Prime Minister's announcement re: evictions

@Omnimaqq23 this is Victoria - linky but I’d be seeking legal advice.

@Tom Rivera is in QLD and might have some advice @Whitecat

 

100% tenants need to prove hardship. I would want my PM to work even harder in working with the tenant and show real proof:
1. Written notice from Employer (if they have been made redundant/stood down/reduced hours etc.).
2. Any proof that they have exhausted all the options from Centrelink etc.
3. Finally, proof that they are not eligible for Superannuation pullout.
Only then, I will come to the party and start listening of any noise

 

Yep, it’s important to differentiate between those that need assistance and those that want to take advantage of the situation.

 

Yes, ll insurance will not pay out until tenant is evicted, further landlord must do everything possible to evict tenant as soon as possible in order to make a claim. But of course, landlord cannot evict when the other states follow Tasmania.

I have asked my ll insurer what their position is, whether they feel that the new laws mean we are not covered at all even for the limited number of weeks rent default they cover. I don't know if they are willing to say anything at this stage. I would have thought maybe they would be scrambling to reword their policies at the moment to provide a definite out for themselves...

I imagine there are much greater impacts on ll insurance than tenant rent default, such as being unable to evict a tenant who is damaging the property, again if we follow Tasmania, cannot evict for tenant damage, so cannot mitigate losses for ll insurance purposes.

 

No, no evictions for any reason, even if the notice was already served, if all states follow the law already in Tasmania

 

It will never happen, payment plan for 6 months tenant would just walk, far more attractive

 

but you cant evict them regardless?? Thats the issue and some tenants will take advantage of this, unless there are safety nets in place for LL?? Dont know? But PM stating LL and tenant need to work it out is not comforting

PM press release tells us nothing

 

Absolutely agree, I know it’s a situation that’s not come up before - but sort it out yourself isn’t a solution.

And yes, you won’t be able to evict either way - but perhaps good insight into not renewing later? Or more “power” if they fall into arrears after the 6 months where you may be able to show that they were taking advantage. Honestly though my guess is as good as anyone else’s, we won’t really know how it’s going to play out until it does. More research to do before jumping the gun.

 

Part of the preparation for this in NSW was an amendment to the residential tenancy act

NSW legislation

No doubt other states will have done the same.

 

Yes this NSW legislation came out Wednesday night...on Thursday morning a friend of mine told me his tenant said he can't pay the rent anymore.

I think economists call this 'moral hazard'.

 

I am just holding my breath waiting for the legislation to be penned in the states I have pptys in.

 

My agent said many tenants have come in and handed in keys as they lost jobs.
Agent convinced some of them to work out rent reduction with landlord BECAUSE there is a big increase in empty houses, and it would be hard to find a new tenant now.
My insurer said they will not cover rent loss etc, unless tenant has vacated, and unless correct termination notices issued etc.
So, I already did the following last week:
1. reassured tenants I would not turf them out if they lost their jobs.
2. Offered a rent reduction IF they lost their jobs (as I figure paying something is better than paying nothing). But I will require proof they have lost their jobs, and I pointed out how much they can claim on Centrelink, including rent assistance. If they choose to pay no rent, I may dob them into Centrelink for falsely claiming rent assistance (I may also warn them that Centrelink can cut off all payments if people falsely claim rent assistance - hopefully this should motivate them to pay something.) Another option if they pay nothing is to give them 6 months notice to terminate - wonder if this is legal? Maybe that would get around insurers requirements.

 

Why don't the government setup funding system like HECS to help tenants with financial hardship to pay rent

 

More details regarding moratorium on eviction. It doesn't say much regarding residential tenancies except "financial distress".

National Cabinet Statement | Prime Minister of Australia

Commercial and residential tenancies

As part of its work on helping businesses hibernate, National Cabinet agreed that short-term intervention is needed for commercial tenancies. Work on this has begun, but there is more to do, including for residential tenancies.

National Cabinet agreed to a moratorium on evictions over the next six months for commercial and residential tenancies in financial distress who are unable to meet their commitments due to the impact of coronavirus.

Commercial tenants, landlords and financial institutions are encouraged to sit down together to find a way through to ensure that businesses can survive and be there on the other side. As part of this, National Cabinet agreed to a common set of principles, endorsed by Treasurers, to underpin and govern intervention to aid commercial tenancies as follows:

• a short term, temporary moratorium on eviction for non-payment of rent to be applied across commercial tenancies impacted by severe rental distress due to coronavirus;
• tenants and landlords are encouraged to agree on rent relief or temporary amendments to the lease;
• the reduction or waiver of rental payment for a defined period for impacted tenants;
• the ability for tenants to terminate leases and/or seek mediation or conciliation on the grounds of financial distress;
• commercial property owners should ensure that any benefits received in respect of their properties should also benefit their tenants in proportion to the economic impact caused by coronavirus;
• landlords and tenants not significantly affected by coronavirus are expected to honour their lease and rental agreements; and
• cost-sharing or deferral of losses between landlords and tenants, with Commonwealth, state and territory governments, local government and financial institutions to consider mechanisms to provide assistance.

 

Personally I would prefer this scenario over a tenant continuing to stay on and not paying rent. Probably use the downtime to do a reno. At least there's no lockdown. Oh wait...

 

I'm currently a tenant in financial distress - but I haven't lost my job.
Instead, the person I had been sharing my apartment has fled (they lost their job!). Our property manager had insisted from day dot that I was the only name on the lease, so now the responsibility for the entire overpriced apartment falls on me.

Where I used to have 50+ people express interest in this room when advertised, currently I haven't been able to find anyone else interested in renting the room at the moment. There are more advertised ads for my suburb than I have ever seen... just pages and pages of empty rooms. The suburb I live in was previously full of international students and working holiday makers - and most of them have fled to their home countries.

There is massively reduced demand in my inner city suburb. My buffer might only last a few months. I wish I could hand in the keys - there are so many other more reasonably priced options out there - but my lease isn't due to expire until the end of the year.

 

That's going to be hard to prove. Even income making tenants would be enticed to not pay rent.