Policy Statement
Policy Detail
Appealing Decisions or Actions
Further Information
Policy Statement
The Tenancy Guarantee program encourages private sector landlords and agents to rent properties to people who are having difficulty entering the private rental market.
A Tenancy Guarantee of up to $1,000 (including GST) is available to landlords/agents to cover rental arrears and/or property damage over and above the rental bond. The Tenancy Guarantee is valid for the fixed term period of the tenancy agreement for up to 12 months from the start of the tenancy or until the tenancy is terminated, whichever occurs sooner.
The objectives of the Tenancy Guarantee product are to:
- increase private rental opportunities for people who do not have a tenancy history, have a poor tenancy history or who face discrimination.
- help people establish a satisfactory tenancy record and make it easier for them to rent in the private market in the future.
Service Standards
Housing NSW will apply the following service standards when implementing this policy:
- Explain what the Tenancy Guarantee is and how it works.
- Explain the eligibility criteria for a Tenancy Guarantee.
- Treat the client with sensitivity and empathy when interviewing and completing the assessment process.
- Respect and maintain client confidentiality.
- Monitor and follow up with client and real estate agent/landlord.
- Provide information about other types of housing assistance the client may be eligible for.
- Explain the review process and how to request a review of the assessment of eligibility.
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Policy Detail
The Tenancy Guarantee will be trialled in conjunction with Tenancy Facilitation and the Private Rental Brokerage Service for a period of two (2) years. Tenancy Guarantees are available in all Department of Housing offices.
The Tenancy Guarantee is intended to supplement the rental bond on a temporary basis. In most cases, it is expected that the tenancies will be successful. When this happens, the client will have had the opportunity to build a tenancy history, reducing or eliminating the disadvantages they previously experienced when trying to access the private rental market.
The Tenancy Guarantee only applies to tenancy agreements or premises that are covered by the Residential Tenancies Act 1987 (refer to section 6 and 7 of the Act for further detail).
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Eligibility Criteria
Tenancy Guarantees are available to clients who:
- meet Department of Housing income eligibility criteria;
- have already looked for private rental accommodation without success;
- have been assessed as able to afford private rental;
- have been assessed as able to sustain private rental;
- do not have a debt from a previous Tenancy Guarantee;
- do not have a current Tenancy Guarantee; and
- have agreed to the conditions for receiving a Tenancy Guarantee.
A client must be in receipt of a regular weekly income to be eligible for the Tenancy Guarantee as there is a requirement for the client to make rental payments if they are successful in obtaining private rental.
Clients will not be assisted into accommodation that is clearly beyond their financial means. The rent must be affordable and sustainable for the client. The rent paid for the dwelling should not exceed 50% of the household’s total gross weekly income plus any Commonwealth Rent Assistance.
Clients who have had a successful tenancy with a Tenancy Guarantee, should not need another Tenancy Guarantee to assist them in the private rental market.
Where a client has outstanding debt from a previous Tenancy Guarantee they are not eligible for another Tenancy Guarantee. Instead, the client must repay all debt before they will be considered for another Tenancy Guarantee. The client should:
- make debt repayment arrangements, and
- make a regular payment to clear the debt.
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The Tenancy Guarantee Process
Housing NSW will take the steps set out below when assisting clients with a Tenancy Guarantee.
Initial inquiry about or referral for the Tenancy Guarantee
| Action |
Explanation |
| Client referral for a Tenancy Guarantee |
A client may access assistance with a Tenancy Guarantee in one of 3 ways:
- a referral is received from a community or support service agency or a landlord/real estate agency
- the client presents at a Department of Housing office and requests assistance with a Tenancy Guarantee (self referral)
- the client seeks assistance with another Department of Housing product and it is considered the Tenancy Guarantee may assist them establish a private rental tenancy.
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| Enquiry about the Tenancy Guarantee |
Housing NSW will:
- Explain what the Tenancy Guarantee is and how it works.
- Advise the client/referral agency that the client will need to demonstrate that they have had difficulty in obtaining a private rental tenancy.
- Give the client the fact sheet Tenancy Guarantee
- If the client is being referred by another party give the referral agency the fact sheet Tenancy Guarantee – Information for Referral Agencies.
- Explain to the client and/or referral agency what further information or supporting material, if any, is required.
