What are the types of payable rent?
The amount of rent you will pay will be either:
- market rent or
- an assessed rent amount or
- minimum rent
What is a rent rebate?
A rent rebate is a discount amount between the maximum rent for the property and the assessed rent based on the household’s information.
To be eligible for a rent rebate, you will need to:
- provide a completed Household Information Form (HIF) by the annual deadline or within 14 days of a change to:
- household income by more or less than $50 per week; or
- or a change in the number of household occupants.
- provide all the required evidence of household income and composition as required by CEHL.
- each household member, 18 or over, is required to complete their own individual section of the Household Information Form and sign the declaration.
What is market rent?
Market rent is the amount of rent you would pay in the private market; it is based on an independent market rent valuation.
Market rent was previously referred to as maximum rent.
The Notice of Proposed Rent Increase (NOPRI) that members and renters will receive around March each year will identify the market rent that may be charged on your property from 1 July.
Households will be charged market rent if:
- household assessed rent is equal or higher than the market rent amount for the property
- a HIF is not provided for a rent assessment
- renters are not eligible for an assessed rent.
How is market rent decided?
The market rent amount for every property is set by an independent rent valuer, annually consistent with housing sector standards.
The valuation takes into account the following property features:
- address
- suburb
- quality assessment
- year of construction
- number of bedrooms
- property type
- number of bathrooms
- land size.
What do I do if I think the maximum rent is too high?
If a household believes the market rent is too high, you can request a review of the market rent via Consumer Affairs Victoria (CAV).
Please note this review can only occur within 30 days of receiving your notice of proposed rent increase. CAV will complete an independent valuation of the property. If the valuation differs from the Notice of Proposed Rent Increase, CEHL will accept the CAV valuation.
For more information visit www.consumer.vic.gov.au
What is minimum rent for co-op members?
Minimum rent:
- is the lowest rent that will be charged unless an exemption is granted
- applies if the assessed rent is below the minimum rent
- is based on the Centrelink payments you are entitled to, whether you are claiming them or not.
How is minimum rent calculated for co-op members?
CEHL co-op members minimum rent is calculated at:
- minimum rent = 25% gross income, plus
- 15% Family Tax A and B or 15% Youth Allowance (if these amounts are applicable to the household), plus
- + 100% of Commonwealth Rent Assistance (CRA).
When does minimum rent apply for co-op members?
Minimum rent is applied to co-op members:
- based on the assessment of renters income, or imputed eligible payments
- if a renter loses employment and are waiting for Centrelink Payments to be applied
- if there are extenuating circumstances and an exemption is applied to provide rental relief
- minimum rent is also applied on the first schedule, to account for a vacancy during the annual rent review process.
Can I apply for an exemption to paying minimum rent?
CEHL can consider an exemption to the minimum rent where due to circumstances beyond their control, a household can demonstrate the following:
- the assumed minimum Centrelink Benefit is incorrect
- they are temporarily required to pay additional accommodation costs to meet legal or health-related requirements.
The onus is on the primary renters to apply for relevant payments, or to demonstrate that a household occupant is not eligible for assumed Centrelink payments.
Households wishing to apply for an exemption should:
- complete the Exemption to Program Policy Request Form
- return the form to finserv@cehl.com.au
- if you require additional information please phone 03 9208 0800.
What happens to my rent if my income changes?
If a household income changes by more than $50 a week (goes up or down) the rent you pay may need to change.
| Who do I contact? | |
|---|---|
|
CERC Member |
Your Co-op Treasurer or Finance/Rent Officer |
|
CMC Member or Direct Renter |
CEHL Tenancy Co-ordinator |
You will need to submit a new Household Information Form HIF and provide income evidence.
What is Commonwealth Rent Assistance (CRA?)
The government pays Commonwealth Rent Assistance (CRA) to eligible people who rent in the private rental market, or community housing. It is not paid to public housing renters.
It is a non-taxable supplement, separate from taxable income, and is automatically adjusted twice a year.
More information can be found here https://www.dss.gov.au/housing-support/programmes-services/commonwealth-rent-assistance#1
It is standard practice for community housing providers, including CEHL, to calculate rent payments as a percentage of assessable income + 100% of the rent assistance paid to the renter by the Commonwealth.
Want to know more?
You will find more information in the CEHL Household Rent Guide
