Changing a tenancy policy

The intent of this policy is to explain the criteria for changing a Homes NSW managed tenancy.

1. Background

Homes NSW tenancies may change for a number of reasons, including:

The intent of this policy is to explain the criteria for changing a Homes NSW managed tenancy for each of the reasons above. The Tenancy policy supplement provides further information to support this document.

2. Scope

This policy applies to all tenancies managed by Homes NSW, including Aboriginal Housing Office (AHO) tenancies.

This policy does not apply to tenant initiated requests to transfer to another property for example due to:

  • needing a larger or smaller property
  • needing a property with different characteristics
  • breakdown of the household or family.

Information about tenant initiated requests for transfer is in the Transfer policy.

3. Policy statement

Homes NSW will change tenancies in accordance with:

Both the tenant and Homes NSW have rights and obligations under the above Acts, the residential tenancy agreement and the relevant Homes NSW policies.

Relocating tenants for management purposes

Homes NSW has the right to ask any tenant to relocate to another suitable property that:

  • meets the tenant's known housing and locational needs, and
  • allows continued access to services, and
  • supports a sustainable tenancy.

 This includes a tenant who:

  • is seeking a mutual exchange, and/or
  • is approved for a tenant-initiated transfer, and/or
  • is under-occupying a property, and/or
  • is paying a Vacant Bedroom Charge, and/or
  • has had their rent subsidy cancelled or who is no longer eligible for a rent subsidy and is subsequently paying, or is required to pay, full market rent, and/or
  • has a household income over the social housing income eligibility limit. For more information, go to Income eligibility limits.

Homes NSW will only require a tenant to relocate for valid reasons related to the management of a tenancy or the property portfolio, including where:

  • Homes NSW has determined that there are serious neighbourhood disputes or ongoing antisocial behaviour in any one or more housing properties or a housing estate
  • any one or more public housing properties or a housing estate is to be developed for any reason
  • the property has been or will be sold
  • Homes NSW is required to return a head lease property and a Notice of Termination has been issued by the owner of that property
  • the premises is under-occupied
  • people are inappropriately housed in a complex which Homes NSW wishes to designate as an older person’s complex
  • people are inappropriately housed in a property with modifications
  • the property is found to have significant damage or maintenance liability including termite damage or friable asbestos; and
  • there is another situation or situations which require a premises be made available for any operational purpose or need whatsoever.

For more information, go to Relocations for portfolio management purposes and Relocations for tenancy management purposes.

If necessary, Homes NSW will enforce its right to relocate a tenant to another suitable location by taking termination action through the NSW Civil and Administrative Tribunal (NCAT).

Aboriginal Housing Office tenants subject to relocation

Homes NSW, as managing agent for the AHO, will consult with the relevant Relationship Manager of the AHO to ensure that affiliation with family and land is supported for AHO tenants being relocated for the following reasons:

  • redevelopment/sale of property
  • under-occupancy
  • anti-social behaviour.

Relocation from a Homes NSW managed complex that is designated as a Senior Communities complex

When Homes NSW ‘the owner’ designates a complex as a Senior Communities complex, tenants who are 54 years and younger (44 years if Aboriginal and/or Torres Strait Islander) can relocate to appropriate alternative accommodation within the first 6 months of the complex being designated as Senior Communities. For more information, go to Relocation of younger tenants from Senior Communities properties.

Large-scale relocations of whole communities managed by Homes NSW

Sometimes Homes NSW, on behalf of the owner will undertake large-scale relocations of whole communities, or public housing areas. In this situation, Homes NSW may appoint a project team to manage the relocation process.

When undertaking a larger scale relocations project, Homes NSW may decide to set up a community reference group or hold community forums to provide information. Homes NSW will make a decision to set up a group or forum after considering relevant factors such as the scale or complexity of the relocation process, the appropriateness of other available communication or feedback options and the level of interest from members of the community affected by the relocation.

