Tenancy Evictions: COVID-19
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As at 3pm Wednesday 15 April 2020. The National Cabinet previously announced a 6 month moratorium on evictions, meaning the tenant cannot be evicted in a residential tenancy - but it's not as simple as that.
Different provisions are provided by the individual state or territory which you can view here: New residential tenancy laws: COVID-19.
The Australian Government has urged the states and territories to keep things as consistent as possible therefore here is a very general perspective:
- Tenants still need to pay rent as per their lease agreement, the moratorium on evictions simply means tenants cannot be evicted under certain circumstances. For example if they can verify hardship due to COVID-19, however Tasmania have a more blanket eviction rule.
- Rent Relief grants may be available to tenants who can show hardship due to COVID-19. (Eg QLD have one)
- Land Tax relief may be available to landlords where their tenancy has been affected by COVID-19.
- Each state has their own with frameworks to follow if tenants are late in rent. For example in NSW it's advised that if a tenant has lost 25% of their income (after tax) due to COVID-19 they have grounds to negotiate with the landlord, however the landlord does not need to agree to anything.
Specific information for your state here: New residential tenancy laws: COVID-19.
Our general thoughts:
Our current advice for landlords is to do the right thing. Try to help your tenant (these options will help: Rent payment issues during COVID-19) but if the tenant is not co-operating with you, you have no choice but to follow the standard eviction procedures at this point or use the mediation services provided by your state's tribunal. The Tribunal in your division (State) will most likely not hear an application for possession (termination for non payment of rent) but you still need to make the application to Tribunal within the proper time frame (after serving the eviction notice) to keep within the guidlines and requirements of your Landlord Insurance policy so we still need to follow normal processes until we hear more.
Contact us if you have questions.
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Rent payment issues during COVID-19
New residential tenancy laws: COVID-19
Previous Updates
As at 11am Friday 10 April 2020 (Good Friday): On the 7th April during the press conference Scott Morrison said residential tenancies would be handled by each state and territory. The national cabinet is only dealing with commercial tenancies.
More clarity around evictions will be provided by the individual state or territory which you can view here: New residential tenancy laws: COVID-19
The Australian Government has urged the states and territories to keep things as consistent as possible therefore here is a very general perspective:
- Tenants still need to pay rent as per their lease agreement, the moratorium on evictions (meaning a tenant cannot not be evicted) simply means they cannot be evicted under certain circumstances:
- Tasmania have a more blanket rule about evictions where as Queensland Government has said "We are placing a freeze on evictions due to rent arrears for Queensland tenants experiencing financial distress due to the impacts of COVID-19,..".
- Rent Relief grants may be available to tenants who can show hardship due to COVID-19. (Eg QLD have one)
- Land Tax relief may be available to landlords where their tenancy has been affected by COVID-19.
Our thoughts:
Our current advice for landlords is to do the right thing. Try to help your tenant (these options will help: Rent payment issues during COVID-19) but if the tenant is not co-operating with you, you have no choice but to follow the standard eviction procedures at this point. The Tribunal in your division (State) will most likely not hear your application but you still need to make the application to Tribunal within the proper time frame (after serving the eviction notice) to keep within the guidlines and requirements of your Landlord Insurance policy so we still need to follow normal processes until we hear more.
As at 4pm 3 April 2020: During the press conference held by the Australian Government this Friday afternoon Scott Morrison said: The priority has been given to Commercial (and Retail) tenancies (rather than residential tenancies) due to the many business closures. He confirmed he has previously announced there was a moratorium on evictions (meaning a tenant could not be evicted). He confirmed tenants still need to pay rent and that there is further work to be done by the Treasury for Residential tenancies.
View the full Press Conference here. The above was mentioned in response to a question starting at 31min 25sec.
Our thoughts: It's still somewhat a guessing game however you can check New residential tenancy laws: COVID-19 for individual State and Territory information. It's worth pointing out, the Prime Minister of Australia did mention while answering the above question from today's press conference that Commercial tenants who had not had a reduction in their business, their leasing arrangements still stand. This might indicate that the measures the Treasury may enforce on residential tenants could be similar, whereby if the tenant is unable to prove Hardship (in someway due to COVID-19) the eviction freeze may not apply to that tenancy - we don't know??
Our current advice for landlords is to do the right thing. Try to help your tenant (these options will help: Rent payment issues during COVID-19) but if the tenant is not co-operating with you, you have no choice but to follow the standard eviction procedures at this point. The Tribunal in your division (State) will most likely not hear your application but you still need to make the application to Tribunal within the proper time frame (after serving the eviction notice) to keep within the guidlines and requirements of your Landlord Insurance policy so we still need to follow normal processes until we hear more.
As at 6pm 31 March 2020: On 29 March 2020, Australian governments met as the National Cabinet and announced that evictions will be put on hold for six months for residential and commercial tenancies affected by the financial impacts of COVID-19, with more information to come this week. It appears Tasmania has already implemented this.
As at 9am Monday 30 March 2020: In short it is extremely frustrating that we are still waiting to know what the provisions for landlords and tenants are going to be however there is lots to work through for the government so we need to be patient (as possible). At this point, Monday 9am we still recommend landlords and tenants holding off further agreements a couple more days if possible. If you cannot, read below and contact us if you need to.
Latest information coming from the Government: Scott Morrison said in his press conference last night (Sunday) that " further discussions over the next couple of days will take place to seek to get even stronger provisions in place so they (landlords and tenants, although focusing on commercial tenancies) can all sit down and get this sorted but there is nothing stopping everyone from sitting down tomorrow and working out a good a good deal that see's everyone through. It means everyone is going to have to carry a bit." . In addition, new WhatsApp released yesterday said "Renters - Evictions will be put in hold for six months by the States & Territories. Landlords and renters are encouraged to talk about short term agreements. More information to come this week".
As at 7pm Friday 27 March 2020: we still have not heard the new tenancy laws that are likely to come out, which will provide more protection to both owners and tenants. We believe (or hope is a better word) that we will receive some information by Monday (30 March), that tenants will be able to claim Hardship under certain conditions relating to the COVID-19. This will enable the owner to support the tenant to stay in the property while still being protected themselves, a win-win for everyone. Based on this belief we recommend not to sign any agreements just yet. Hold fire for a couple more days!