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Tenancy management manual Chapter 4: Leased properties November 2017

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Tenancy management manualChapter 4: Leased properties

November 2017

Revision history

Version Amended section Effective Details

1.0 November 2017 Incorporation of version control tableAccessible format

More informationTo find out about housing options visit the Housing website <http://www.housing.vic.gov.au> or contact your local Housing Office <http://www.housing.vic.gov.au/contact-a-housing-office>.

To receive this publication in an accessible format contact Housing Practice and Complex Support <[email protected]>.

Authorised and published by the Victorian Government, 1 Treasury Place, Melbourne.

© State of Victoria, Department of Health and Human Services, November 2017.

ISBN: 978-1-76069-146-2(pdf/online/MS word)

Available on the Tenancy management manual page on Services Providers website <https://providers.dhhs.vic.gov.au/tenancy-management-manual-leased-properties-word>.

Page 2 Tenancy management manual Chapter 4: Leased properties November 2017

Contents

Revision history........................................................................................................................................ 2

Introduction............................................................................................................................................... 6Philosophy.................................................................................................................................................. 6

Policy objective........................................................................................................................................... 6

Scope......................................................................................................................................................... 6

How to use this chapter.............................................................................................................................. 6

Leased properties..................................................................................................................................... 7Length of lease........................................................................................................................................... 7

Tenure in leased properties........................................................................................................................ 7

Non-metro leasing targets..........................................................................................................................7

Notification, inspection and approval process of initial targets...........................................................8Recording the property condition................................................................................................................8

Arranging minor works prior to tenanting leased properties........................................................................8

Water usage prior to tenanting leased properties.......................................................................................9

Property handover...................................................................................................................................... 9

Identification of a suitable applicant............................................................................................................9

Valid offers of housing................................................................................................................................ 9

Offers of larger accommodation.................................................................................................................. 9

Signing a tenancy agreement................................................................................................................... 10

Properties with a separately metered water utility.....................................................................................10

Tenancy management manual Chapter 4: Leased properties November 2017 Page 3

Pets in leased properties.......................................................................................................................... 10

Complaints from Landlord/Agent about a Departmental tenant................................................................11

Dispute between private landlord and DoH...............................................................................................11

Dispute between tenant and the Department............................................................................................11

Urgent maintenance requests................................................................................................................... 11

Non urgent maintenance.......................................................................................................................... 12

Disability modifications............................................................................................................................. 13

Tenant issued notice of repairs................................................................................................................. 13

Landlord identified tenant responsibility maintenance..............................................................................14

Departmental identified tenant responsibility maintenance.......................................................................14

Maintenance between departmental tenancies.........................................................................................14

Property substantially damaged by previous tenant.................................................................................14

Lease renewal negotiation........................................................................................................................ 15

Determining action under this policy.........................................................................................................15

Assessing the extent of any negative impact on the tenant and their household......................................16

Consideration of how the circumstances of the case impact on the Director’s objectives under this policy........................................................................................................................................................ 16

Balancing any potential negative impact of eviction on the tenant and household with the Director’s policy objective......................................................................................................................... 16

Where unnecessary to evict to achieve policy objective...........................................................................17

Alternative options considered where it is necessary to evict to achieve policy objective.........................17

Tenant relocation...................................................................................................................................... 17

Lease has less than six months to run......................................................................................................19

Page 4 Tenancy management manual Chapter 4: Leased properties November 2017

Landlord wants to end the lease with the DoH..........................................................................................19

Lease cessation responsibilities...............................................................................................................20

Lease notification and property handover...........................................................................................20Role of the FSO........................................................................................................................................ 20

Advise the applicant of their tenure with the Department..........................................................................21

Properties with a separately metered water utility.....................................................................................21

Water usage prior to tenanting leased properties.....................................................................................21

Complaints from Landlord/Agent about a Departmental tenant................................................................22

Disputes between the Landlord/Agent......................................................................................................22

Dispute between the Department and tenant, or between tenants...........................................................22

Urgent maintenance requests................................................................................................................... 23

Emergency after hours maintenance........................................................................................................23

If the Landlord/Agent does not undertake the repairs...............................................................................23

Repairs to non-standard items.................................................................................................................. 23

Non-urgent maintenance - Capital Works.................................................................................................24

Landlord/Agent identified tenant responsibility works...............................................................................24

Department identified tenant responsibility works.....................................................................................24

Maintenance between tenancies..............................................................................................................24

Property has been substantially damaged................................................................................................25

Facilitating an access request from Landlord/Agent.................................................................................25

Lease extension successfully negotiated..................................................................................................25

Department initiated termination – Lease due to expire............................................................................26

Lease extension unsuccessfully negotiated..............................................................................................26

Tenant initiated termination – Lease still current.......................................................................................26

Lease has less than six months to run......................................................................................................27

Early lease cessation................................................................................................................................ 27

Leased Property Acknowledgement Form...........................................................................................28Lease Property Acknowledgment.............................................................................................................28

120 Day Notice Covering Letter................................................................................................................30

Tenancy management manual Chapter 4: Leased properties November 2017 Page 5

Definitions

Term Definition

Eligibility criteria for rental housing

The criteria used by the Director of Housing (DoH) to assess eligibility for rental housing. The eligibility criteria are listed in the Allocations Policy and Procedure manual.

Lease Residential Tenancies Agreement between the Director of Housing (DoH) and a private agent/landlord, which allows for sub-lease to an eligible applicant on the waiting list.

Lease Management Officer (LMO)

A central office position responsible for the coordination of lease agreements and liaison with owners and agents on behalf of the Director of Housing.

Outstanding charges Costs that have been charged against a tenancy where the due date of payment has expired. Outstanding charges include all charges defined in the Eligibility chapter of the Allocations Policy and Procedural manual.

Resident A member of a household who is not party to the Tenancy Agreement and lives with a tenant in a public housing rented property for three or more nights per week. The resident must be included in the household rental rebate application and their income and assets included in the rental rebate assessment.

Residential Tenancy Agreement

A leasing contract under the Residential Tenancies Act 1997 (RTA) signed by the DoH and the tenant that specifies the rights and responsibilities of the landlord and the tenant.

Tenant A person who has signed a tenancy agreement with the Director of Housing and who therefore has all the tenancy rights and responsibilities as specified in the tenancy agreement.

Tenant in community managed housing

A person who has signed a tenancy agreement with a community agency and who therefore has all the tenancy rights and responsibilities as specified in the tenancy agreement.

Page 6 Tenancy management manual Chapter 4: Leased properties November 2017

Purpose and Scope

Introduction

The Director of Housing (DoH) generally houses applicants from the various waiting list categories into housing she/he owns. However, there are times when privately owned property becomes available for Public Housing use through the leasing program.

Privately owned properties leased through the leasing program supplement Director owned stock, providing housing options in areas where waiting list demand is high and where it may not be possible to purchase property.

PhilosophyOne of the objectives of the Housing Act 1983 (HA) is to ensure that every person in Victoria has adequate and appropriate housing at a price within his or her means. The Director seeks to facilitate this objective primarily through the provision of Public Housing.

There is a high demand for Public Housing. Another objective of the HA includes the distribution according to need, of government housing financial assistance. The Director’s management of a waiting list is the primary strategy for meeting these broad obligations.

