the client to build a positive tenancy history, thereby reducing or eliminating the disadvantages they previously experienced when trying to access the private rental market.
The Tenancy Guarantee is valid for the fixed term period of the tenancy agreement, up to 12 months from the start of the tenancy, or until the tenancy ends, whichever occurs sooner. This means that, up to a maximum of 12 months, the Tenancy Guarantee will last for the length of the residential tenancy agreement.
The Tenancy Guarantee ends if the landlord/agent terminates the residential tenancy agreement.
Assessing eligibility for a Tenancy Guarantee
A social housing provider will interview the client to determine their eligibility for a Tenancy Guarantee. For more information, go to Eligibility criteria for a Tenancy Guarantee. As part of the interview, the provider will also assess the client’s need for a Tenancy Guarantee. For more information, go to Determining the client’s need for a Tenancy Guarantee.
Providing a Tenancy Guarantee for an eligible client
If the client is eligible for a Tenancy Guarantee, the social housing provider will give them:
- A Tenancy Guarantee offer letter, and
- A copy of the brochure ‘Tenancy Guarantee Information for Landlords and Agents.’
The social housing provider will advise the client of:
Providing a second Tenancy Guarantee
The aim of the Tenancy Guarantee is to allow the client to establish a satisfactory tenancy. Clients who have established a record of a successful tenancy should not need another Tenancy Guarantee to assist them in the private rental market.
In some unusual circumstances, a client may need a second Tenancy Guarantee because of factors outside their control. For more information, go to Circumstances where a client may require a second Tenancy Guarantee.
When a Tenancy Guarantee expires
The social housing provider will notify the landlord/agent and tenant in writing one month before the Tenancy Guarantee expires. If the agent is satisfied with the tenancy, they may allow the tenancy agreement to continue beyond the fixed term period.
The social housing provider will notify the client when the Tenancy Guarantee expires. If there is no claim on the Tenancy Guarantee, then the tenant has demonstrated that they can sustain a tenancy in the private rental market and they will be encouraged to seek a reference from the agent at the end of the tenancy.
Claiming against a Tenancy Guarantee
To make a claim against the Tenancy Guarantee the landlord/agent must:
- Show that the claim exceeds the bond, and
- Show that they took reasonable action to mitigate the loss. This includes actions such as notifying the social housing provider if the tenancy agreement was breached, regular property inspections and contact with the tenant if the rent was not paid, and
- Submit a completed Tenancy Guarantee Claim Form to the housing provider with evidence to support the claim, and
- Submit the claim within the relevant timeframe. For more information, go to Timeframe for submitting a claim.
The social housing provider will assess the claim, which may involve inspecting the property. If the provider is satisfied that the evidence justifies the claim, they will pay the claim. The provider will notify the landlord/agent in writing of the outcome of the claim.
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3.4 Private Rental Subsidies
There are different types of Private Rental Subsidy which may provide a client with:
- Choice between private rental accommodation and social housing, and
- Mobility within and between these options, or
- Access to affordable accommodation while waiting for a suitable social housing home, or
- Access to affordable accommodation for up to 12 months.
The Private Rental Subsidy makes up the difference between the amount the client pays in rent, and the reasonable market rent for a property comparable to Housing NSW properties. Reasonable market rent means a rent close to typical market rents for that area.
Housing NSW uses the median rent as determined by the Rental Bond Board as a benchmark. There are some cases where Housing NSW will approve the payment of a private rental subsidy where the property rent is above the benchmark. For more information, go to Cases where a Private Rental Subsidy will be approved for a rent above the benchmark.
For some Private Rental Subsidies, the market rent must also be affordable. Affordability is calculated using the same method as Rentstart. For more information go to Assessing eligibility for Rentstart products.
The eligibility criteria for a Private Rental Subsidy will differ, depending on the type of subsidy a client may receive. Where a social housing provider approves a client for priority housing, they may be eligible for a Private Rental Subsidy from the date of priority housing approval. Additionally, where a client has reached their turn on the waiting list, they may be eligible for a Private Rental Subsidy if the social housing sector cannot provide suitable social housing.
Housing NSW will regularly review a client’s entitlement to receive a Private Rental Subsidy.
Eligibility for a Private Rental Subsidy - Special
The Private Rental Subsidy Special is a longer-term housing solution that does not require a client to move into social housing. To be eligible for a Private Rental Subsidy Special , clients must:
- Be eligible for social housing (for more information, go to the Eligibility for Social Housing Policy), and
- Meet the criteria for priority assistance (for more information, go to the Eligibility for Social Housing Policy), and
- Be diagnosed as HIV/AIDS positive, as documented by a medical practitioner, and
- Provide evidence from a health or community expert as to how the person’s HIV status impacts on their housing and locational needs, including carer and support services needed, and
- Provide evidence as to how the Private Rental Subsidy Special or social housing allocation would help resolve that need.
