Easter Sunday was the day the NSW State Government chose to release information regarding a lifeline for tenants and landlords via a $440 million package.

For residential tenants and landlords it would mean rent relief could be provided through a land tax waiver or rebate.

Landlords eligible for this waiver or rebate up to 25 per cent would then pass it on to tenants who are in financial distress.

At a Glance:

• Landlords eligible for a waiver up to 25 per cent to then pass on to tenants in financial distress
• Tenants obliged to pay rent, and there is no automatic waiver in relation to obligation to pay any discounted rent later
• NSW Government will be recalled to pass these measures
• About 16 per cent of landlords pay land tax, so 84 per cent of landlords will be getting no assistance

REINSW president, Leanne Pilkington said they were pleased the Government had taken on board a number of their concerns in relation to rent relief.

"They have clarified that tenants are obliged to pay rent, and there is no automatic waiver in relation to obligation to pay any discounted rent later," said Ms Pilkington.

Tenants have an obligation to pay rent.

"It makes sense that the Government is providing land tax relief, but the reality is only about 16 per cent of landlords pay land tax, so 84 per cent of landlords will be getting no assistance.

"Property managers at least now have clarity on what they can do, and the information that they can request to justify the rent discounts, but they need to negotiate directly between landlords and tenants, and it will be interesting to see the response to that over the next few days.  

"Fair Trading have offered mediation assistance, so that will be helpful, but I do wonder how many will have to take them up on that, and what that will then do to time-frames etc."

Ms Pilkington said agents are relieved that there is clarity, that tenants will be required to justify their claims, and that the rent is not able to be waived without landlord agreement. 

"A number of landlords have already successfully negotiated with their tenants, which is great," said Ms Pilkington.

"There are however some landlords who are also in hardship who are not really in a position to help, so that is going to get difficult."

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