Relocation from a property that is being redeveloped

In a situation where Homes NSW relocates a tenant from a property that will be redeveloped to provide social housing, the tenant can express their interest in returning to live at the site after the redevelopment is complete. This would mean relocating the tenant while the redevelopment project is undertaken and then a second relocation to return them to the site when it is complete.

Homes NSW will consider requests from tenants to return after the property redevelopment is complete on a case-by-case basis. Homes NSW will consider the tenant's housing needs when making its decision. For more information, go to Eligible to request to return to a property after redevelopment and Approval to return to a property after redevelopment.

What areas can Homes NSW relocate a tenant to?

Relocating tenants can nominate the area they would like to move to. Homes NSW will approve this area unless there are compelling policy or operational reasons to decline the tenant's nomination. For more information, go to Restriction and approval of rehousing location.

How will a tenant be relocated?

When Homes NSW relocates a tenant it will:

  • tell the tenant about the relocation
  • interview the tenant to find out their housing and relocation needs
  • give the tenant an individual relocation statement outlining their relocation entitlements
  • confirm that information about the tenant's housing needs is up to date
  • offer alternative housing to the tenant. Most tenants will receive two reasonable offers of alternative accommodation; however, in some circumstances a tenant may only receive one offer. For more information, go to Relocation offers
  • make final arrangements for the tenant to sign a new tenancy agreement when they accept an offer of alternative housing
  • issue a Notice of Intention to Issue a Notice of Termination at the same time the final offer is made
  • if the tenant rejects all reasonable offers of alternative housing and, where necessary, issue a Notice of Termination and apply for termination of the tenancy at the NCAT.

For more information, go to The relocation process.

Help with the relocation process

Homes NSW will provide practical support for a relocating public housing tenant and their household where it is appropriate and necessary to help them relocate.

Homes NSW will assess each tenant's situation on a case-by-case basis and make a decision based on the individual circumstances of the tenant. Homes NSW aims to help the tenant establish a tenancy in the new location that is likely to be successful and sustainable. Where a tenant has made approved alterations to their current property, Homes NSW will consider transferring this level of amenity to the new property. A tenant can apply for reimbursement for approved alterations, excluding swimming pools, if an alteration cannot be removed and the tenant is relocated for management purposes to a property which does not have comparable alterations or amenities. If a Homes NSW tenant is relocating to a property managed by a community housing provider, any transfer of amenity to the new property will be negotiated with the community housing provider on an individual case-by-case basis. For more information, go to Assistance with the relocation process.

Homes NSW will also work with the tenant to identify any support services they may require in the new area, make referrals to the appropriate agencies and encourage the tenant to follow up on referrals.

Number of offers for a tenant relocating for management purposes

Tenants who are being relocated for management purposes will, in most cases, receive up to two offers of housing.

In exceptional circumstances, Homes NSW may decide to make one offer of alternative housing to tenants who are being relocated for management purposes.

All final offers made by Homes NSW to tenants being relocated for management purposes will be made under Section 149 of the Residential Tenancies Act 2010. Homes NSW will issue a Notice of Intention to Issue a Notice of Termination to the tenant at the same time the final offer is made.

For more information see Tenancy Policy Supplement - 7. Relocation offers.

Rejection of reasonable offers for relocation

If a Homes NSW tenant rejects all reasonable offers of alternative social housing, Homes NSW will undertake a final check to confirm that the offer(s) made to the tenant took into account all of their known housing needs and were consistent with the entitlements set out in the tenant's individual relocation statement. For more information on reasonable offers, go to the Matching and Offering a Property to a Client policy.

If a Homes NSW tenant is under-occupying their property and rejects a first reasonable offer of alternative social housing, Homes NSW will undertake a final check to confirm that the  took into account all of the tenant’s known housing needs.