- Provide information about local support agencies and providers, and referral if needed, to assist the applicant in sustaining a tenancy.
- Ask the client to complete the Tenancy Guarantee application form including consent for Housing NSW to check client records and exchange information with other relevant agencies relating to the client’s Tenancy Guarantee application.
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| Information for Landlords and Real Estate Agents |
The brochure Tenancy Guarantee - Information for Landlords and Agents should be provided whenever a landlord or real estate agent makes an enquiry about the Tenancy Guarantee. |
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Assessing an application for a Tenancy Guarantee
| Action |
Explanation |
| 1: Receipt of the application form |
When receiving the Tenancy Guarantee application form Housing NSW will check to see that:
• the form has been completed,
• the client has given consent for Housing NSW to contact other agencies and organisations, and
• all necessary supporting information has been provided. |
| 2: Interview the client |
The purpose of the interview is to determine:
• if client needs a Tenancy Guarantee or if the client is able to obtain a private rental tenancy without a Tenancy Guarantee.
• assess eligibility for a Tenancy Guarantee.
During the assessment, the Housing NSW will:
• talk to the client about their situation.
• explain the Tenancy Guarantee and assistance that will be provided, if eligible.
• explore the client’s expectation of the purpose of the Tenancy Guarantee.
• detail what the client is expected to do if a Tenancy Guarantee is offered. |
| 3: Assess eligibility for a Tenancy Guarantee |
Housing NSW will make a decision based on whether the client:
• meets Housing NSW income eligibility criteria.
• has already looked for private rental accommodation without success.
• is able to afford private rental.
• is able to sustain private rental.
• has a current Tenancy Guarantee from Housing NSW or a community housing provider.
• has an outstanding debt from a previous Tenancy Guarantee.
• agrees to the conditions of a Tenancy Guarantee including repayment of any debt from the Tenancy Guarantee to Housing NSW
The assessment will include exploration of potential risks to sustaining a tenancy, including past problems and whether changes have been made to address these.
Risk factors may include:
• tenancy breaches in the past.
• listing on a tenant database.
• limited independent living skills.
• lack of support services to help sustain a tenancy.
• outstanding debts.
• lack of affordable or suitable accommodation in the client’s preferred location.
• ongoing domestic violence.
• ongoing drug use.
• untreated mental illness.
Where risk factors have been identified as a barrier to sustaining a tenancy, Housing NSW will asses:
• how the problems may have occurred.
• has anything changed so that similar problems will not happen again.
• if referrals to other support service/s will address the risk/s.
When assessing whether there are any barriers or risk factors to the client being able to sustain a tenancy, Housing NSW may contact other services and organisations to confirm the assessment.
Housing NSW will confirm its decision in writing.
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| 4: Eligibility for a 2nd 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 example, when the property covered by the Tenancy Guarantee is sold before they have been able to establish a successful tenancy record.
A client can be granted a second Tenancy Guarantee if:
• the client is still eligible, and
• there was no claim against the first Tenancy Guarantee.
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| 5: If the client is ineligible, make referrals to other services |
Clients not eligible for a Tenancy Guarantee, may be eligible for other types of housing assistance provided by Housing NSW, such as Rentstart, Tenancy Facilitation, Private Rental Brokerage or Priority Housing.
Referrals to other housing agencies or service providers such as refuges or other Supported Accommodation Assistance Program (SAAP), rehabilitation services or supported housing providers will also be made where appropriate.
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| 6: If the client is eligible |
Housing NSW will issue the client with a Tenancy Guarantee Offer if:
• all eligibility requirements are met, and
• the client requires the type of assistance provided by a Tenancy Guarantee.
|
| 7: Documentation provided to eligible client |
The client will be given the following documents:
• a Tenancy Guarantee offer letter from Housing NSW, with of the Tenancy Guarantee registration number, the offer and expiry date, the maximum weekly rent, conditions of the Tenancy Guarantee offer and contact details for the issuing office,
• a copy or copies of the Landlord/agent Acceptance of Tenancy Guarantee,
• a copy or copies of the brochure Tenancy Guarantee Information for Landlords and Agents.
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| 8: Duration of the Tenancy Guarantee |
The Tenancy Guarantee is valid for the fixed term period of the Residential Tenancy Agreement, for up to 12 months or until the tenancy is terminated, whichever occurs sooner.
