The purpose of Affordable Rental is to help lower-income households gain financial traction by providing a below-market rent. This can mean a subsidy of up to 20%, so the extra money in your pocket can be used to clear any debts and assist in savings goals.
How it works
When you rent a home through Affordable Rental, there is an initial fixed term of five years, whereby an income-tested rent subsidy is applied. This subsidy is calculated based on your income and your rent set at the higher of either 80% of market rent, or 30-35% of your gross household income (but no higher than QLCHTs market rents).
An annual rent review is conducted each year, at which time evidence of income is requested, so that the rent subsidy may be recalculated.
To be eligible to apply for the Affordable Rental Programme you must first meet the general eligibility criteria. There is also an income threshold applied, calculated on the number of people in your household, and you can't have cash assets greater than $10,000 (not including KiwiSaver).
Affordable Rental Agreements
You can view our template Affordable Rental Residential Tenancy Agreement and Affordable Rental Agreement here. Please note that these are template agreements only and may be subject to change.