Final offers of alternative social housing will be made under Section 149 of the Residential Tenancies Act 2010 and a Notice of Intention to Issue a Notice of Termination will be given to the tenant at the same time the final offer is made.

Homes NSW has the legal right to terminate a tenancy on the grounds that it has made an offer of alternative social housing. This legal right is set out in Section 148 of the Residential Tenancies Act 2010.

The processes that Homes NSW is legally required to follow when relying on Section 148 to terminate a tenancy, including the review processes, are set out in Sections 149 and 150 of the Residential Tenancies Act 2010 and in the Procedures Approved by the Minister for Reviews under Section 149 of the Residential Tenancies Act 2010.

Reviewing an approved relocation for management purposes

To ensure that a relocation continues to reflect the tenant's current housing situation, Homes NSW will coordinate a review of relocations for management purposes:

  • every 6 months, or
  • when new information from either the tenant or Homes NSW prompts a review.

Following a review, Homes NSW may change the priority of a relocation for management purposes to take account of any differences in the level of urgency of the tenant's circumstances.

Homes NSW will assess the degree of urgency when a tenant must be urgently relocated for management purposes.

Type and length of lease

Where Homes NSW relocates a tenant to a property managed by a community housing provider and also approves that tenant to return to public housing as part of the same relocation process, Homes NSW will offer them the same type of lease as their previous public housing lease.

Where Homes NSW relocates a tenant to an alternative property managed by a different housing provider, the tenant will be offered a type and length of lease in accordance with the individual provider's policy.

Homes NSW offers leases of different types and lengths after a change of tenancy, depending on a tenant's circumstances. For more information, go to Changing a tenancy – Type and length of lease offered in the Tenancy policy supplement.

Paying rent after relocation

Tenants of Homes NSW who are relocated to another property managed by Homes NSW will be charged rent as follows:

  • If they receive a rent subsidy, Homes NSW will calculate the rent for the new property in the same way as for the current property. This may result in a change to the amount of rent paid if there have been recent changes to the household income or number of people in the household. For more information, see the Charging Rent policy.
  • If they pay market rent, Homes NSW will ask the tenant to pay market rent for the new property. In the case where the market rent for the new property is higher than the market rent currently paid by the tenant, and the tenant is not eligible for a rent subsidy, Homes NSW will consider limiting the additional rent the tenant is expected to pay.

Where Homes NSW relocates a tenant to an alternative property managed by a different housing provider, the tenant's rent will be assessed in accordance with the policy of the individual provider.

All community housing providers calculate rent in accordance with the Community Housing Rent policy.

Paying a rental bond after relocation

Homes NSW tenants who relocate to another Homes NSW managed property may be required to pay a bond in accordance with the Rental Bonds policy.

A Homes NSW rental bond will not be transferred from an existing tenancy to a new tenancy. Homes NSW will claim the bond for any outstanding charges, and any remaining bond credit on the former tenancy after the claim process has been finalised will be refunded by NSW Fair Trading to the tenant. A new bond will then be applied to the new tenancy, if applicable.

Tenant initiated transfer on the grounds of under-occupancy

Under-occupying a property is when a tenant has more bedrooms than they are entitled to for their household size. Tenants can apply for a transfer to a smaller property. Go to Tenant transfers for more information.

When a tenant requests a transfer due to under-occupancy and rejects their final reasonable offer of alternative social housing, a Vacant Bedroom Charge will be applied to their tenancy. Go to Vacant bedroom charge for more information.

If at any time, a property is required for tenancy or portfolio management purposes, a tenant may be relocated including a tenant who has been approved for a transfer on under-occupancy grounds or who is paying a Vacant Bedroom Charge. Go to Relocating tenants for management purposes for more information.

The following criteria only apply to tenancies managed by Homes NSW. It does not apply to tenancies managed by community housing providers. Community housing providers will manage applications for mutual exchange in accordance with their own policies.

What is a mutual exchange?

