The Proportionate Reduction in Rent Scheme (the scheme), a component of the Mandatory Code of Conduct for commercial rent relief, is now being pushed by the Tenants Union of Tasmania to be extended and include residential tenancies.

The Scheme through consultation with the Real Estate Institute of Tasmania (REIT), Property Council and other professional organisations has been widely supported in consultation.

The union has started lobbying the government to amend the Residential Tenancy Act to come into line with the scheme, namely making it possible for a tenant to reduce their rent repayments by 30 per cent up until the cessation of the financial hardship period, 30 March 2021. 

The REIT released a statement to confirm they support any measure that is put into place that supports and protects businesses as it is these businesses that employ many tenants and by virtue of that support enables them to pay rent and provide security not only for them but for that of their families. 

"The REIT has supported the COVID-19 Disease (Emergency Provisions) Act 2020 that has already imposed many provisions to assist tenants by preventing evictions, even for the
non-payment of rent and preventing inspections unless mutually agreed," said REIT CEO Mark Berry. 

"However, by further extending legislation that places such a burden on landlords is simply not acceptable and in the true Aussie spirit, simply not fair.

"Landlords have had no option but to receive either no rent or in many cases reduce rent.

"And they have done this with their tenants and in many many cases negotiated in good faith."

Mr Berry cited one Landlord who said: 

“It has not been clearly explained to the public why only landlords must bear the burden of housing costs for citizens who have lost their jobs.

"If one has lost their job and can’t afford food, you don’t change the law to say just walk into the supermarket and demand free food and let the supermarkets bear all the loss, or catch a taxi and demand a free fare, or expect the hydro to just waive the bill, so why is it that landlords are the only class of citizen who must contribute to the social good when every other business and person is subsidised and compensated by either the federal or state government?”

According to Mr Berry, the TUT and other groups give no consideration to: 

• property owners also having lost employment / reduced hours.
• property owners have had to pause their mortgage repayments on the investment property due to non-payment of rent.
• property owners have had to pause their own house mortgage due to non-payment of rent / loss of employment / reduction in working hours
• Interest still accrues on mortgages putting further financial strain on the property owner.
• Outgoings must still be paid e.g. utilities, some land tax, body corporate fees, maintenance
• Many property owners have come to alternative arrangements with their tenants in the form of reduced rent, just as government asked. 

"The REIT firmly supports the current government Emergency Provisions that have been implemented but any further erosion of landlords’ rights is simply not acceptable," said Mr Berry.

"If this is to occur then landlords who are also suffering, some who have lost employment or on reduced income will have no other option but to sell their investment property. 

"This will then create real hardship for tenants and further impact private residential tenancy availability.

"The flow on effect of this is that burden is transferred onto the state government with increased demand for social housing." 

Currently in Tasmania REIT members are reporting an increase in their vacancy rates for rental properties and there is already pressure building on rents as they are decreasing. 

The REIT calls on all levels of government to stop "this continued persecution and demonization of landlords" and provide them with equal support that has been provided to others in the community.

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