The leasing program provides further opportunity to alleviate housing need in the community and the Director’s allocations policies determine how leased properties are allocated when they become available.

Policy objectiveThe Leased Properties Policy recognises that the tenants of leased properties require a level of security of tenure, similar to tenants in Director owned properties. In negotiating the greatest lease period possible with the property owner, the Director attempts to provide as much certainty of tenure as possible to the tenant while working within the limitations of the head lease.

When a lease with a private owner is not renewed, the Director must re-house the tenant. The process followed is outlined in the Director’s Relocation Policy. The relocation housing may be another leased property, although the preferred approach is to rehouse in a Director owned property where this is possible at the time.

ScopeThe policy and procedures of this chapter in conjunction with the Housing Charter Chapter in the Business Practise Manual applies to all applicants and proposed occupants of a leased property.

This chapter is primarily about clarifying the relationship between the Department and the agent/landlord from whom a property is leased. Tenants residing in leased properties are subject to the same policies and procedures as tenants residing in Departmental owned accommodation, and therefore have the same rights of appeal.

How to use this chapterThe procedures should be read in association with the policy, and where appropriate, referral should be made to other Departmental manuals and documents to ensure the intent of the policy is achieved when administering procedures.

Tenancy management manual Chapter 4: Leased properties November 2017 Page 7

Leased Properties Policy

Leased properties

Length of leaseProperty and Assets Branch leases all properties through licensed real estate agents. By their very nature, leased properties are short term housing options, and whilst Property and Assets Branch negotiates the longest lease possible with estate agents, the majority of leases secured range between one and five years.

The maximum lease period under the RTA is 5 years.

Tenure in leased propertiesAn applicant allocated a leased property retains the same tenure rights as applicants housed into DoH owned stock.

Where the lease is not renewed the Department re-houses tenants in accordance with the Departmental Relocation Policy, into alternative accommodation, which is either leased, or DoH owned.

Departmental tenancies in properties leased through the private market for RGS are managed the same way as tenancies in Director’s owned RGS properties.

Applicants who require major or full modifications generally cannot be housed into leased properties as such works sometimes cannot be undertaken in this type of accommodation and / or doing so does not align with the Director’s investment strategy in housing and providing security of tenure for its tenants. Each case is considered on its merits in light of the extent of modifications required, costs, and waiting list considerations.

The areas of responsibility for the management of this process are as follows:

• Property and Assets Branch is responsible for negotiating the lease with the landlord/agent on behalf of the DoH.

• Property and Assets Branch is responsible for start of lease and end of lease maintenance works, and for assessing suitability of the property including undertaking the initial technical inspection.

• Finance is responsible for the management of ongoing lease payments and adjustments thereof.• The Lease Management Officer (LMO) is responsible for the liaison between the Department and the

landlord.• The LMO is responsible for ensuring that Property and Assets Branch are advised to source an

appropriate replacement target for each lease that will not be renewed.• The local Office may inspect the property for suitability in terms of property attributes (i.e. location,

bedroom size etc.), not for technical inspection.• The local Office is required to allocate the property according to pre-determined target setting method.• The local Office is required to initiate the relocation of the household where the lease is not to be

renewed through the service of an appropriate Notice to Vacate (usually 120 day), and the application of the Department’s Relocation Policy referred to in the Relocation Manual.

Non-metro leasing targetsWhere Property and Assets Branch has leasing targets in rural regions, the procurement process requires local offices to identify, inspect and recommend properties appropriate to their needs.

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The role of Property and Assets Branch is to follow up with the relevant estate agent to negotiate lease term and payments in accordance with the Valuer General’s assessment and recommendation as per the procedure for Rural Leasing Target.

Target Approval/ Lease Decision

Notification, inspection and approval process of initial targets

All potential leasing properties are inspected by Property and Assets Branch and a representative of the Valuer General’s Office.

The Property and Assets Branch Field Services Officer’s (FSO) role is to determine the technical suitability of the property in accordance with the Transitional Housing Leasing Standards.

Property and Assets Branch will negotiate to lease the property if suitable on behalf of the local Housing Office.

Property and Assets Branch as a courtesy, will advise the Tenancy and Property Manager/Housing Manager (HM) or equivalents and the Team leader when a property is under consideration for leasing. The local Office may inspect the property, however the lease decision is made by Property and Assets Branch in consultation with the attending FSO.

Upon the approval of the property, Property and Assets Branch negotiates and signs the lease with the estate agent. Property and Assets Branch also arranges payment of the first month’s rent in advance and security deposit (bond).

Recording the property conditionProperty and Assets Branch is responsible for signing the Property Condition Report (PCR). Property and Assets Branch also takes photographs as an additional record of the property condition. The photographs and PCR are forwarded to the Lease management Officer (LMO) to be held on file.

Local Offices are required to arrange a Tenancy Condition Report, advised in the Maintenance Manual for tenants of leased properties as per current practices.

Pre-Tenancy MaintenanceArranging minor works prior to tenanting leased propertiesProperty and Assets Branch is responsible for the technical assessment and identification of pre-tenancy maintenance works for all leased properties including those leased for RGS.

Where appropriate, works that are identified as landlord responsibility are referred back to the landlord for attention. Only works that are minor in nature are undertaken at the Department’s expense to bring the property up to the Transitional Housing Leasing Standards.

Tenancy management manual Chapter 4: Leased properties November 2017 Page 9

Water usage prior to tenanting leased propertiesThe Department pays for the cost of water usage between taking possession of a leased property and tenanting that property with an eligible applicant, and during the period a property is vacant between tenancies.

Property handoverThe LMO is required to forward to the local Office a copy of the Property Condition Report, together with a copy of the executed lease. Property and Assets Branch is required to forward a copy of the Handover Notice to the local Office.

The extent of pre-tenancy maintenance works are determined by Property and Assets Branch in conjunction with the LMO, and the keys are handed over to the local Office directly by Property and Assets Branch together with a write-up of required works.

The local Office FSO is responsible for raising the works order to engage the Head Contractor to undertake the required works in accordance with Property and Assets Branch’s write-up. No additional works can be arranged without prior endorsement of the LMO. The LMO is advised once the property is vacant tenantable.

Allocation of leased propertiesIdentification of a suitable applicantThe Handover Notice includes the Housing Program Item Number to enable local Offices to identify the most appropriate applicant for each property from information supplied by central office during the initial target setting process.

Where the most suitable, targeted applicant has been allocated already and no alternative applicants can be identified from the initial target setting process, the property is allocated in accordance with the Order of Allocation referred to in the Introduction and Overview Chapter of the Allocations Manual.

Valid offers of housingApplicants allocated a leased property retain the same tenure rights as those offered DoH owned properties. Therefore, offers that meet the Department’s Offers of Housing Policy referred to in the Offers of Housing Chapter of the Allocations Manual are valid offers of accommodation.

The Department informs applicants about their public housing tenure rights at the time of offer, and again at tenancy sign-up.

Refusal on the grounds that the property is a leased property is counted as a refusal of a valid offer of accommodation, unless the property is being re-tenanted and has less than six months remaining on the lease.