A mutual exchange allows two public housing tenants to swap homes. This option is available to tenants living in public housing properties managed by Homes NSW, which includes some properties and tenancies managed on behalf of the Aboriginal Housing Office (AHO). It helps tenants move to a preferred location or find a home that better suits their needs.

Mutual exchanges are only permitted between tenancies managed by Homes NSW, including those managed for the AHO. This means that a public housing tenant:

  • can mutually exchange with another public housing tenant
  • cannot mutually exchange with a tenant of a community housing provider.

Finding a property to exchange

Homes NSW provides a computer matching service to help public housing find and contact other public housing living in homes that are suitable to mutually exchange.

An exchange may involve more than two tenants. The time taken to find a match depends on the availability of tenants in the desired location who want to exchange. There is no charge for this service.

When Homes NSW finds a match, it will notify each tenant and send them a letter containing the name, phone number and address of the other tenant. The tenants then make their own arrangements to view each other's homes. Tenants are under no obligation to accept an exchange and can reject an alternative home without penalty.

Additionally, tenants may also advertise or arrange an exchange themselves (although Homes NSW must approve the exchange before it can take place). Tenants cannot offer financial or other incentives to encourage other tenants to exchange. If Homes NSW becomes aware that incentives of any form are involved, it will not approve the exchange.

Assessing a request for a mutual exchange

If the tenants agree to exchange, they must notify their local Homes NSW office. Homes NSW will advise tenants in writing whether it has approved or declined their application for mutual exchange. For more information, go to Criteria for approving a mutual exchange.

Homes NSW must approve a mutual exchange before the tenants move. If they move before approval is given, they may have to return to their previous dwellings. Moving without approval is a breach of the tenancy agreement.

What happens when Homes NSW approves a mutual exchange?

Tenants must sign a new tenancy agreement for the new home. They sign at the same time, preferably in the same office. Tenants are responsible for arranging keys and for paying their own removal costs. If Homes NSW has approved a tenant for a transfer, Homes NSW will remove them from the NSW Housing Register when the mutual exchange is finalised.

Tenants who exchange into a headleased or Public Equity Partnership property cannot buy the property or carry out any modifications or additions.

Tenants approved for a mutual exchange may be required to pay a bond in the new tenancy if tenant damage charges of $500 or more in a single instance is substantiated and applied to the vacating tenancy.

Transition of tenancy

Transition of tenancy is only applicable for Homes NSW managed properties (including AHO properties managed by Homes NSW).

Transition of tenancy is when an authorised household member or other eligible person connected to the household applies to take over the tenancy after one of the following Life Events Affecting a Tenancy has occurred. These events are strictly limited to where a head tenant has:

  • died, or
  • left the property as a result of being imprisoned, or
  • left the property due to health reasons, for example has entered a nursing home or an institutionalised care facility.

Clients are not eligible to apply for Transition of tenancy if:

  • a Life Event Affecting a Tenancy has not occurred, and/or
  • they are not an authorised member of the household.

Timeframe to apply

Household members must inform Homes NSW of the Life Event Affecting Tenancy as soon as possible. If they wish to apply for a 6 month provisional lease and Transition of tenancy, an authorised household member must complete and lodge Parts A and B of the Transition of tenancy application within 10 weeks of the Life Event Affecting a Tenancy occurring.

Household members are not eligible to apply for Transition of tenancy outside of this timeframe. Homes NSW may consider extending these timeframes, if the client demonstrates extenuating circumstances. For example, difficulty ending the previous tenancy despite having made genuine efforts or a medical condition or disability which made it difficult to lodge an application within the timeframe.

If deemed eligible, applicants will be issued a 6 month provisional lease while they are being assessed for Transition of tenancy. If deemed eligible for Transition of tenancy, the applicant will be offered a continuous lease.

Where an applicant is approved for a 6 month provisional lease or Transition of tenancy, a bond may be required if the applicant had tenant damage charges of $500 or more in any former tenancy within the past six years.

