Policy Title Rent Setting Policy
Date Policy Discussed & Agreed by Board 23rd November 2021
Review Date
Signed by the Chairperson on behalf of the Board
 

Rent Setting Policy

Date Policy Discussed & agreed by Board: 23rd November 2021 Review Date: Signed by the Chairperson on behalf of the Board:

Policy Statement

This Policy has been drawn up on the understanding that the tenant is responsible for payment of rent on a weekly basis as stipulated in the Tenancy Agreement. The rents for a property shall be set according to the rent scheme in place for that particular property. CLSS and CALF scheme rents are assessed annually and amended accordingly while CAS rents are fixed. Tenants will be informed of the rents applicable to their property. Mindful that genuine difficulties may arise from time to time in the payment of rent, Tinteán shall manage the collection of rent/arrears in an efficient, effective and fair manner.

1. Process

  1. The income received in the form of rent payments are used to secure the future repair needs and management of dwellings. Tinteán must collect this money to safeguard the future of the housing owned by Tinteán.
  2. The Rental Policy is also guided by the consideration that many tenants live on low incomes from which debt can all too quickly arise. Tinteán will therefore act speedily to prevent the occurrence of arrears, and the stress which accompanies being in debt.
  3. The officers of Tinteán will at all times treat each rent account in the strictest confidence.
  4. The rent assessment and arrears procedure will be fully explained to all new tenants.
  5. Rent is charged from the week of the commencement of the tenancy.
  6. Rent is re-assessed annually in the first quarter of each year.
  7. Revised rents fall due on first Friday in July.
  8. Tenants are obliged to pay rent weekly in arrears.
  9. The responsibility to pay rent and to fully disclose all information necessary for assessment rests with the tenant.
  10. Rent cannot be withheld due to any dispute between Tinteán and tenant e.g. repair issues.
  11. Tinteán will do its best to facilitate the payment of rent.
  12. Tinteán will give to each tenant a written assessment of their rent at the initial pre-tenancy stage and at each subsequent assessment, and of any changes that occur.
  13. Tinteán will supply to each tenant a Tenant Account Statement each quarter (March, June, September, December) with an End of Year Statement every December. A tenant can request a statement at any time throughout the year.
  14. In the event that arrears arise then Tinteán will contact the tenant as early as possible.
  15. Tinteán will as a priority assist the tenant in restoring the regular payment of rent and then come to an agreement to clear any arrears. Tenants will be offered advice by Tinteán or referred to a third party for welfare advice and where appropriate debt counselling and budgeting advice.
  16. It is at the discretion of Tinteán to review the minimum and maximum levels of rent. Tinteán will do so bearing in mind:
    • The statutory framework of the capital funding schemes
    • Costs/inflationary demands on Tinteán
    • Affordability for tenants
  17. Any changes in the rent calculation will be implemented at the time of the annual rent assessment and at least 4 weeks advance notice of any changes will be given to tenants.
  18. Where appropriate, Residents’ representative bodies may be consulted on organisational changes and or policy procedures.
  19. Records of all payments, payment methods and arrears will be securely kept in compliance with GDPR.
  20. Tinteán will act to maintain rental income.
  21. Eviction will be used when all efforts to recover the arrears have failed.

2. Rent Assessments

2.1 Income Returns

An Income Return form must be completed by all new tenants prior to moving in and by existing tenants at the yearly review in order for their rent to be assessed.

2.2 New Tenancies

  1. Rent is assessed prior to the tenant moving in.
  2. The Income Return Form together with supporting evidence of income must be submitted to Tinteán at least four weeks prior to the commencement of tenancy in the case of first lettings. For re-lets the Form must be submitted to Tinteán at least 1 week before the start date of the tenancy.
  3. If a tenant fails to provide the required information, he/she will not be allowed to move into the property.
  4. The calculation of the rent will be given to the tenant prior to the commencement of their tenancy.
  5. The tenant will pay rent one week in arrears.

2.3 Rent Review

  1. Tinteán reviews each household’s rent annually. The review is based on the household’s income for the previous tax year, or current income if substantially less than previous year.
  2. All tenants will receive one month’s written notice of any change to rent.
  3. It is the responsibility of tenants to give accurate information concerning their income to Tinteán.
  4. Failure to complete and return the Income Return form is a breach of tenancy and will be dealt with accordingly. A warning indicating the likely action will be sent to tenants who have not submitted their income statement by the required date.

2.4 Changes of Circumstances

  1. If changes in the household composition and/or of named tenants occur during the year, rent will be reassessed from the date of change.
  2. Rent will also be reassessed if household income increases or decreases during the year. Tinteán should be notified immediately of such changes in income. Refunds arising from late notification of a significant change of circumstance will not be backdated beyond three months. Increases will be retrospectively applied in line with change in income.
  3. Rent will only be revised upon evidence of the change in income. The situation is to be reviewed by Tinteán every 6 weeks and failure to produce evidence of income will result in the rent being raised to the original level.