Offers of larger accommodationThe Allocations Housing Size Guidelines outlined in the Matching Clients with Housing Chapter of the Allocations Manual does not apply to offers of leased accommodation made to single applicants, this is due to the lack of one bedroom properties being available in the private rental market in Victoria. These applicants may be offered one or two bedroom accommodation.

All other applicants are offered accommodation appropriate to their needs.

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Tenancy sign upSigning a tenancy agreementThe standard DoH Tenancy Agreement is signed with the incoming tenant when a new tenancy for a leased property is created. This agreement is week to week and complies with the requirements of the RTA.

The Department informs applicants about their public housing tenure rights at the tenancy sign-up. The Department also requests each tenant to sign a Leased Property Acknowledgement Form on page 28 that confirms their understanding that they will be residing in a leased property, and that they may be issued a Notice to Vacate to facilitate their relocation at a future date.

Properties with a separately metered water utilityThe WA1989 gives water utility companies the power to bill a landlord (including the Department) of any separately metered rental property where a landlord fails to notify the company of the incoming tenant’s details (Bulk metered properties are not affected as the Department pays the water bill and recoups payment via the weekly service charge).

Tenant’s obligations regarding payment of water bills are detailed in the Service Charge Details of the RTA (s.52) and the Using water in public housing Information Leaflet.

To avoid liability, the Department provides a report to all water utility companies, notifying them of new Departmental tenancies with separately metered water services.

Pets in leased propertiesThe DoH signs a standard lease agreement with private landlords, which incorporates a ‘no pets’ lease clause. Permission must be sought from the owner via the LMO to allocate a leased property to an applicant with a pet.

Tenancy Management Policy - Leased propertiesThe Department has developed a range of Policy and Procedure documents to support Housing Services Officers (HSOs) manage the day-to-day issues that arise in the management of Public Housing tenancies.

Policy and Procedure documents that pertain to the tenancy management functions of HSOs for DoH owned RGS properties apply without limitation to the management of tenants residing in leased properties. These documents include:

• Rental Rebate Policy and Procedure Manual• Relocation Policy and Procedure Manual• Tenancy Management Manual and• Business Practice Manual• Operational guidelines.

Tenancy management manual Chapter 4: Leased properties November 2017 Page 11

Dispute Management/ ResolutionComplaints from Landlord/Agent about a Departmental tenantThe Landlord/Agent may complain about the Departmental tenant of a leased property, or advise that from a visual inspection that it appears that the property is not being properly maintained by the tenant.

Landlords/Agents are advised during the lease negotiation process that concerns about the property or Departmental tenant should be addressed directly to the LMO.

Complaints received directly by the local Housing Office should be referred to the LMO. Housing Offices must not negotiate directly with a Landlord/Agent unless expressly authorised by the LMO.

Complaints may be referred to the local Office Team leader by the LMO for follow up. Where complaints are referred to a local Office, the LMO must be advised of the outcome of the investigation within seven working days.

The LMO will then advise the landlord/agent directly of the outcome of the complaint.

The LMO may be able to assist the office by managing the landlord/agent’s expectations with regard to the evidence required for the Department to initiate legal action against a tenant for breach of the RTA.

The LMO may also liaise with the landlord/agent about timelines for the resolution of disputes about which the landlord/agent might otherwise seek to become involved in, thereby assisting to manage the risk that action could be taken against the DoH directly for failing to manage the sub-tenancy in accordance with its obligations under the RTA.

Dispute between private landlord and DoHLandlords/Agents are advised during the lease negotiation process that concerns about the lease agreement with the DoH, or any other contractual matter, should be addressed directly to the LMO.

Complaints received directly by the local Office should be referred to the LMO. Local Offices must not negotiate directly with a Landlord/Agent unless expressly authorised by the LMO.

Dispute between tenant and the DepartmentThe majority of disputes that are likely to arise between the tenant and the Department will be of a nature that can be managed through existing tenancy management processes, and in accordance with departmental policy and operational guidelines in this manual.

Maintenance of leased propertiesDuring the course of the tenancy, maintenance to the property may be required. The Department determines responsibility for maintenance works on the basis of the type and urgency of the works required.

Requests for maintenance works are reported directly by the tenant to the local Office. Local Offices determine the works that will be done as a Departmental expense, and refer all other works to the LMO for follow-up with the landlord/agent as outlined in the Maintenance Manual.

Urgent maintenance requestsRequests for urgent maintenance works that fall within the definition of ‘Urgent Works’ as prescribed under the RTA (s.3) are actioned immediately. Such works include:

Page 12 Tenancy management manual Chapter 4: Leased properties November 2017

• a burst water service• a blocked or broken sewerage system or toilet• a serious roof leak• a gas leak• a dangerous electrical fault• flooding or serious flood damage• serious storm damage• fire damage• a failure or breakdown of the gas, electricity or water supply to the rented premises• a failure or breakdown of any essential service or appliance, provided by the landlord, on the rented

premises for hot water, cooking, heating or laundering• an appliance, fitting or fixture provided by the landlord that uses or supplies water that is

malfunctioning in a way that results, or will result, in a substantial amount of water being wasted• any fault or damage that makes the rented premises unsafe or insecure. For example, the following

works must be completed as urgent works because there is a health or safety risk to the tenant or a household member:– serious damage to doors, windows or side gates– a serious fault in stairs, handrails, ramps, pathways which could result in personal injury– faulty internal grab rails or shower seats– public lighting– lost, stolen or misplaced keys– any damage of a prescribed class.

Legal Services and the Registrar of the Victorian Civil and Administrative Tribunal (VCAT) advise that there is no standard definition for the term ‘prescribed class’. Damage of a prescribed class is determined by VCAT on a case-by-case basis.

Where the tenant reports that a capital item such as the hot water service has failed, or that another essential service has failed, for example the sewer is blocked, the local Office requests the Head Contractor to urgently provide a written report on the fault.

Urgent works that are capital expenditure items such as hot water services, stoves, heaters, replacement of sewer and major electrical faults, etc. are generally considered to be landlord/agent responsibility, see the Maintenance Manual.

Where the Head Contractor’s report states that the capital item must be replaced, details of the report including the SC Order number are emailed to the LMO who in turn arrange for the landlord/agent to repair the fault.

Where the capital item has not been repaired within 12 hours of the advice to the LMO, the Housing Office arranges for the Head Contractor to replace that item. The LMO then recovers the costs from the landlord directly on behalf of the Department, as per RTA (s.72(2)).

Where the fault is reported by the tenant during the last business day of the week or immediately prior to a public holiday, the local Office arranges for the Head Contractor to carry out the required repairs, and advises the LMO of action taken. The LMO will then attempt to recover the costs from the landlord directly on behalf of the Department.

The RTA (s.72(1)) authorises a tenant (the Department) to arrange urgent repairs if reasonable steps have been taken to arrange for the landlord/agent to repair/replace the faulty item and the landlord/agent has failed to do so.

Non urgent maintenanceThe Department arranges for the Head Contractor to attend to minor non-urgent responsive maintenance works in leased properties, for example, to repair a damaged clothesline, clear partially blocked sink,

Tenancy management manual Chapter 4: Leased properties November 2017 Page 13

adjust a blind. The Department also arranges for minor non-urgent responsive maintenance works that are health and safety items, as outlined in the Maintenance Manual.