Eligibility for a Private Rental Subsidy - Disability
The Private Rental Subsidy Disability is a short-term solution to assist the client while waiting for a suitable social housing property to become available. To be eligible for a Private Rental Subsidy disability, clients must:
If a client receiving a Private Rental Subsidy disability refuses two reasonable offers of social housing, they will no longer be entitled to receive the subsidy and Housing NSW will remove them from the NSW Housing Register.
Eligibility for a Private Rental Subsidy – Start Safely
The Private Rental Subsidy Start Safely is time limited. It assists women escaping domestic violence to maintain or move into affordable private rental accommodation.
To be eligible for Start Safely, clients must:
- Be eligible for social housing (for more information, go to the Eligibility for Social Housing Policy), and
- Be escaping domestic or family violence, and
- Be homeless or at risk of homelessness, and
- Be able to demonstrate an ability to afford and sustain the tenancy at the end of the subsidy period, and
- Be willing to receive support services where relevant.
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Evidence requirements
Clients must provide suitable documentary evidence to support their application for a Private Rental Subsidy. For more information, go to Evidence requirements for a Private Rental Subsidy. Clients must also provide proof of income for all members of the household aged 18 years and over. For more information, go to Proof of income and assets.
Housing NSW tenants approved for transfer
Housing NSW tenants who are approved for transfer and who meet the eligibility criteria for a Private Rental Subsidy, may be eligible to receive the subsidy to live in private rental accommodation while they are waiting for suitable social housing accommodation to become available. For more information, go to Housing NSW tenants approved for transfer.
Private Rental Subsidy Special clients moving from private rental accommodation to social housing
A client who has been approved for a Private Rental Subsidy Special and is seeking an allocation of social housing may apply for priority assistance. When approved, they become eligible for priority assistance from the date that Housing NSW first approved their Private Rental Subsidy Special .
Calculating the subsidy
As long as the rent charged by the landlord is reasonable, the amount of rent the client actually pays is similar to the amount they would pay as a Housing NSW tenant. The majority of Private Rental Subsidy clients contribute 25% of their income to rent; however, there are some exceptions. For more information, go to Exceptions to paying 25% of income towards rent.
Clients who receive a Private Rental Subsidy are entitled to receive Commonwealth Rent Assistance (CRA) as they are not public housing tenants and are renting in the private sector. When assessing the household income, Housing NSW will presume that a client is receiving CRA even if they have not applied to Centrelink for this income.
CRA contributes towards rent. When calculating the subsidy provided to new clients, and existing clients relocating to a new address, Housing NSW will assess 100% of the CRA as a contribution towards rent. However, there are some exceptions in relation to existing clients who move. For more information, go to Exceptions to calculating Commonwealth Rent Assistance at 100%.
Housing NSW includes a carer’s income in the Private Rental Subsidy calculation if they are living with the client. Housing NSW excludes a carer’s income if they are not living with the client.
Reviewing the Private Rental Subsidy
Private Rental Subsidy clients do not need to reapply for a subsidy each year. However, Housing NSW will regularly review the income details of Private Rental Subsidy clients, their circumstances and their entitlement to receive the subsidy. Housing NSW calls this a scheduled Private Rental Subsidy review.
When a client informs Housing NSW of any changes to their household or household income, Housing NSW will reassess the subsidy to ensure that the household is paying the correct amount of rent. Housing NSW calls this an individual Private Rental Subsidy review.
Change in circumstances
A Private Rental Subsidy client must advise Housing NSW within 28 days of any changes in household members, household income, rent, address, need for carer, and landlord or real estate agent.
If a Private Rental Subsidy client does not inform Housing NSW about any changes to their household or household income, the household may be provided with an incorrect subsidy amount. In some cases, this may result in the client owing money to Housing NSW.
A client should also advise Housing NSW if they are considering relocating as this may affect the amount of their rent subsidy.
Paying a Private Rental Subsidy
Housing NSW will pay a Private Rental Subsidy from:
- The date on which the client’s application was approved, or
- The date the lease begins, whichever is the later.
Housing NSW pays the subsidy directly to the landlord/agent, with payment being generally one month in advance.
4. Legislation and compliance
Housing NSW is able to provide private rental assistance products in accordance with the Housing Act 2001.
5. Related documentation
6. Further information
Appeals and review of decisions
If a client disagrees with a decision a social housing provider has made, they should first discuss their concerns with a staff member from the provider that made the decision. The next step, if they still believe the social housing provider made the wrong decision, is to ask for a formal review of the decision.
For information on how Housing NSW reviews work, see the fact sheet Reviewing Decisions, or read the Client Service Delivery and Appeals Policy. This policy applies to all clients of Housing NSW including applicants for housing assistance who are assisted by Housing NSW local offices or the Housing NSW Housing Contact Centre.
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