A Tenancy Guarantee can be issued for three months, six-months or twelve-months, according to the term of the Residential Tenancy Agreement. The duration of the Tenancy Guarantee must be the same as that of the Residential Tenancy Agreement.
The Tenancy Guarantee is terminated if the Residential Tenancy Agreement is terminated.
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Explaining the conditions for activating a Tenancy Guarantee
Housing NSW will advise the client of the conditions which are necessary for a Tenancy Guarantee to be activated when informing the client about their approval for a Tenancy Guarantee offer.
| Action |
Explanation |
| 1. Determining Maximum rent |
• The maximum rent for which a Tenancy Guarantee can be issued is 50% of the household’s gross weekly income plus 100% of any Commonwealth Rent Assistance received.
• When determining an affordable weekly rent Housing NSW will consider any outstanding debts and other financial commitments that impact on the client’s ability to pay rent.
|
| 2. Shared Households |
A single Tenancy Guarantee may be issued for two clients who are seeking a shared household arrangement as long as:
• Each client is listed on the Residential Tenancy Agreement and the Tenancy Guarantee is issued in both names.
• There are no more than two individual clients in the shared household.
Where there is a change in the share household arrangements after the tenancy has commenced:
• If one client leaves the tenancy, a new Residential Tenancy Agreement must be signed and a new Tenancy Guarantee negotiated.
• Where all clients wish to look for separate accommodation, new individual Tenancy Guarantees may be issued if required to replace the original Tenancy Guarantee issued for the shared household. In most circumstances the record of a successful tenancy should be sufficient to allow the clients to secure a new tenancy without a Tenancy Guarantee.
• If the names of the clients currently living in the rented dwelling do not match both the names on the Residential Tenancy Agreement and the Tenancy Guarantee, the Tenancy Guarantee is invalid.
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| 3. Excluded Properties |
The Tenancy Guarantee does not apply to agreements or premises that are not covered by the Residential Tenancies Act 1987.
Tenancy Guarantees do not cover accommodation in:
• a boarding or lodging arrangement.
• institutional care.
• holiday accommodation.
• accommodation covered by the Residential Parks Act or the Retirement Villages Act.
• other agreements or premises to which the Residential Tenancies Act does not apply (see sections 6 and 7 of the Residential Tenancies Act for further detail on agreements excluded from the Act).
Where a property is excluded and the Tenancy Guarantee can not be used, the client will be assured that the Tenancy Guarantee offer is still valid and advised to continue looking for appropriate accommodation. |
| 4. Ineligible Properties |
A property is ineligible if:
• the rent exceeds the maximum rent in the Tenancy Guarantee letter,
• the landlord/agent is not prepared to grant a Residential Tenancy Agreement,
• the landlord or agent has been excluded from the product for previous misuse.
Where a property is ineligible, Housing NSW will inform the client, assure them that the Tenancy Guarantee offer is still valid and advise the client to continue looking for appropriate accommodation. |
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Responsibilities of Housing NSW, the tenant and Landlords/ Agents during the tenancy
| Responsibility |
Action |
| Housing NSW |
Housing NSW has a role in assisting the tenant and the landlord or agent as required during the operation of the Tenancy Guarantee. The involvement of Housing NSW will vary from tenant to tenant but includes:
• Monitoring the tenancy monthly for the first three months and then bi-monthly to the end of the tenancy.
• Liaising between the tenant and landlord or agent to discuss and defuse problems that threaten the tenancy.
• Checking at the end of the Residential Tenancy Agreement and the expiry of the Tenancy Guarantee if the tenancy is continuing. |
| Landlord/ Agent |
In signing the Landlords/Agents Acceptance of Tenancy Guarantee, landlords/agents agree to exercise their responsibilities to mitigate loss. This means that the landlord/agent should take prompt and appropriate action to avoid or minimise loss should the residential tenancy agreement be breached, even if the expectations are in excess of the Residential Tenancies Act.
The landlord/ agent should contact Housing NSW if:
• There are changes to a shared household that is subject to a Tenancy Guarantee.
• The landlord/agent is aware of any problems likely to affect or already affecting the sustainability of the tenancy.
