QLD Queensland COVID-19 residential tenancy legislation

Discussion in 'Property Management' started by HUGH72, 9th Apr, 2020.

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  1. marmot

    marmot Well-Known Member

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    Any sort of investment carries risk , property is no different, and over the years peoples appetite for risk has also increased, banks actively encouraged owners to buy IPs even before the PPOR was paid off , many went even further and were/are trying to service multiple mortgages at the same time , its high risk with high reward .
    Interestingly during the last major recession something like well over 20% of investors dissappeared from the market .
    Many will probably dissappear this time , along with many businesses, no one planned for over a couple of million people to just lose their jobs , or for entire industries to just shut down virtually overnight.
    It just happened !!!.
    Virtually everyone's is going to lose money , some will lose more than others especially if they take on high risk, and even more if they refuse to accept what is happening around them and dont try to get into a more defensive position.
     
  2. Simon Hampel

    Simon Hampel Founder Staff Member

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    QLD Government Residential Rental Hub: The Hub

    This should be your go-to for information about tenant and landlord obligations in Queensland.
     
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  3. Simon Hampel

    Simon Hampel Founder Staff Member

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    For renters

    Paying rent

    I have lost my job due to COVID-19. Can I be evicted and what can I do if I can't pay my rent?

    A freeze on evictions has been announced. If you can’t pay your full rent you should work through a new rental rate with your property owner and formalise the new rent amount in writing. The RTA has a COVID-19 General Tenancy COVID-19 special terms form (18D) so the new agreement can be recorded properly.

    Once the new amount has been agreed, this becomes the new rent amount. For example, if the rent goes from $400 per week to $200 per week, this becomes the new agreed rent and you are no longer liable for the old rent amount. You should specify the timeframe for the reduced rent, for example 6 months or until your income loss is resolved if earlier.

    If you can’t come to an agreement with your property owner or agent, you should register immediately for conciliation. During this time, you should keep paying what you think is reasonable. As a general guide, it is 30% of your income. In conciliation, you will need to demonstrate your loss of income due to COVID-19. You will also need to demonstrate your income support payments or the steps you’ve taken towards getting income support.
     
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  4. Simon Hampel

    Simon Hampel Founder Staff Member

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    I have been issued with a notice to leave. Do I have to leave?

    You cannot be evicted for rent arrears due to financial distress caused by COVID-19. If you have received a notice to leave in these circumstances, you should contact the property manager or owner to discuss this and negotiate a way to manage the issue.

    There are approved reasons for ending a tenancy which will still apply. These include for example, where the premises are being sold or the owner is preparing the property for sale or there has been a serious unremedied breach by tenant (other than failure to pay rent due to hardship related to COVID-19). The full set of approved reasons to end a tenancy are available on the RTA website www.rta.qld.gov.au/Renting/Ending-a-tenancy/Ending-a-tenancy-agreement
     
  5. Simon Hampel

    Simon Hampel Founder Staff Member

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    What if my tenancy is due to end within the 6 months evictions moratorium period?

    If your lease expires within the 6 month period that the freeze on evictions applies and you wish to stay in the property, your property owner must offer you a 6 month extension of the lease. This is not a new agreement and should be an extension of your current agreement.​
     
  6. Simon Hampel

    Simon Hampel Founder Staff Member

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    For property owners

    My tenant says they can't pay the rent anymore. I still have bills to pay.

    Try to minimise the potential for tension or stress by communicating openly, understanding each other’s circumstance and working together to agree a way forward that works for both of you.

    We are placing a freeze on evictions due to rent arrears for Queensland tenants experiencing financial distress due to the impacts of COVID-19, so it's important that property owners and tenants work together to find solutions. This freeze will apply from 29th March 2020 and extend for six months.

    If your tenant is experiencing financial hardship due to COVID-19, please consider requests for reduced rent

    It’s important that you talk with your tenant and try to reach agreement. You can ask why the tenant is having trouble paying their rent, but you can’t ask for information about their finances or for them to draw on their superannuation or sell personal items to raise the money for rent.