2.5 Hardship

  1. Rent payments can be reduced for a limited time under the ‘Hardship Clause’ if exceptional financial difficulties arise.
  2. The financial hardship must be exceptional, unforeseen, and genuine and evidence must be provided by the tenant.
  3. Tenants should be asked in all cases to seek assistance from statutory sources, such as SWA Exceptional Needs or Urgent Needs Payments, before being considered under the Hardship Clause.
  4. Applications for reduced rent under the Hardship Clause are made by tenants to Tinteán in writing. It is at the absolute discretion of Tinteán to decide whether the Hardship Clause should apply to an individual’s circumstances or not.

3. Capital Loan & Subsidy Scheme (CLSS) Rent Scheme - Calculation of Rent

3.1 Household Income

Household income for the purposes of determining rents shall be the total income of the tenant and his/her spouse or of joint tenants as the case may be and, in addition, in the case of other persons residing in the house whose income is not included in household income the weekly rent shall be increased by €0.23 for each €1.27 of such income in excess of €102, subject to the rent payable in respect of such person(s) being not more than €25.39 per week.

3.2 Rent Calculation

  1. Rent is assessed at €6.35 for the first €102 of gross income and 18% of the gross income over €102 per week. Income is based upon the gross income for the previous tax year, that is from January 1st to end of December of the previous year, unless this differs from the current year’s income, in which case the most up-to-date income will be assessed. Rent set operates for the entire year until the next assessment, subject to the changes outlined in 3.4.
  2. It is at the discretion of Tinteán to review the minimum and maximum levels of rent in line with Carlow Co Council differential rent scheme.
  3. Any changes in the rent calculation will be implemented at the time of the annual rent assessment and at least 4 weeks advance notice will be given to tenants.
  4. Items included as assessable income:
    • Employment including self-employment
    • Social insurance / social assistance payments
    • Health board allowances
    • FAS training allowances
    • CE Schemes, Back to Work, VEC Schemes
    • Income from pensions and any other source
    • Family Income Supplement
    • Spouse maintenance
    • Child maintenance
    • Income from overtime worked
    • Allowances for fostering children
    • Income from any other sources not listed above
  5. Items excluded from assessable income:
    • Living alone allowance
    • Child benefit
    • Orphans allowance and orphan benefit
    • Allowances for domiciliary care of disabled children.
    • Carers allowance unless main payment
    • Allowances / assistance received from any charitable organisation
    • Christmas bonus payments from the Dept. of Social Welfare
    • Dietary and mobility allowances
    • Heating and fuel allowances
    • Scholarships and HE Grants

3.3 The Subsidiary Earner

  1. A subsidiary earner is defined as a member of the household, other than the principal earner with an assessable income.
  2. All other persons apart from the principal tenants(s) with an income, living in the home should contribute a maximum of €25.39 per week (except children under 18 or an adult under 23 in full time education).

3.4 Deduction for Dependent Children

A deduction of €1.27 is made for each dependent child up to age of 23 if in full time education & without a source of income.

3.5 Maximum Rents

The maximum rent is €180 per week for the principal tenant(s). Tinteán will review the maximum rent from time to time.

3.6 Minimum Rents

Minimum rent is set at €27.

3.7 Rent Year

The rent year runs from the first July to the 30th June in the following year. The yearly income of the previous tax year - January to December may be used to derive the weekly income, unless this differs from current yearly income, in which case the most up-to-date income will be used. During the annual rent review, an Employment Details Certificate/P21 or equivalent must be furnished by tenants to determine historical income. Three recent payslips or a recent social welfare benefit receipt must be supplied to determine current income. In the event of such documentation not being produced within the stipulated time, the rent will be assessed at a rate not exceeding the maximum rent. Charged at the maximum rent until the information is supplied and will be non refundable.

4. Capital Advance Leasing Facility (CALF) Rent Scheme: National Asset Property Services (NARPS) Rent Scheme Mortgage to Rent Scheme (MTR) - Calculation of Rent

The Local Authority Differential Rent Scheme is applied to all units funded under the above funding schemes. See their website for full details. Carlow Differential Rent Scheme is as follows:

4.1 The Principal Earner

The earner with the highest weekly income who is residing in the house as his/her normal place of residence.

4.2 Subsidiary Earner:

Any earner in the household who is not the principal earner and who is residing in the house as his/her normal place of residence.