Where works are required to extend the life of the property, for example internal or external painting, replacement of rotting window sills, re-blocking, partial/full replacement of spouting etc., the Department refers the works to the landlord via the LMO.

The Department also considers whether works are required to be completed immediately or could be left until the end of the DoH tenancy. Where works can be left to the end of the DoH tenancy and delaying the works does not impair the tenant’s rights regarding the physical amenity of the premises, the tenant is advised that the works will not be completed. These works are referred to the landlord/agent via the LMO.

Disability modificationsThe Department may be constrained in its capacity to undertake modifications to leased properties. The DoH’s duties as tenant under the RTA (s.61(64)) include a duty to avoid damaging the rented premises, and a duty not to install fixtures or fitting without the landlord’s consent.

The Department undertakes minor modifications to meet to needs of tenants in leased properties where:

• The modifications will not require prohibitively expensive property restoration at the end of the lease• The works have been previously approved by the landlord and the LMO.

The Department does not generally undertake extensive disability modifications to leased properties as such modifications may not be something a private owner would ordinarily be required to allow, i.e. the modifications may be such that the premises will not be able to be restored to the condition they were in before the modifications were made. In addition, due to the short term nature of private rental leases, the Director considers it is unlikely that the investment in modifications would result in a sustainable outcome for the tenant.

In light of this, the Department may seek to relocate tenants where appropriate disability modifications raise one or more of the above issues. In deciding what action to take, Department takes into account the extent to which requiring a tenant to transfer may negatively impact on them, in particular their rights under the Charter of Human Rights and Responsibilities Act 2006 (Charter). Decisions are made in line with the policy and procedure under the heading determining action under this policy.

Tenant issued notice of repairsA tenant may give written notice that non-urgent repairs are required to a leased property in accordance with the RTA.

Where the local Office makes an assessment that the repairs can be left to the end of the DoH tenancy and delaying the works does not impair the tenant’s rights regarding the physical amenity of the premises, the Department refers the repairs to the landlord/agent. Ultimately, DoH is bound by the RTA and must ensure the premises is maintained in good repair. Accordingly, if the tenant requires the work to be done, and it is clear the DoH is bound to do the works, then the DoH should organise for them to be done. Who is responsible to do these works will depend on the nature of the lease between the DoH and the head owner. If that lease provides that DoH is to do the works, then DoH will be require to do the works. If that lease provides that the provide owner is to do the works, then DoH can arrange for the private owner to do the works.

If it appears that the works do not fall under the Director’s duty of repair under the RTA, the tenant is advised that they are entitled to apply to the Director, Consumer Affairs Victoria to conduct an investigation if the landlord has not carried out the repairs within 14 days. After receiving the Inspection report, the tenant has 60 days to make an application to VCAT to investigate whether the Department as

Page 14 Tenancy management manual Chapter 4: Leased properties November 2017

landlord, is in breach of a duty to ensure the premises are maintained in good repair as per RTA (s.75(2)).

The Department refers the Director’s Inspection report about the required repairs to the landlord/agent via the LMO for action (where the lease between the landlord and the Director requires the landlord to complete the repairs).

Where the works are minor non-urgent, or there is a concern about the tenant’s health and safety, the Department arranges for the Head Contractor to carry out the repairs.

Landlord identified tenant responsibility maintenanceThe Department aims to recover costs where repairs to a tenanted or vacant property are necessary as a result of damage or neglect caused during a tenancy.

Where the LMO reports landlord/agent identified tenant responsibility maintenance works, the local Office inspects the property with the tenant’s consent to determine the tenant’s liability. Reference is made to the original Property Condition Report and the Tenancy Condition Report completed at the commencement of the tenancy.

Where it cannot be determined that the tenant is responsible for the works identified by the landlord, the Department arranges for the repairs to be carried out.

When the Department raises a SC Order for damage to a property that is considered to be the responsibility of the tenant, the work is raised as a Maintenance Claim Against the Tenant (MCAT).

The local Office has responsibility for advising the LMO once the repairs have been finalised.

Departmental identified tenant responsibility maintenanceThe Department aims to recover costs where repairs to a tenanted or vacant property are necessary as a result of damage or neglect caused during a tenancy.

When the Department raises an SC Order for damage to a property that is considered to be the responsibility of the tenant, the work is raised as a MCAT.

The Department makes application to VCAT to seek an Order for Compensation when the contractor has completed repairs to the property and final costs of the repairs have been established and the tenant has not accepted responsibility for the damage.

Maintenance between departmental tenanciesThe local Office undertakes vacated maintenance works between Departmental tenancies to the extent that tenant responsibility maintenance works are identified and repaired, and other works are completed to bring the property to original ‘as leased’ standard.

Reference should be made to the Property Condition Report and Tenancy Condition Report on file to establish the original property maintenance standard or condition.

Property substantially damaged by previous tenantLocal Offices are required to manage substantially damaged properties as per DoH owned stock by bringing the property to re-lettable standard.

Tenancy management manual Chapter 4: Leased properties November 2017 Page 15

Access to property by Landlord/ AgentThe landlord/agent has the right to inspect leased properties. This inspection is facilitated and attended by local departmental Office staff.

An initial inspection by the landlord/agent may be conducted three months after the first tenancy commencement date and six monthly thereafter RTA (s.86). The landlord/agent is requested to provide 14 days ‘notice of entry’ to enable adequate time to notify the tenant.

Landlords/Agents are encouraged to inspect properties during vacant periods. HSOs are required to notify the LMO as soon as a property becomes vacant to facilitate this inspection process.

The landlord/agent is required to provide a ‘notice of entry’ to the LMO to access a leased property where the premises is to be sold or used as a security for a loan, where entry is required for valuation purposes or where the landlord/agent believes the tenant has failed to comply with their ‘duties’ under the Act or the tenancy agreement. Where a tenant refuses access, a breach of duty notice is issued by the landlord allowing the tenant a period of three days to comply with the entry requirements.

A notice of entry is required by the landlord/agent where access is required when a Notice to Vacate (NTV) or notice of intention to vacate is received, and entry is required to show prospective tenants, or where entry is required to carry out ‘duty’ (such as maintenance works) under the act or the tenancy agreement or where entry is required to enable inspection of the premises and entry for that purpose has not been made within the last 6 months. Where the tenant refuses entry by the landlord, a breach of duty notice may be issued (see Access to Director owned and managed Properties Chapter and Public housing tenant information: Tenancy breaches in this manual).

Lease renewalLease renewal negotiationThe Department aims to renew leases between the DoH and landlords/agents where the leased properties meet the ongoing requirements and maintenance standards of the Department.

The LMO manages the lease renewal negotiations with the landlord/agent on behalf of the DoH, and commences these negotiations approximately six months prior to the expiration of the lease.

Where possible, the Department will attempt to conclude lease renewal negotiations prior to the mandatory notice period required by local Offices. Where this is not possible, local Offices are advised at the earliest possible time of lease renewal negotiation outcomes.

