Trust House announces small rent increases

Trust House tenants will be paying more in rent from July. Photo / NZME

Tenants in community housing owned by Trust House will be facing rent increases of up to $27 a week from July.

The housing provider, based in the Wairarapa, announced the increases late last week, saying they would be on average $9 to $27.

The decision followed a review of proposed rent increases earlier this year that would have raised some tenants’ rents more than 100 per cent.

However, the proposal drew criticism and upset some tenants.

Trust House executives put the plan on hold after they became aware that sitting tenants who were not already receiving a government subsidy, Income Related Rent (IRR), would no longer qualify, even if they met the threshold.

The subsidy would cap a tenant’s rent at 25 per cent of their income, with the Government meeting the rest.

Acting chief executive Graeme Bell said the intention was to bring rents into line with market rentals, and would support plans for improving their housing.

“We could only do this if all of our tenants were eligible for the IRR subsidy,” Bell said.

“Trust House regrets the stress those proposed rent increases caused tenants and we committed to reviewing the rent rises when we put the rent increases on hold.”

From July 1, rents for non-IRR subsidy tenants would range from $182 a week up to $425 a week, depending on the number of bedrooms and where the house was.

Bell said the rents were still on average well below the market rate in Wairarapa and Tararua district.

Trust House owned 489 rental properties in Masterton, South Wairarapa and Tararua district, with about 20 per cent of the stock in the Tararua district.

There will be 180 tenants affected by the increases and they will be receiving letters notifying them.

Bell said the additional income would be allocated to improving their existing houses and building much-needed new housing to meet the increasing demand for social housing.

“Finalising the plan will take time and be a job for the new CE. My focus as the acting CE is providing business continuity across the organisation and business operations for staff, tenants, stakeholders and the community.”

Letters had been sent to tenants last week and included a formal 60-day notice outlining what their new weekly rental amount would be, with the notice starting from May 1.

That would give tenants more time to make contact with Work and Income to see if they were entitled to financial assistance or were receiving all their entitlements.

Trust House could also help tenants make contact with Work and Income if needed.