Head lease arrangements are defined by a contractual agreement between Homes Tasmania and organisations. Under the agreement, we will lease a property to you for an approved purpose at an agreed rent.
The agreement outlines the responsibilities and obligations we both have in managing the property.
Head lease arrangements include:
- Residential head lease agreements
- Non-residential head lease agreements
- Non-residential licence agreements
- Sub-lease agreements
- Key worker accommodation.
Head lease policy
Homes Tasmania is developing a head lease policy and a rent setting model for organisations who head lease properties owned by Homes Tasmania.
This policy and the associated procedure will provide clarity for organisations about how rents will be set under head lease arrangements in a manner that is sustainable and supports a viable service system.
Annual rent adjustments
From 1 April 2025, Homes Tasmania will apply a 3.5 per cent rent increase to eligible head lease arrangements, in accordance with Clause 5 of the Head Lease. This adjustment aligns with market conditions and supports sustainable property management and maintenance.
This rent increase will be implemented on the commencement anniversary of your lease.
We will contact you prior to the adjustment to discuss the changes and we will provide you with written confirmation detailing the new rent amount and effective date.
The rent increase applies to head lease arrangements where rent is set based on:
- income-based calculations
- market rent calculations
- a negotiated discretionary amount.
Where rent is set on income-based calculations, the increase will be capped at the lesser amount of:
- income-based calculation as at adjustment date
- 3.5 per cent of the current rent.
Your new rent amount will not exceed the current market rent value of the property.
The Head Lease policy currently under development will include a model for future rent setting and annual adjustments.
More information
If you have any questions about the rent adjustments, please contact your contract manager or Homes Tasmania at commissioning@homes.tas.gov.au for further details.