    If you are unable to reach agreement, conciliation through the RTA will be a mandatory process. The RTA can ask the tenant to provide information about their personal finances that can assist to resolve the dispute.
     
  7. Simon Hampel

    Simon Hampel Founder Staff Member

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    My tenants were behind with their rent before the pandemic was declared.

    A freeze on evictions due to rent arrears caused by financial distress due to the impacts of COVID-19 was announced on 29th March 2020.

    If the rent arrears are not caused by financial distress due to the impacts of COVID-19, you should follow the normal breach processes for rent arrears.

    It is important to work with your tenant to try reaching an agreement about these issues during the pandemic.​
     
  8. Simon Hampel

    Simon Hampel Founder Staff Member

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    Does my previous notice to leave still apply if it was before the emergency arrangements started?

    A freeze on evictions due to rent arrears caused by financial distress due to the impacts of COVID-19 was announced on 29th March 2020. A notice to leave issued before this date may still apply if it was:
    • for rent arrears not caused by financial distress due to COVID-19
    • an approved reason to end a tenancy that is not related to rent arrears.
    If your tenant raises concerns about challenges, they will face to comply with the notice to leave, talk to them openly, try to understand each other's circumstances and develop an acceptable solution.​
     
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  9. Simon Hampel

    Simon Hampel Founder Staff Member

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    When can I issue a notice to leave?

    You can issue a notice to leave for an approved reason to end a tenancy except for rent arrears caused by financial distress due to the impact of COVID-19. If a lease expires within the six month freeze on evictions, you must offer a minimum six month extension of the lease. This is not a new agreement and should be an extension of your current agreement.​
     
  10. Simon Hampel

    Simon Hampel Founder Staff Member

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    I don't think there is anything terribly unreasonable in that legislation.

    That's not to say it will be easy for landlords.

    The key will be how effective the conciliation process is - if they are swamped (which they will be) it will be pretty difficult to make progress.

    The fact that the RTA will be able to demand proof of the tenant's financial circumstances is important here.
     
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  11. TMNT

    TMNT Well-Known Member

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    What drugs are you on this morning???

    Virtually every line and everything you quoted says "nothing inconvenient can happen to the tenant, the landlord will just have to sort it out themselves at huge cost to them", They'll be right

    Edit: switch around the terms "tenant" and "landlord " and see the general population rioting and burning the country to the ground
     
    Last edited: 10th Apr, 2020
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  12. Simon Hampel

    Simon Hampel Founder Staff Member

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    Did you expect anything else?

    The tenant is still expected to pay rent. The amount will need to be agreed to and if an agreement can't be reached, there will be a mandatory conciliation process where the tenant will need to prove their financial situation and take into account any government benefits they are paid. There should be no freeloading.

    There's nothing ideal about this - but realistically, what are the alternatives?

    The big question will be how landlord insurance will handle this. That could be a huge issue.
     
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  13. Gill Bates

    Gill Bates Well-Known Member

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    Yes that is right.

    The point is
    However the governments changes here are very heavily in favor of the tenant.
     
  14. TMNT

    TMNT Well-Known Member

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    obviously, what I wanted, what I thought fair, and what the best realistic scenario are completely different

    but

    best case realistic scenario for me would have been
    - you cannot be evicted but you still do owe the rent, upon the moratorium ending and you have arrears, you MUST enter into a payment plan/wage garnishing etc. and is legally binding, if you dont not follow, it WILL effect your credit file
    - you must provide payslips, seperation letter, bank account to prove hardship. Dipping into super is not required
    - if your government benefits represent over X% of the rent, you are not eligible for a rent reduction
    - we want to look after landlords too so we have introducted a new Covid Centrepay where agreed rent (or agreed upon rent) will be automatically deducted from your centrelink payments . and this cannot be modified/cancelled at any time
    - since LL insurance invalidates claims if discount/holiday on rent is offered, we will force insurance companies to exclude this clause
    - for every week the tenant does not pay rent, the shortage will be offerd as compensation/tax deductions/mortgage reductions/utilities reduction etc. etc. etc.