If deemed ineligible for a 6 month provisional lease or Transition of tenancy, all household members must leave the property. Homes NSW will seek termination of the tenancy and an order for possession of the property under the Residential Tenancies Act 2010.

Number of applications per household

Homes NSW will only approve one Transition of tenancy application per household. Homes NSW will consider each applicant's eligibility to determine who is approved for a 6 month provisional lease and Transition of tenancy.

In general, a spouse or de facto partner of the tenant who is 55 years of age or older, or a formal or informal carer of children or young persons will be granted a six month provisional lease and Transition of tenancy ahead of other household members.

Situations where Transition of tenancy, including a 6 month provisional lease, does not apply

Transition of tenancy is not available in the following situations:

  • If the tenant leaves due to a breakdown in the household relationship; or an application is submitted to the NSW Civil and Administrative Tribunal under Section 79 of the Residential Tenancies Act 2010 (e.g., following an Apprehended Violence Order). In these cases, Homes NSW will assess the other household member's housing needs under the Family breakdown/separation section of the Transfer policy.
  • If a tenant ends their tenancy by choice, Homes NSW expects all household members to leave the property. Household members may apply for housing assistance through Housing Pathways.
  • Between different housing providers. For example, a public housing tenant cannot be granted Transition of tenancy for a community housing tenancy.
  • If a tenant leaves a joint tenancy, Homes NSW will consider the housing needs of the tenant who left under the Transfer policy.
  • If a tenant is being re-signed to a new tenancy after their tenancy has been terminated by the NSW Civil and Administrative Tribunal.
  • People assessed as ineligible for social housing as high risk registered persons.

Situations where Transition of tenancy will not be approved

Tenancies managed by Homes NSW are exempt from the Recognition of certain persons as tenants provisions under Section 77 of the Residential Tenancies Act 2010.

Homes NSW will not approve a 6 month provisional lease or Transition of tenancy if:

  • the tenancy has not been relinquished by the tenant or the tenant’s legal representative
  • the tenancy has not been approved to be taken over upon receipt of a death certificate, where a tenant has died without a will and the estate is not being managed by the NSW Trustee and Guardian
  • the tenancy has not been formally ended under the Residential Tenancies Act 2010 within a reasonable timeframe, usually 6 weeks
  • while an occupant of any Homes NSW managed property, including an AHO property, the client committed acts of violence, for example, physical attacks or serious verbal threats towards neighbours or Homes NSW staff and/or associates
  • if, while an occupant of any Homes NSW managed property, including an AHO property, the client was involved in illegal activities in that property
  • the client has been convicted of arson or deliberate damage to any Homes NSW managed property, including an AHO property
  • the client is an unsatisfactory or ineligible former tenant.

In these cases, Homes NSW will use its rights under the Residential Tenancies Act 2010 to seek termination of the tenancy and an order for possession of the property.

Common eligibility criteria for recognition as a tenant

All Transition of tenancy applicants must meet the following eligibility criteria:

  • are an Australian citizen or permanent resident, and
  • agree in writing to relocate if the current property does not match their assessed housing requirements, and
  • except for formal and informal carer of children or young persons living in the property, be an approved additional occupant of the household or included on applications for rent subsidies, and
  • have had a satisfactory occupation within the tenancy, or otherwise satisfy Homes NSW that they will be able to sustain a tenancy, and
  • are eligible to remain in social housing.

The information in this section applies to the majority of Transition of tenancy applicants. Transition of tenancy consists of two parts, A and B.

Part A: Provisional lease – all clients

Homes NSW will offer a six month provisional lease to eligible authorised household members who submit an application within the required timeframe provided they meet the criteria for provisional leases set out in the Types and Length of Lease policy.

People who are not authorised additional occupants will be required to move out of the property but may apply for other housing assistance through Housing Pathways.