Tenancy Termination – Leased propertiesDetermining action under this policyWhen determining whether to issue a notice to vacate to the tenant of a leased property the Director must consider:

• the individual circumstances of the tenant and other household members, including their rights under the Charter of Human Rights and Responsibilities Act 2006 (Charter), and whether by evicting and relocating the tenant and residents these rights are limited

• if Charter rights are limited, whether the limitation is reasonable and justified

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• whether there are any less restrictive means than eviction to achieve the Director’s policy aim.

Assessing the extent of any negative impact on the tenant and their householdIn assessing the individual circumstances, the Director will consider the extent of any potential negative impact which issuing the notice may bring about for a tenant and their household and offering to relocate them to an alternative property, for example whether eviction:

• may negatively impact on the person and their family’s health (including mental health) (for example the tenant or a household member has a life threatening health condition that would be significantly aggravated by eviction)

• may negatively impact on the person and their family’s continuous and sufficient links with the community (their home)

• may negatively impact on the family unit• may negatively impact on any children residing in the premises (for example, could eviction result in

children having to be placed in care)• may negatively impact on the person and their family’s ability to practise their culture, religion or

language.A decision to evict and offer to relocate will usually have a negative impact on one or more of the factors listed above. Therefore consideration must be given to the extent of the impact in order to balance any such impact against the Director’s policy objective.

Consideration of how the circumstances of the case impact on the Director’s objectives under this policyIn considering whether or not to issue a notice to vacate and offer to relocate the tenant to an alternative property, the Director will balance the extent of any likely potential negative impact of eviction on the tenant and their household with factors of the case that impact on the Director’s objectives under this policy, such as:

• whether the Director is required to evict because the head landlord no longer wishes to continue with a further lease at the property

• to ensure leased properties meet the ongoing Departmental maintenance and housing standards

Balancing any potential negative impact of eviction on the tenant and household with the Director’s policy objectiveTo reach a decision, the Director balances the extent of any potential negative impact of eviction on the tenant and their household with the factors of the case that impact on the Director’s objectives under this policy. This is known as justifying the decision.

In doing so the Director will assess the strength of the factors which impact on the objective, and the extent to which they cumulatively (i.e. together) impact on the Director’s objective. Each case will be different.

Once the factors of the case have been assessed, the Director will consider if the potential negative impact on the tenant and their household (which eviction may bring about) is necessary for the Director to achieve the policy objective, which is to provide the safety and security of tenants. It is useful to think about whether achieving the policy objective outweighs the potential negative impact on the tenant and their household.

In circumstances where the head landlord no longer wants to lease the property to the Director, the Director will have no option but to end the tenancy with the Public Housing tenant and to offer to relocate them to an alternative property. Therefore it will be considered necessary for the Director to end the tenancy.

Tenancy management manual Chapter 4: Leased properties November 2017 Page 17

Where unnecessary to evict to achieve policy objectiveIn cases where it is assessed as not necessary to bring about the potential negative impact to the tenant and their family to achieve the policy objective, the Director will not issue a notice to vacate. Here the Director will need to instead seek a renewal of the lease with the head landlord, so its lease with the public housing tenant may continue.

Alternative options considered where it is necessary to evict to achieve policy objectiveIn cases where it is assessed as necessary to bring about the potential negative impact to the tenant and their family to achieve the policy objective, the Director will consider whether there are any alternatives reasonably available - to eviction - which allow the policy objective to be met. Any alternative options reasonably available will be adopted.In circumstances where the head landlord no longer wants to lease the property to the Director, the Director will have no option but to end the tenancy with the Public Housing tenant and to offer to relocate them to an alternative property. There will generally be no other option reasonably available for the Director.

Departmental Initiated Tenancy Termination: Lease due to expirePrior to the expiration of the lease agreement the DoH will endeavour to renegotiate a new lease or an extension of the current lease agreement with the private owner.

All DoH tenancy agreements are week to week, and as such do not include a tenancy end date. The DoH is still required to comply with the provisions of the RTA (s.261), if the private landlord serves a notice to vacate seeking to end the fixed term tenancy with DoH (60 day notice if tenancy is less than 6 months or 90 day notice if tenancy term is 6 months or more). In order to do this, DoH’s tenants residing in properties leased through the private market, and subleasing from the DoH, must be served with appropriate notice when the fixed term agreement between the DoH and the agent/landlord is nearing expiration. The DoH is required to give its tenants a minimum of 120 days’ notice to end the tenancy.

The LMO will notify the local Office prior to the expiration of a fixed term lease agreement to ensure maximum time to relocate the tenant and undertake vacated maintenance works, and enable the Director to comply with any notice served by the private landlord ending the fixed term tenancy. Because the DoH is required to give its tenants 120 days’ notice, this will necessarily need to occur with sufficient time to enable the Director to serve a 120 day notice on its tenants prior to the expiration of the lease (if this decision is ultimately taken), to obtain possession via an application at VCAT (if required) and to make the property ready for the landlord.

Upon notification from the LMO that the lease is to expire, the local Office issues the tenant a 120-Day Notice Covering Letter on page 30, together with a covering letter of explanation. In order to decide whether or not to issue a notice to vacate staff must make a decision in accordance with the policy / procedure as outlined in this chapter in section determining action under this policy:

If a tenant wishes to apply to VCAT to challenge the validity of a 120 day notice to vacate, they must do so within 60 days of receiving the notice.

Tenant relocationThe Department relocates households living in leased properties before the expiration of the lease between the DoH and the landlord/agent, as outlined in the Relocation Manual.

Page 18 Tenancy management manual Chapter 4: Leased properties November 2017

As the relocation is a Departmental instigated process, the relocation for lease cessation purposes does not constitute a tenant initiated transfer and therefore does not affect any current or future transfer application that the tenant may wish to make.

All relocation policy and procedures are applied including the payment of relocation costs.

Relocation from leased properties is essential. The local Office is required to liaise closely with the tenant to ensure they can be relocated to alternative accommodation prior to the expiration of the 120 Day Notice Covering Letter on page 30, or shortly thereafter.

Where relocation is required for the lease handback to proceed and the tenant does not wish to relocate, the Department actively assists the tenant in exploring other housing options. These options may include showing the tenant through available Departmental accommodation vacant at the time, informing them of the Departmental Bond Loan Scheme, and sourcing alternative leased properties through the private rental market.

If the tenant still refuses to relocate, the HM/ Tenancy and Property Manager or equivalents can approve extra offers of housing in addition to the standard number of offers.

If at the expiration of the 120 Day Notice the tenant remains in possession of the premises and there is little likelihood that they will consent to relocation, the Departmental again negotiates with the landlord/agent via the LMO for additional lease time, as per RTA (S.263, 322 and 326).

Where additional lease time cannot be negotiated, application is made to VCAT for an Order for Possession – note this application can only be made after the expiration of the 120 day notice period. A Warrant of Possession is executed only as a last resort after exhausting all other alternative housing options, a minimum of 21 days prior to the expiration of the lease between the DoH and the agent/landlord.

An application for a Warrant of Possession in these circumstances must be endorsed by the Director, Service Implementation and Support.

