In the debate over the past few weeks around who should foot the bill for tenants suffering COVID-19-related hardship, little if any concern has existed in the public narrative regarding the difficulties COVID-19 is causing the landlord, according to REINSW's CEO Tim McKibbin. 

"The NSW Government has made it very clear that landlords are expected and required to ‘waive’ all, or a significant portion, of the rent due by the Tenant; and ‘waive’ is a good descriptor, because the Landlord is waving goodbye to the money due to them," said Mr McKibbin. 

While NSW Fair Trading has made it clear any unpaid rent will accrue as arrears during this period, Mr McKibbin told WILLIAMS MEDIA that tenancy bodies are advising members to enter into negotiations even if they haven't been affected by Coronavirus.

At a Glance:

• NSW Fair Trading has stated unpaid rent will accrue as arrears during the pandemic.
• REINSW is concerned the burden will lay squarely on the landlord
• NSW Tenancy Union has encouraged tenants to negotiate rent reductions regardless of being affected by Coronavirus or not.

"The landlord is going to be expected to waive rent and tenancy unions are advising that even if not impacted by Coronavirus, tenants should negotiate a lower rent," said Mr McKibbin.

The NSW Tenancy Union's website  advises tenants "If you don't meet the (Coronavirus) eligibility requirements set out in the moratorium...you can still attempt to negotiate a reduced rent with your landlord."

Mr McKibbin said the overwhelming majority of landlords are ‘Mum and Dad’ investors, who own just one property, not Westfield and Stockland. 

Navigating rental arrangements under a pandemic

“The NSW Government proudly announced recently that it will be giving landlords a $440 million subsidy," said Mr McKibbin.

"That is generous, given it’s the landlord’s money they are giving back, collected from an unjust tax!" 

Mr McKibbin said he is puzzled over the Prime Minister, Scott Morrison's recent announcement where he praised the banks for stepping up and shouldering some of the load. 

“Precisely what the banks have done to earn this accolade, eludes me,” says Mr McKibbin.

“The bank is still going to get paid, and not only that, profit from their act of kindness. 

“So, the bank’s selfless action, to offer a deferment of the monthly repayment (or ‘mortgage holiday’ as it is also known) comes at a substantial cost.

"Landlords will still pay and pay it all, just a bit later on! 

“Of the three entities (Bank/Government/Landlord) providing assistance to the tenant, it is only the landlord shouldering any burden.

"The landlord is subsidising the tenant’s occupation of their property with real money, and if they take up the bank’s offer, paying for the privilege.

"The landlord also holds another unique position in this equation – the landlord is least financially capable to provide the assistance.”

All state and territory governments' rental support summarised

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