Homes Tasmania will apply a 3.5 per cent rent increase to eligible head lease arrangements from 1 April 2025, in accordance with Clause 5 of the Head Lease. This adjustment aligns with market conditions and supports sustainable property management and maintenance.

A model for future rent setting and annual adjustments is being developed within a new Head Lease policy. When finalised, the policy and associated procedure will provide clarity about how rent adjustments will be set under head lease arrangements, in a matter that is sustainable and supports a viable service system.

Eligibility

The 3.5 per cent rent increase applies to head lease arrangements where rent is set based on:

  • income-based calculations
  • market rent calculations
  • a negotiated discretionary amount.

For head lease arrangements involving rent set on income-based calculations, the increase will be capped at the lower of:

  • income-based calculation as at adjustment date
  • 3.5 per cent of the current rent.

The rent increase will not result in the total rent exceeding the current market rent value of the property.

Implementation and communication

The rent increase will be implemented on the commencement anniversary of the lease and will be applicable for anniversaries falling on or after 1 April 2025.

Contract managers will contact organisations ahead of the adjustment to discuss the changes. Organisations will also receive written confirmation detailing the new rent amount and effective date.

Further information

If you have any questions about the upcoming rent adjustments, please contact your contract manager or Homes Tasmania at hsp@homes.tas.gov.au for further details.