Tenant Initiated tenancy termination: Lease still currentAs referred to in the Terminating Tenancies and Deceased Estates Chapter of this manual, the Department terminates a tenancy agreement and takes vacant possession of the rental property when any of the following occur:

• the tenant transfers to another Departmental property• the tenant moves out of Public Housing, for example the tenant is moving into private rental or they

have bought their own home• the Department obtains a Warrant of Possession from the Victorian Civil and Administrative Tribunal

(VCAT) and the warrant is executed• the Department obtains an Order of Abandonment from VCAT as a result of the tenant abandoning

the property• the tenant is deceased, and

– there are no remaining household members eligible for a transfer of tenancy, and the legal representative offers up vacant possession

– possession is granted by VCAT.

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Reletting a leased propertyThe Department aims to relet all leased properties as quickly as possible.

Leased properties with less than six months remaining on the lease agreement are re-offered to an appropriate applicant, however offers of such properties may be refused by an applicant, and if refused are not counted as a valid offer.

Lease has less than six months to runWhen a leased property with less than six months remaining on the lease is repeatedly refused by applicants, and the Region cannot find an alternative use for the property, an Asset Management Reletting status RAM is applied.

The property may be used for short term local management purposes, or the LMO may be contacted with a view to exploring alternative uses for the property, for example as a Transitional Housing Manager (THM).

Landlord /Agent issues Notice to VacateLandlord wants to end the lease with the DoHThe DoH enters into fixed term tenancy agreements of varying duration, however it is the fixed term nature of these arrangements that provides the Department with a degree of certainty that the landlord/agent will not end the lease prior to the end of the term.

The RTA states that a landlord under a fixed term tenancy agreement may, before then end of the term of the tenancy agreement, give the tenant a notice to vacate that specifies a date that is at the end of the term.

In the case of tenancy agreements between DoH and private landlords, which are of greater than six months, the notice must be given not less than 90 days prior to the end of the tenancy agreement. DoH still needs to give its tenants a minimum of 120 days’ notice to vacate, to end their tenancy. If the between DoH and private landlords, is less than six months, the notice by the private landlord must be given not less than 60 days prior to the end of the tenancy agreement. DoH still needs to give its tenants a minimum of 120 days’ notice to vacate, to end their tenancy.

There are limited circumstances under which a landlord/agent may be entitled to apply for a possession order prior to the expiration of a fixed term tenancy agreement, and under which reduced notice periods apply. In such situations the LMO liaises with the local Office and the agent/landlord to manage the relocation of the tenant at the earliest possible opportunity.

As a decision to end the lease agreement between the Director and private landlord/agent results in the Public Housing tenancy terminating and the public housing tenant having to relocate, this may impact adversely on the public housing tenant.

Even in circumstances where the head landlord wishes to end the tenancy with the Director, the Director will need to consider the impact of eviction and relocation may have on its Public Housing tenant – even though the Director will be required to relocate its tenant. The Director follows the procedure outlined at when making a decision.

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Lease cessationLease cessation responsibilitiesWhere negotiations between the LMO and the landlord/agent do not result in renewal of a lease, the property is returned to the landlord/agent.

Local Offices are required to undertake basic cleaning, rubbish removal, MCAT and garden maintenance works prior to referring the property to the LMO for final maintenance assessment and disposal.

Once the minor maintenance works are completed, the keys are returned to the LMO together with the Property File. The LMO arranges final maintenance works through Property and Assets Branch to bring the property to a condition comparable to when it was initially leased by the DoH.

The LMO manages the final negotiation and lease cessation process on behalf of the DoH, including the deactivation of the property in HiiP. The local Office is required to advise the LMO of pending legal action to recover outstanding MCATs.

Leased Properties Procedures

Lease notification and property handover

A copy of the Property Condition Report and executed lease are forwarded to the local Office by the LMO via internal mail within two days of the finalisation Property and Assets Branch’s pre-tenancy maintenance inspection.

A copy of the Handover Notice is forwarded by Property and Assets Branch within two days of handover.

Upon receipt of these documents, create a property file and retain for future reference.

The keys to the property will be forwarded by Property and Assets Branch within 2 days of the LMO endorsing Property and Assets Branch’s assessment of required works, together with the vacant unit write-up.

Role of the FSOUpon receipt of the keys and Property and Assets Branch’s write-up of required works, raise a SC Order to the Head Contractor. The scope of the SC Order should be limited to the works identified by Property and Assets Branch.

Issue the SC Order and keys to the Head Contractor and monitor vacant unit timelines. Advise the responsible HSO of the anticipated return date to enable timely allocation.

Once the vacant unit has been returned by the Head Contractor and you are satisfied that the works have been finalised, change the property status, and email the LMO advising the date the works were completed.

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Offering leased propertiesAdvise the applicant of their tenure with the DepartmentOffers that meet the Department’s Offers of Housing Policy are valid offers of accommodation.

Complete a Departmental Property Offer Sheet, as referred to in the Offers of Housing Chapter of the Allocations Manual. After checking the applicant’s eligibility, household size and special housing requirements and confirming their preferences, advise the applicant of the address of the property.

Inform the applicant that the property is a leased property, and advise the applicant that they retain the same tenure rights as applicants offered DoH owned stock, and that they may be required to relocate if the lease with the private owner is not renewed or extended. Arrange an interpreter if required.

Inform the applicant that the costs associated with relocation will be covered by the Department in accordance with the Relocation Policy from the Relocation Manual.

Check the lease agreement signed between the DoH and the landlord/agent, and advise the applicant of the lease expiry date. Inform the applicant that the Department will negotiate to extend the lease prior to its expiration.

Advise the applicant that refusal on the grounds that the property is a leased property is counted as a refusal of a valid offer of accommodation.

Properties with a separately metered water utilityStaff who are unsure if the property has bulk or separately metered water facilities should refer to the Service Charge Details page of the tenancy agreement.

A separately metered property is indicated by a $0 (zero) charge in the “water service charge” line in the breakdown of total service charges listed on this page.

Staff may refer to the service charges clause in the RTA (s.52) and the Using water in public housing Information Leaflet to help explain tenant’s obligations.

Water usage prior to tenanting leased propertiesWhere a water usage cost is incurred while a property is vacant, the Department pays for the cost of that water charge.

Upon receipt of an invoice from the water authority, determine whether the usage charges apply to the period the property was vacant. Once confirmed, arrange payment of the outstanding amount.

If there is a discrepancy in the dates, contact the water authority to confirm it has the current tenant’s details, and request a revised account detailing costs for when the property was vacant.

Tenancy sign upReconfirm the applicant’s eligibility prior to signing the Tenancy Agreement.

Request the applicant to sign the Leased Property Acknowledge Form on page 28, acknowledging that they will be residing in a leased property, and that they may be issued a 120 Day Notice to Vacate in accordance with the RTA to facilitate their relocation at a future date.

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Advise the applicant that the Leased Property Acknowledge Form on page 28 is not a legal document, and that it is signed with them to ensure they understand the conditions attached to an offer of leased accommodation. Arrange an interpreter if required.

Proceed with the sign up in accordance with existing Allocations Policy and Procedure from the Allocations Manual.

Tenancy ManagementDepartmental staff are to apply existing Policy and Procedures and operational guidelines in the day-to-day management of tenants residing in leased properties. Apply the information detailed in the following documents without limitation:

• Rental Rebate Policy and Procedure manual• Business Practice manual• Relocation Policy and Procedures manual• Tenancy Management manual, excluding Sleep-outs chapter.

