Property manager

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Kāinga Ora Announces New ‘Hard Line’ on Tenants with Overdue Rent

In a significant policy shift, Kāinga Ora, New Zealand’s public housing agency, has announced a new approach to managing rent debt. Under this new policy, tenants who accumulate more than 12 weeks of unpaid rent will be at risk of eviction. However, the agency also plans to forgive over $8 million of rent debt that is considered unlikely to be repaid.

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Key Points of the New Policy

  1. Eviction Risk: Tenants who fail to pay rent for more than 12 weeks will face eviction. This measure aims to ensure that tenants meet their rental obligations and prevent large debts from accumulating.
  2. Debt Forgiveness: Kāinga Ora will forgive approximately $8.3 million of outstanding rent debt. This forgiveness is intended to help tenants who are making genuine efforts to repay their debts but are struggling to do so.
  3. Support for Tenants: The agency will continue to support households that fall on hard times and are making genuine attempts to get back on track with their rent. This includes providing assistance to tenants to manage their rent payments and reduce their debt.
  4. Clear Consequences: The new policy aims to provide clarity to tenants about the consequences of not meeting their rental obligations. This includes early intervention to prevent rent debt from escalating.

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Rationale Behind the Policy

Kāinga Ora’s Chief Executive, Matt Crockett, stated that the new approach is designed to address the issue of rent debt more effectively. The agency believes that a firmer stance on rent payments will encourage tenants to stay on top of their rent and prevent debts from becoming unmanageable. Additionally, the policy aims to provide a fair and reasonable approach to managing rent debt while ensuring that tenants who are struggling receive the support they need.

Impact on Tenants

The new policy is expected to have a significant impact on tenants, particularly those who are already struggling to meet their rent payments. While the debt forgiveness component will provide relief to some tenants, others may face eviction if they do not engage with Kāinga Ora and make efforts to repay their debts. The agency has emphasized that it will work closely with tenants to help them manage their rent payments and avoid eviction.

Kāinga Ora’s new policy represents a major shift in how the agency manages rent debt. By introducing clearer consequences for tenants who fail to meet their rental obligations and providing support for those who are struggling, the agency aims to create a more sustainable and fair approach to managing rent debt. The success of this policy will depend on the cooperation and engagement of tenants, as well as the effectiveness of the support measures provided by Kāinga Ora.