When the Prime Minister announced that National Cabinet had passed the responsibility of supporting residential tenants and landlords through the Coronavirus pandemic, to the different states and territories, each has provided their own guidelines covering the issues of evictions, negotiations and rent relief.

WILLIAMS MEDIA summarises where the states are at in the process of supporting tenants and landlords.

New South Wales

NSW announced a package of $440 million to support their many tenants and landlords.

Support and recommendations provided includes:

• Residential landlords and tenants required to negotiate rental payments where a household has lost at least 25 percent of its income because of the Coronavirus.
• Eligible tenants in NSW protected from eviction until the National Civil and Administrative Tribunal is satisfied negotiations have concluded, with any unpaid rent to accrue as arrears in that time.
• Landlords eligible for a land tax waiver or rebate up to 25 per cent would then pass it on to tenants who are in financial distress.

Doug Driscoll, founder of Starr Partners whose business includes a rental roll of around 13,000 properties and 11,000 landlords, says communication is key.

"We currently have around 10 per cent of tenants who are in a position where they can not pay their rents and we will need to negotiate with the landlords for them," said Mr Driscoll.

"I see it like a hostage situation where, despite there being very experienced law enforcement officers around, they still bring in a negotiator to bring the situation to a good conclusion for all parties involved."

Navigating rental arrangements under a pandemic

The NSW Real Estate Institute has responded to their Government's package saying while it welcomed the support.

"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," said REINSW president Leanne Pilkington.

More details for tenants and landlords from the NSW Government

Victoria

The Victorian Government has come out with a $500 million package to support renters and landlords.

Details of the package include:

• introducing a temporary ban on evictions
• pausing rental increases for six months
• providing land tax relief for landlords
• rent relief for tenants experiencing financial hardship 

Tenants and landlords who struggle to strike a deal over rent reductions will be given access to a fast-tracked dispute resolution service, with Consumer Affairs Victoria

$500 million property relief package for Victorian tenants

"More than ever, we need to be working in partnership," said Victorian premier Daniel Andrews.

"Landlords working with tenants, tenants working with landlords and Government willing to help those most in need.”

More details from the Victorian Government

Queensland

The REIQ has come out saying the Queensland Government's proposed package needs to be fairer and more equitable, not going far enough to protect property owners.

They have forwarded a template to estate agent members to write to the premier Annastacia Palaszczuk where they would like to see the following changes:

• Introduce rent deferrals rather than permanent rent waiver rights for tenants. 
• Introduce a minimum income reduction threshold for tenants to meet before they qualify for the protection measures. 
• Introduce a standard requirement for tenants to substantiate a rent reduction request to allow landlords to make properly informed and fair decisions about rent reductions;
• Introduce clear guidelines on property entry requirements, and broaden the range of activities allowed to continue, subject to applicable safety and hygiene protocols;
• Remove the proposed break lease right that allows tenants to simply walk away from tenancy agreements with only 1 weeks’ notice 
• Remove the proposed automatic right to a 6-month tenancy agreement extension which in effect introduces a 12-month moratorium in Queensland

“The proposed measures in their current form will seriously harm over 600,000 property owners who provide the vast majority of rental housing supply to 35 per cent of Queensland’s population who rent," said Antonia Mercorella, CEO REIQ.

reiq_letter_to_premier.jpg

Template of letter REIQ is sending out to members to send to the Queensland premier. Source: REIQ

REIQ launch 'Everyone Matters' campaign

More details from Queensland Government on applying for rent relief

Western Australia

The REIWA welcomed the Western Australian Government's clarification on residential tenancies but advised that rental assistance is still needed.

Highlights of the WA support:

• Rent is still payable by all tenants and the tenants will have to pay back their rent once they are financially stable again
• Free fast-tracked dispute resolution system will be provided by Consumer Protection
• REIWA disagrees with allowing all leases to be broken and a blanket ban on all evictions

"While we support a prohibition on the eviction of tenants affected by COVID-19, a blanket ban on all evictions except in very limited circumstances is a step too far,” REIWA president Damian Collins.  

“The decision to allow all leases to be broken, regardless of whether or not the tenant has been impacted by COVID-19 is also an unnecessary addition.” 

Rent assistance still required says REIWA

Keep up-to-date with WA Government coronavirus information

Tasmania

While the Tasmanian Government has given tenants the ability to stop paying rent for potentially the next six months without the fear of being evicted from the property, this doesn't mean it is a rent holiday, according to the REIT.

"This is not a rent holiday, it will become due in the near future," said REIT CEO Mark Berry.

Tenants have an obligation to pay rent

More details from the Tasmanian Government on rental relief

ACT

No regulations around the ACT eviction moratorium have been released by the territory government as yet.

REIACT CEO Michelle Tynan said the industry body is currently working with the regulators.

More details on housing from the ACT Government

South Australia

REISA has advised that the bill for rental relief has passed in both state houses but regulations are yet to be implemented.

Keep up-to-date with SA Government information into rental relief

Northern Territory

The NT Government is due to release it’s residential support package by next week and plans to resume Parliament in a week's time to allow for the passage of legislation. 

Quentin Kilian, CEO of REINT said the industry has been engaged in very constructive conversations with the Chief Minister, Treasurer and Attorney-General’s Department over what a bespoke package for the NT should look like. 

"The Territory is in a very different position to our southern neighbours and as such, it is important that any package, including potential non-eviction periods, is tailored to suit NT conditions and needs," said Mr Kilian.

"We are looking forward to an announcement from the Government in coming days."

Keep up-to-date with NT Government coronavirus information

Ray White Group Managing Director Dan White said clarification around evictions in every state was critically important. 

“I think everyone agrees that unless a landlord or tenant can prove their financial hardship is directly related to the COVID-19 pandemic, the pre-existing rules should still apply," said Mr White.

"We need a clear and efficient process for both tenant and landlord to prove hardship from COVID-19 and therefore receive the safeguards the government has proposed, and as an industry we think we can play a role in helping all parties achieve this."

John McGrath, founder of McGrath Estate Agents said the six month moratorium on evictions has given renters security and comfort. 

"This is an important protection, however as the Prime Minister said, there is a moratorium on evictions. That doesn’t mean there is a moratorium on rents," said Mr McGrath.

"Many residential landlords are facing the same threat of job losses or reduced wages as a result of Covid-19.  Most landlords are ordinary earners with just one investment property."

John McGrath – The rental market and Covid-19

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