Dispute Management/ ResolutionComplaints from Landlord/Agent about a Departmental tenantIf a complaint is received from the landlord/agent about a tenant residing in a leased property, advise the complainant to contact the LMO directly to report the complaint as referred to in the Tenancy Management Manual.

Record the contact with the landlord/agent in HiiP file note in the Enter Account Actions screen.

Where a complaint is received by the LMO from the landlord/agent about a tenant living in a leased property, the complaint is referred to the local Office in an email from the LMO for follow up by the TM. The Team leader may refer the complaint to an HSO for follow up if appropriate.

Investigate the complaint in accordance with Departmental practices, and take appropriate action to remedy the situation.

Disputes between the Landlord/AgentIf a landlord/agent contacts the local Office with concerns about the lease agreement with the DoH, or any other contractual matter, advise them to contact the LMO directly on telephone 9096 8414.

Dispute between the Department and tenant, or between tenantsDisputes between tenants, reports of inappropriate behaviour, and illegal activity in leased properties are managed by the local Office in the same way as these types of situations are managed in DoH owned stock as referred to in the Public Housing tenant information: Tenancy Breaches in this manual (Staff to refer to Tenancy breaches operational guidelines).

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MaintenanceUrgent maintenance requestsIdentify whether the works required are potentially capital works, such as replacement of hot water service, or minor and responsive in nature.

If the works are minor and responsive in nature, raise a SC Order to the Head Contractor to undertake the required repairs.

If the works appear to be capital in nature, and the tenant reports the fault on a Friday or a day prior to a public holiday, raise a SC Order to the Head Contractor to undertake the required repairs.

If the works appear to be capital in nature and the tenant has reported the fault during normal business hours Monday to Thursday, raise an urgent Inspect and Report SC Order to the Head Contractor. Contact the tenant and advise the tenant that the matter has been referred to the owner as it is their responsibility, and that the problem will be rectified as soon as possible. Request the tenant to re-contact the local Office if the fault is not repaired within 12 hours.

Emergency after hours maintenanceTenants of leased properties may contact the Emergency after Hours Maintenance Service to request urgent works. The LMO will seek to recover the costs of the works from the landlord if they determine that the works are the landlord’s responsibility.

Raise an SC Order immediately for urgent works listed on the log sheets for which job numbers were allocated by the Emergency After Hours Maintenance Service, as outlined in the Maintenance Manual.

Email details of the works including property details and SC Order number to the LMO, requesting that they recover the cost from the landlord.

If the Landlord/Agent does not undertake the repairsIf the tenant re-contacts the local Office, telephone the LMO on 9616 8414 to advise that the fault has not been repaired by the landlord/agent, and request authorisation to direct the Head Contractor to carry out the repairs.

Once authorised, raise an urgent SC Order to the Head Contractor for the required works, give the details of the SC Order to the LMO so they can recover the cost of repairs from the landlord/agent.

Repairs to non-standard itemsIf a tenant reports that repairs are required to non-standard fittings and fixtures, for example repairs to an air-conditioner, advise the tenant that the works will be referred to the landlord/agent to undertake the repairs.

Record details of the tenant contact as a file note in Unit History. The LMO will advise the landlord/agent of the required repairs.

Non-urgent maintenance - Capital WorksIf a tenant reports that repairs are required and the works appear to be such that they are required to extend the life of the property, for example internal or external painting, re-blocking or replacement of rotting window sills, advise the tenant that the works will be referred to the landlord/agent.

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Create a file-note in Unit History to record that the matter has been referred to the landlord/agent for rectification.

If the works reported appear to be minor in nature, consider whether they can be deferred until the end of the DoH lease agreement. Contact the tenant by phone or send a letter advising that the works will be referred to the landlord/agent as non-urgent maintenance, and create a file-note in Unit History to record that the matter has been referred to the landlord/agent for rectification.

Tenant Responsibility MaintenanceLandlord/Agent identified tenant responsibility worksThe LMO will advise the local Office when a landlord/agent contacts to request that tenant responsibility works identified by them be attended to. This advice will be in the form of an email from the LMO.

Contact the tenant and advise them that a complaint has been received from the landlord/agent, and arrange a time to inspect the property. If the tenant does not consent to an inspection, advise them that they will be served with a Notice to Inspect the premises. Send the Notice via Registered Post pursuant to RTA (s 86(1)(e)).

Inspect the property for damage as reported to the LMO by the landlord/agent. Refer to the Tenancy Condition Report on file to determine the pre-tenancy condition of the premises. If the damage is tenant related, inform the tenant that they will be charged for the cost of repairs, and arrange the works.

If it cannot be determined that the damage was the fault of the tenant, advise the tenant that the repairs will be undertaken at the Department’s expense.

Advise the LMO the outcome of the investigation and action taken. Create a file note in Unit History of the LMO contact and investigation outcome within seven days.

Department identified tenant responsibility worksIf a tenant requests repairs, and it is determined that the damage is tenant related, inform the tenant that they will be charged for the cost of repairs, and arrange the works.

Maintenance between tenanciesWhen a tenant vacates, arrange standard maintenance works to bring the property up to a tenantable standard.

The extent of required works should be determined with reference to the Property Condition Report signed on behalf of the DoH when the property was leased from the landlord/agent, and the pre-tenancy Tenancy Condition Report. Only arrange works that bring the property to the pre-tenancy standard.

Property has been substantially damagedIf it is discovered between tenancies that the property has been substantially damaged by the previous tenant, identify damages attributable to that tenant.

Apply a MCAT and arrange for the Head Contractor to undertake the works that specifically relate to tenant damage. Also arrange other repairs as required to bring the property back to pre-tenancy condition.

If there has been substantial damage, email the LMO with a report from the FSO/Head Contractor indicating the extent of the damage and works required to rectify.

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Landlord/ Agent Access to leased propertiesFacilitating an access request from Landlord/AgentSpecial lease conditions allow for landlord/agent inspections of leased properties to be facilitated by Housing Office staff.

When the LMO advises that the landlord/agent wishes to inspect their property, confirm that the appropriate written notification has been issue by the Landlord in accordance with the RTA and contact the tenant immediately. Explain that the landlord/agent has the right to inspect their property under the RTA, and negotiate an appropriate time for the inspection to proceed.

Where the tenant refuses to co-operate, contact the LMO and advise that the tenant is refusing access. Send a Notice in accordance with the RTA (s 86 (1)(e)), to inspect the property. Advise the LMO of the inspection time detailed in the notice, and request that the LMO arrange for the agent/landlord to attend at that time.

Contact the LMO on telephone 9096 8414 to request that they arrange with the landlord/agent for the inspection to proceed at the tenant’s preferred time.

Upon advice of confirmation of the inspection time, contact the tenant and advise that a HSO will attend the property with the agent/landlord, and that the tenant need not actively participate in the inspection if they choose not to.

Attend the property at the nominated time, and conduct the inspection with the landlord/agent. Request the landlord/agent to contact the LMO directly if they have any concerns regarding the condition of the property.

Lease renewalLease extension successfully negotiatedUpon the successful negotiation of lease renewal, the LMO will email the TM and HSM to advice of the new lease expiry date.