    The above in my opinion, makes it just about completely level and fair, but obviously will never happen
     
    Last edited: 10th Apr, 2020
  15. NedKelly

    NedKelly Well-Known Member

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    My tenant lost his job.
    With the 4 week rent grant paid direct to the landlord, his jobseeker allowance and the coronavirus stimulus payments and tax credits he is actually better off than when he was working.
     
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  16. Anchor

    Anchor Well-Known Member

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    It is grossly unfair to leave the banks spreads untouched from rent moratorium.
    Individuals (both tenants and LL) have limited capacity to absorb income losses as compared to banks/institutions.

    If mortgage rates have a cap pegged to RBA rates, the savings can be transferred
    banks->LL->tenant.
    Losses are not capitalised and LLs can still snap back without permanent damage, loss of assets or super.

    Banks still make profit but less of it... there is no reason for banks to be charging > 4% when rest of society is locked up. More so when they are backed by tax payer and rates are historically the lowest.

    Similarly council, water, electricity, insurance, registrations, REA rates should be capped.

    Ideally government should not be interfering in businesses but if they do, it should be equitable and institutions most able should carry their share. Pitting LLs.against tenants while having no scrutiny on banks appears to be a political capitulation to lobbying.

    Stay safe
     
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  17. Simon Hampel

    Simon Hampel Founder Staff Member

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    The problem is that many tenants would not be able to pay back those arrears - even when they get their job back. Having tenants accrue debts is exactly what the legislation is trying to avoid.

    The RTA can demand this if you are not convinced that the tenant is being straight with you.

    The guideline used by the RTA seems to be 30% of income is a reasonable amount to pay for rent.

    The issue will be where people identify arbitrage opportunities and work out that they are better off not working compared to getting a new job. I haven't done the sums to work out if that's actually an issue.

    I agree this is a big issue. The landlord insurers are in for a tough ride if they don't come to the party here - it will come down to how hard arsed they choose to be. Could seriously damage their reputation. Going to be interesting to see how this plays out.
     
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  18. TMNT

    TMNT Well-Known Member

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    I agree, having debts at the end is not ideal, but landlords are guaranteed to have debts for non payment of rent, as I previously said, if they forced banks to void mortgage payments for 6 months or similar, then I have absolutely no issues

    they may be able to demand, but they cant be evicted anyway, so as my daughter said to me, whats the point even if they are not in hardship and even say "well I cant get evicted, so im going to use my rent as a down payment for a new car on finance"

    guidelines unfortunately, arent rules/laws, unfortunately, some will fall through the cracks, some will take advantage of it,

    if the government puts in policies that allows some to sit at home, get paid more, thats good for them and not the landlords problem, (when the stimulus kicks in i will get paid the same/more than when I was working just before covid hit, I am not complaining, but I still continue to pay rent)

    I have no love for insurance companies, but I hope they do come to the party, all but 1 or 2 of my insurance claims in my property investment history I got paid out what I thought was fair or more
     
  19. abc_123

    abc_123 Well-Known Member

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    Yes to the point where the "negotiation" has no meaning because the landlord has no power in the negotiation and obtains no benefit by any agreement and will just affect their insurance. So I do not see why all landlords will simply say no to the "negotiation".

    The tribunal will be overrun.

    And that is before tenants start complaining to tribunal that their landlord is not fixing things either because they simply cannot afford to or because they do not feel so inclined when they are forced to provide social housing. Now what further punishment will tribunal dish out to landlords when they are already receiving zero or a fraction of market rent anyway in lieu of the rent reduction they would normally award in such a situation.
     
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  20. Closet

    Closet Well-Known Member

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    I think that maybe a loophole for a landlord needing to get out without being impacted for another 6 months...prepare for sale...
     
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