4.3 Assessable income:

  • Income from employment – gross weekly income less paye, prsi, usc & pension deductions. If income is earned fortnightly, monthly etc., the weekly equivalent shall apply
  • Income from self-employment
  • Income from Social Welfare payments - in the case of joint tenants, or in the case of a tenant and partner, who receive separate social welfare payments, it will be the combination of these payments that will be taken as the principal earners income
  • Back To Work Allowance in accordance with Circular HRT5/94
  • Income from maintenance
  • Payments from other government departments or state agencies
  • Rental and other income from land or property
  • Income from pensions
  • Income from savings, deposit accounts and investments
  • Income from other sources not mentioned above

4.4 Evidence of Income:

  • Current payslips
  • Most recent audited accounts and most recent tax assessment i.e. assessment from the preceding October
  • Current Social Welfare receipts
  • The local authority may require documentary evidence as it deems appropriate in any case. In the event of such documentation not being produced within the stipulated time, the rent will be assessed at a rate not exceeding the maximum rent.

4.5 Income Disregards:

  • Child Benefit
  • Carers Allowance
  • Blind Pension
  • Domiciliary Allowance
  • Foster Care/Guardian Allowance
  • Fuel Allowance
  • Living Alone Allowance
  • Over 80’s Allowance
  • Fás Training Allowances/Schemes
  • Scholarships/Internships
  • Higher Education Grants
  • Lump Sums
  • Shift Allowance/Overtime
The above incomes are disregarded unless they are the primary payment in the household, in which case anything above the base social welfare rate for a comparable household type is disregarded.

4.6 Dependants:

  • A person under 18 years of age.
  • A person over 18 years of age, in full-time education and not in receipt of an income.

4.6.2 Calculation of Rents:

In accordance with the terms of the letting agreement, all tenants shall submit to Tinteán, current income details of each household member and shall notify Tinteán immediately of any increase or decrease in such income. Failure to submit such documentation, within the stipulated time, will result in the rent being increased to the maximum rent. Rents shall be calculated as follows:

4.7 The Principal Earner:

20% (1/5) of earnings in excess of €60.00 shall be payable.

4.8 Subsidiary Earners:

20% (1/5) of earnings in excess of €60.00 shall be payable, subject to a maximum of €20.00 per subsidiary earner.

4.9 Dependants:

There shall be a deduction of €2.00 per dependant.

4.10 Rounding:

Where the rents calculated in accordance with the preceding paragraphs are not multiples of €0.50, they shall be rounded to the nearest €0.50.

4.11 Minimum Rent:

€27.00 per week, regardless of the size of the dwelling.

4.12 Maximum Rent:

  • Demountable Type Dwellings - €25.00
  • Halting Site Bays - €30.00
  • All Other Dwellings - €180.00

4.13 Review of Income:

Tenants shall notify the local authority immediately of any change in income or in family circumstances. All revised rents shall be applicable from the date of change of income/circumstances.

4.14 Hardship Clause:

In exceptional circumstances, where essential costs are incurred by households outside of normal weekly running costs, and the payment of differential rent calculated in accordance with this scheme, would in the opinion of the Housing Authority, give rise to hardship, a lesser rent may be accepted for a specified period.

5. Capital Advance Scheme (CAS) Rent Scheme - Calculation of Rent

5.1

In the case of any units let under the Capital Assistance Scheme, the income-based rent assessment does not apply and maximum rent is calculated by Tinteán with view to the cost of providing the dwelling and rent supplement levels.

5.2

Rent supplement is available to those tenants who cannot afford the rent and should be applied for through the local Community Welfare Officer. Tinteán’s minimum contribution that tenants are expected to pay towards the cost of their accommodation is €32 for a single person and €40 for a couple. The set rents are as follows:
  • €87 1 single person
  • €102 2 couple.

5.3

Information on the application process for rent allowance will be provided to new tenants and contact will be made, wherever possible, with the local CWO before residents take up occupation. However, it is the tenants’ responsibility to apply for rent supplement and the full rent is payable to Tinteán in any case.

5.4

The same procedures in relation to arrears control apply to these tenancies. Full collection of rent is crucial as no management and maintenance grant is available to Tinteán under the Capital Assistance Scheme.

5.5

Rent levels for dwellings provided under Capital Assistance are determined by Tinteán on a scheme-by-scheme basis, within the limits set by the SWA scheme. Rent will be based with regard to running costs, costs of additional services, provision for sinking fund, voids/bad debt etc.

6. Payment Procedure

6.1

Payment is due weekly in arrears.

6.2

Method of payment will be agreed between the tenant and Tinteán.

6.3

The accepted methods of payment are:
  • An Post / Dept of Social Welfare Household Budget Scheme
  • Bank standing order
  • Bank giro/Postal Order/Cheque
  • Cash at office only in exceptional circumstances

7. Statements

7.1

Rent Account Statements will be issued to tenants quarterly.

7.2

Full year rent account statements will be issued at the end of the rent year.

7.3

A statement can also be issued at the tenant’s request.  
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