Send a letter to the tenant advising that the lease has been extended, informing them of the revised lease expiry date. Place a copy of the letter on the tenancy file and the property file.

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Tenancy or lease terminationDepartment initiated termination – Lease due to expire

Lease extension unsuccessfully negotiatedUpon receipt of email notification from the LMO that a lease cannot or will unlikely be renewed and is due to expire, contact the tenant immediately to arrange an interview to discuss possible relocation options.

During the interview:

• request the tenant lodge a transfer application if they have not already done so• advise them that they may receive a 120 Day Notice Covering Letter on page 30 and notice to vacate

by Registered Post as a formal part of the relocation process.Following the interview use the “Making a decision under this policy” guide in order to make a Charter compliant decision about the tenancy.

Discuss the requirement to relocate the tenant with the Team leader, and if relocation has been decided as an option determine whether an appropriate property is available from current stock, or whether a replacement leased property may be appropriate.

If a decision is taken to end the tenancy and relocate, make an offer of accommodation immediately when a suitable property becomes available, and advise the tenant the Department will arrange removal and pay relocation expenses.

Arrange a removalist and assist the tenant as requested. Request the tenant to forward invoices for relocation expenses to the local Office for payment as per Department Relocation Policy in the Relocation Manual.

If at the expiration of the 120 Day Notice Covering Letter on page 30 the tenant remains in possession of the premises and there is little likelihood that they will consent to relocation, contact the LMO on Telephone 9096 8414 and request that they again negotiate with the landlord/agent for additional lease time.

Where additional lease time cannot be negotiated, connect to VCAT Online via HiiP and make application to VCAT for an Order for Possession. Ensure the relevant notice number from the original 120 Day Notice Covering Letter on page 30 is included with the application.

If all avenues of relocation have been explored with the tenant and the tenant refuses to relocate to a suitable, alternative property, prepare a Briefing Note from the Housing Manager to the Director, Service Implementation and Support for authorisation to obtain a Warrant of Possession.

Once the property has been vacated, issue a SC Order to the Head Contractor for the property to be cleaned, the garden tidied, and all rubbish and tenant possessions removed in accordance with the Abandoned Properties and Goods Policy in the Tenancy Management Manual.

Advise the LMO once the maintenance works are completed, and forward the keys and the property file to the LMO within 2 working days.

Tenant initiated termination – Lease still currentIf the tenant vacates a lease property before the lease between the DoH and the landlord/agent has expired, refer to the copy of the lease agreement on file and arrange for maintenance works to bring the property to the pre-tenancy standard.

Locate a suitable applicant from the waiting list and offer the property.

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Lease has less than six months to runIf the property has less than six months to run on the current lease, re-offer the property to the next suitable applicant on the waiting list.

Advise the applicant at the time of offer that the property is a leased property with less than six months remaining on the lease, and that the offer will not be counted as a valid offer if refused. If the offer is refused, re-offer the property to the next suitable applicant on the waiting list.

If the offer becomes hard to let in that it has been repeatedly refused by applicants, refer the property in HiiP to the asset manager using the referral reason – ‘Refer property back to Lease Team” with recommendation “return property back to Leased Management and select action “ RLM raised ”. Ensure that a note is added in HiiP to indicate that the leased property is near expiration date and cannot be allocated. Following this the HM/Tenancy and Property Manager or equivalents must select action ‘RLM endorsed’. This then requires Portfolio to be responsible to approve and apply the reletting restriction.

Contact the HM/Tenancy and Property Manager or equivalents to determine if there is an alternative use for the property. If the Region cannot utilise the property, contact the LMO on 9096 8414 to determine whether the property can be returned to the agent/landlord early, the lease can be renewed, or whether another program can utilise the property for the remainder of the lease.

Early lease cessationIf the LMO advises that an Order has been granted at VCAT for the early cessation of a lease entered into by the DoH, the local Office may have to relocate the tenant on an urgent basis.

Where advice is received that a lease is to end early, contact the LMO on 03-9096 8414 immediately to discuss VCAT’s Order, and the notice that the local Office will be required to serve the tenant.

Immediately contact the tenant to discuss the VCAT Order. Advise the tenant that the Department will assist as much as possible to relocate them as quickly as possible, and inform them of the timeframes.

Contact the HM/Tenancy and Property Manager or equivalents to advise of the circumstances, and seek assistance of other Housing Offices in the region to co-ordinate an urgent relocation within the region, or if required, to another region.

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Appendix 1

Leased Property Acknowledgement Form

Lease Property Acknowledgment

Reference Number: «ServiceID»

I/We, <Tenant/s name>

Understand that the property at

<Departmental property address>

is leased by the

<Department Director entity>

from a private landlord/real estate agent.

I/We understand that as tenants residing in a non -

<Department Director entity>

owned property that I/we retain all the rights and obligations of other

<Department Director entity>

tenants as well as those given to us under the Residential Tenancies Act 1997.

I/We understand that, the head-lease (the lease between the

<Department Director entity>

and the real estate agent/landlord) for

<Departmental property address>

is a fixed term lease which is due to expire on

<Lease expiry date>

and that I/we may be served with a 120 - Day Notice to Vacate in the event that the

<Department Director entity>

is unable to renegotiate a new lease for the property with the real estate agent/landlord.

Tenancy management manual Chapter 4: Leased properties November 2017 Page 29

In the event that this does occur, I/We:

• understand that we will be required to move from this property;• understand that the

<Department Director entity>

• will attempt to re-house the household in similar accommodation, where possible;• Understand that the relocation will be subject to the

<Department Director entity>

• relocation policy current at that time, and that the local office will pay for relocation costs according to the

<Department Director entity>

• relocation policy.

Signature: Date:

4.1.1

Page 30 Tenancy management manual Chapter 4: Leased properties November 2017

Appendix 2120 Day Notice Covering Letter

<>

<Enter name HERE>

<Enter address HERE>

<>

Dear ENTER NAME

Please be advised that the fix term head lease for the property at <enter address> is due to cease on <enter date>.[ As the owner is not seeking to renew the lease, the Director of Housing is unable to continue a tenancy at the premises with you. OR In light of the condition of the property, the Director is not prepared to seek an extension of a lease with the owner. Therefore we are serving you a notice to vacate as one of the steps to formally terminate our tenancy with you.

Please find attached a 120 Day Notice to Vacate, outlining the details of the lease cessation.

Please note that you are eligible to be transferred to alternative accommodation in accordance with the Director’s policy. Please contact < name,> Housing Services Office at <office location > on <office telephone number> to arrange an interview to discuss your housing options.

At the interview you will be required to complete an Application for Rental Housing and a Housing Services Officers will discuss your circumstances and determine the appropriate housing size, your preferred locations and any special accommodation requirement specific to your relocation.

The Department will make every effort to relocate you to an appropriate housing according to your requests and the availability of the requested housing. The Department will also pay for the costs associated with moving to another property including electricity and has connection fees, telephone connection fees, mail redirections and removal costs.

Please do not ignore this letter. Your prompt attention to this matter is appreciated.

Yours sincerely

<Insert name>

Housing Services Officer

<Insert Housing Office location>

Tenancy management manual Chapter 4: Leased properties November 2017 Page 31