Income Related Rental (IRR) and Income Related Rental Subsidy (IRRS)
Most new OCHT tenancies are MSD income related rent tenancies. This means their rents are based on the market rent. Each year OCHT carries out an independent market rent review by a qualified residential valuer. OCHT supplies these rents, by property, to MSD who approve the rent. MSD calculates the Income Related Rent, which is the rent the tenant actually pays to OCHT, usually around 25% of their income. MSD top up the rent paid to the landlord to the agreed market rent. MSD annually review the Income Related Rent or if there has been changes in income or circumstances and they will increase or decrease the rent paid by the Tenant or the subsidy paid to the Landlord. OCHT plays no part in determining the portion of rent the tenant pays.
Tenants grand-parented to the Trust on 2 October 2016 through their existing tenancy agreements with the Council, experience no more than a net 5% increase in rent per annum. For the two years to 2018 that OCHT has used this approach, rent increases were 3.9% in 2017 and up to 4% in 2018.
At the time of applying for housing, and if it is determined that the applicant is not eligible for an MSD income related tenancy, OCHT may offer a subsidised rental, charging approximately 70% of market rent. Each year OCHT carries out an independent market rent review by a qualified residential valuer to determine market rents. Many tenants in this rental stream may qualify for an MSD accommodation supplement to assist them with their rental costs.
Rent Streams Once Housed
Once tenants are housed by OCHT, they remain in the same rent stream from the start of their tenancy until the end of their tenancy. On very rare occasions there may be a significant and persistent need to relocate and the tenants may be re-housed from the MSD public housing register, if approved by MSD. This would result in the tenant signing a new tenancy agreement with OCHT.
OCHT Rentals by Rental Streams*
*The Pie chart breakdown is based on May 2019 data