Part B: Transition of tenancy

Homes NSW will consider the information in Part B of the Transition of tenancy application and determine if the household is eligible for Transition of tenancy. Homes NSW will first assess if the client meets the common eligibility criteria for Transition of tenancy set out above.

Homes NSW will either:

  • approve Transition of tenancy and grant a continuous lease when the provisional lease ends, or
  • decline Transition of tenancy. When this occurs, all household members must leave the property. Homes NSW will seek termination of the tenancy and an order for possession of the property under the Residential Tenancies Act 2010.

Transition of tenancy for Aboriginal and/or Torres Strait Islander clients

The information in this section applies to Aboriginal and /or Torres Strait Islander clients residing in public housing who are eligible for Aboriginal housing, products and services and clients residing in an AHO property.

Homes NSW will consider information in Part B of the Transition of tenancy application and determine if the household is eligible to continue living in an AHO property managed by Homes NSW.

If the client meets the common eligibility criteria set out above, and they are eligible for Aboriginal housing, products and services, Homes NSW will grant Transition of tenancy. For more information about the AHO Eligibility for Services policy, see the Social Housing Eligibility and Allocations policy supplement.

Homes NSW and the AHO may consider applications for a 6 month provisional lease and Transition of tenancy on a case-by-case basis for:

Before declining an application for Transition of tenancy for an Aboriginal and/or Torres Strait Islander person in a Homes NSW property, Homes NSW may seek advice from the AHO.

Where Homes NSW recommends declining Transition of tenancy for an Aboriginal client in an AHO property, the decision must be referred to the AHO for review prior to finalisation.

Transition of tenancy for young people

If the client is a young person aged 16 or 17 years, they may be granted Transition of tenancy if they demonstrate they are able to care for themselves and can meet the terms of the tenancy agreement. For further information see the Eligibility for Social Housing policy.

Accounts of the previous tenant

Homes NSW cannot pass on the debts of the former tenant to the new tenant when there is a change of tenancy and a new tenancy agreement is signed. If a tenant dies, Homes NSW will claim the rental bond (if one exists) for any money they owe, before writing off any remaining debts. If any of their accounts are in credit, Homes NSW will pay the money to their estate. If a tenant leaves the property, Homes NSW will claim the bond (if one exists) for any money they owe, and then treat any remaining debit or credit as a vacated account.

Requirement to move to a different property

When Homes NSW approves Transition of tenancy, it assesses whether the property the person is living in matches their housing needs. If the property does not match the client's housing needs, the client is required to relocate to a suitable property, when one becomes available. If the client does not agree, [TW3]  Homes NSW will enforce its right to relocate the tenant under the Residential Tenancies Act 2010. For more information see Relocating tenants for management purposes[TW4].

Appointed agents

Homes NSW will not approve Transition of tenancy to appointed agents unless they are already authorised household member, or they are the tenant's spouse or de facto partner and the tenant has relinquished the tenancy. For more information on appointing an agent see the During a Tenancy policy

4. Legislation and compliance

Social housing providers change tenancies in accordance with the provisions of the Residential Tenancies Act 2010 and the Housing Act 2001.

If Homes NSW decides to relocate a tenant for management purposes, it still reserves its right at all times to issue a Notice of Termination of a residential tenancy agreement if there have been breaches of the residential tenancy agreement. This provision applies to ensure Homes NSW can comply with its legislative obligations as well as its contractual obligations under the residential tenancy agreement.

5. Related documentation

6. Further information

Appeals and review of decisions

If a client disagrees with a decision a social housing provider has made, they should first discuss their concerns with a staff member from the provider that made the decision. The next step, if they still believe the social housing provider made the wrong decision, is to ask for a formal review of the decision. For information on how reviews work, the client can ask the housing provider for a copy of the fact sheet appeals and reviewing decisions, or read the Appeals policy.

Related links

Type: Policy
Author: Homes NSW
Publication Date: 25 July 2024

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