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Policy Update

Rental caps on Leasehold properties

In order to meet our objective to “house more people in need”, Metro has set an upper limit on the amount we will pay for properties leased in the private rental market. Due to concerns about the ever increasing costs in this program and its long term viability, changes were made to the funding model for this program in 2014 and we now receive a fixed annual budget from the Department of Family and Community Services to head lease 261 properties, regardless of the location/size of the property. If we can restrain costs in this program this allows Metro to lease additional properties to house more people. The major way we expect to achieve this is by leasing properties in less expensive suburbs, ensuring that tenants are not under-occupying properties and attempting to sign longer term leases with pre-agreed annual increases below 5%.

We therefore averaged the rents we were paying for our leasehold properties based on the bedroom size and as a result we have set the following caps:

  • Studio Unit- $400.00
  • 1 bedroom - $450.00
  • 2 bedroom - $520.00 (unit) $550.00 (house)
  • 3 bedroom - $620.00 (unit) $650.00 (house)
  • 4 bedroom - $720.00

There will be situations where Metro will agree to pay above these capped amounts based on an assessment of the individual’s circumstances. Tenants are referred to our Allocation Policy in relation to their entitlement to properties with external yards, or to an additional bedroom. Generally tenants who receive DSP, and who may require the assistance of a carer are entitled to an additional bedroom, as are Indigenous tenants. Tenants who are requesting approval to be housed in a high cost suburb and/or a particular location will be required to complete the Locational needs assessment form.

The right to an additional bedroom applies only to permanent tenants not those housed through transitional programs

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Suite 208,
1 Erskineville Rd
(corner of Wilson St)
Newtown NSW 2042
Tel: 02 9565 4599
Fax: 02 9557 9308

Our office hours are:

Monday, Tuesday, Thursday 10am – 4pm
Wednesday 1pm – 4pm
Friday by appointment only
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