• The Tenancy Guarantee has been breached.
• The tenant fails to rectify tenancy breaches. |
| Tenant |
The tenant is responsible for:
• Abiding by the conditions of the Residential Tenancy Agreement.
• Informing the landlord/agent and Housing NSW of any changes to shared households,
• Seeking assistance and working with support services, if needed.
• Informing Housing NSW:
o When there is a problem threatening the tenancy,
o If a Housing NSW or Community Housing offer of housing is made,
o If they are leaving the tenancy.
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Ending the Tenancy
| Action |
Explanation |
| At the end of the tenancy |
• The landlord/agent and tenant will be notified 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 client will be notified when the Tenancy Guarantee expires. If there is no claim on the Tenancy Guarantee, the tenant has demonstrated that they can sustain a tenancy in the private rental market and will be encouraged to seek a reference from the agent at the end of the tenancy.
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| Claiming against a Tenancy Guarantee |
Duty to mitigate loss
• To make a claim against the Tenancy Guarantee, the landlord/agent must show that reasonable action was taken to mitigate loss. This includes actions such as notifying Housing NSW if the Tenancy Agreement is breached, regular property inspections and contacts with the tenant if the rent was not paid.
Making a claim
• To make a claim, the money owed from the rent arrears or damage must exceed the bond. If the claim is seeking to cover damage, Housing NSW may wish to inspect the property.
• The agent must submit a completed Tenancy Guarantee Claim Form to Housing NSW with evidence to support the claim.
Timeframes
• An agent must notify of a claim against a Tenancy Guarantee before the Tenancy Guarantee expiry.
• A claim will only be considered valid if the agent/landlord has notified Housing NSW within seven (7) days of becoming aware of a breach of the Tenancy Agreement and can show that all steps have been taken to mitigate the loss.
• All claims must be notified to Housing NSW of Housing within seven (7) days of the Tenancy Guarantee expiry.
• Landlords/ agents must commence any Consumer Trader and Tenancy Tribunal (CTTT) action within seven (7) days of the Tenancy Guarantee expiry.
• Where the agent/ landlord cannot gain vacant possession to assess damage or arrears they should notify Housing NSW immediately and commence CTTT action within seven (7) days.
• All claims must be lodged within 3 months of the expiry of the Tenancy Guarantee.
Assessment of Claims
Housing NSW will assess the claim and if satisfied that the evidence justifies the claim, will pay the claim. In assessing the claim the following should be considered
- type of damage and any information concerning liability provided by the tenant
- pre-and post- property condition reports and any evidence of work undertaken during the tenancy
- orders by the Consumer Tenancy and Trader Tribunal
- quotes or invoices for repairs
- rent statements
- evidence of fair wear and tear, which the agent/Landlord is responsible to repair.
If a claim is assessed as valid a repayable debt will be raised against the client. Housing NSW will advise the landlord/agent and the client in writing about the decision and options for complaints or appeals.
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| Waivering debt in cases of domestic violence, criminal activity or emergency |
If the claim is the result of documented*
- domestic or family violence
- criminal actions by a third party
- emergency situation (fire, flood, etc)
outside the client’s control, approval may be obtained from the Team Leader Access and Demand (9/10) or the Coordinator Access and Demand (7/8) to waiver the debt.
*Documentation may include police reports or statements, medical or hospital reports or reports from Government Departments or other welfare or support agencies. |
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Appeal of Housing NSW decisions by clients
If a client disagrees with a decision Housing NSW has made, they should first discuss their concerns with a Client Service Officer. The next step if they still believe we made the wrong decision is to ask for a formal review of the decision. For information on how reviews work, the client can ask the Client Service Officer for a copy of the Reviewing Decisions fact sheet, or read the Appeals and Review of Decisions Policy.
Review of Housing NSW decisions by agents or landlords
If an agent or landlord disagrees with a decision Housing NSW has made, they should first discuss their concerns with a Client Service Officer. The next step if they still believe we made the wrong decision is to ask for a formal review of the decision. The agent or landlord should submit details of their dispute in writing to the Housing NSW.
Legislative Requirements
• Residential Tenancies Act, 1987
• Landlord and Tenant (Rental Bonds) Act 1977
Further Information
Forms
External Site
Office of Fair Trading Rental Services
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