VIC Victoria COVID rental eviction moratorium extended to 28 Mar 2021

Discussion in 'Property Management' started by Simon Hampel, 20th Aug, 2020.

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  1. Simon Hampel

    Simon Hampel Founder Staff Member

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    Victoria's ban on evicting tenants to be extended until the end of the year

    Victoria's moratorium on rental evictions and rent increases will be extended until the end of the year.

    The laws, introduced in late March to protect tenants suffering financial distress because of the pandemic, were due to expire on September 29.

    Rental increases and evictions for both residential and commercial tenants will now remain banned until December 31.

    "Nobody should be worried about losing a roof over their head right now, particularly given the circumstances around social distancing," Victorian Treasurer Tim Pallas said.

    Land tax relief for eligible residential and commercial landlords is also being extended, and the potential discount has doubled from 25 per cent to 50 per cent.

    The Victorian Government is also setting up a $60 million fund to support small commercial landlords, who may be eligible for payments of up to $3,000 per tenancy.

    Tenant advocacy services will also receive funding as part of a new $600,000 package.

    "To get through this together, all of us — tenants, landlords, businesses, governments, banks — we need to work together," Mr Pallas said.

    "And certainly these arrangements, which seek to strike that right balance, are aimed at ensuring that where the right thing is done by a landlord for a tenant, where they comply with the eligible criteria, then they too can expect that the state will provide them with relief as well."

    ... read more
     
  2. sam999

    sam999 Active Member

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    more bad news for LLs
    another excuse for lazy tenants to stop paying rent
    my IP in mel had rent reduction for 3 months to 50% and now I bet the tenants will come back and ask for extension
     
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  3. kaibo

    kaibo Well-Known Member

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    25% reduction in Land tax when rent reduced by 50% is the biggest joke ever.

    The should say

    "Nobody should be worried about reneging on a signed legal Document"
     
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  4. TMNT

    TMNT Well-Known Member

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    In my relatives case, it dont really matter.

    Ip being vacant for 6 to 8 weeks with reductions
     
  5. frank22

    frank22 Well-Known Member

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    What happens if the tenant is in arrears over 14 days and refuses to answer the phone ? You cannot issue a 14 NTV under the current COVID19 regulations . Insurance claim is not feasible at this stage .So it 's just a wait and see and there is 3 months of this to go .
     
  6. Michelle Evans

    Michelle Evans Well-Known Member

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    Worse news...

    As we all know this legislation was to be repealed at the end of September, in August it was announced that this legislation would be extended until 31/12/2020.

    Today, the bill to extend the legislation is before parliament today and will extend this period until end of March 2021.
     
  7. Michelle Evans

    Michelle Evans Well-Known Member

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    It's completely different at the moment, but if the tenant isn't paying, on day 15 you can submit a case at consumer affairs to get a case reference number then use that to apply to VCAT for a termination order for non compliance of the lease (not paying rent means that they're not complying with the lease) However, if you get to VCAT and the tenant proves they're non-payment of rent is due to covid, they won't give you possession.
     
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  8. frank22

    frank22 Well-Known Member

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    Thanks . Just to be clear and correct me if I am wrong we cannot issue a 14 NTV under the current legislation because they are overdue .We need a case reference number first prior to applying to VCAT for a termination order for non compliance of the lease,and wait for a hearing (wait time 3 months I was informed ). How do I get a case reference from CAV? Have you been through this process before ?
     
  9. Michelle Evans

    Michelle Evans Well-Known Member

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    Realistically, it's just different terminology and a slightly different process. There's no 14 day notice to vacate currently. (in the past you'd issue a 14 day notice to vacate, then wait 7 days for it to be deemed served, then apply for a hearing)

    Now, you just make a straight application for termination due to breach of tenancy. You submit the details online to consumer affairs to get a reference number (instant) then you make an application to VCAT for a termination and possession order due to breach of agreement. I have one ongoing at the moment, applied on the 18/08 and have a hearing on the 7/09 which is not a bad turn around. If my tenants weren't paying their rent and were not affected by covid, I would expect to be getting possession.

    My hearing will be a little more complicated than that (it's for a property I manage in Melton) and the tenant has started paying rent again (They're only 7 days behind now) so I'm expecting an order that will continue the tenancy but hopefully show the tenant we're serious and that they need to meet their obligations given they're income is centerlink based so covid has actually improved their financial standing with the bonus payments!
     
  10. Simon Hampel

    Simon Hampel Founder Staff Member

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    Ouch.

    Will be very interesting to see how long the banks are prepared to play nice here.

    If we're not careful, there is the potential for this to cause a cascade of problems:
    1. tenants can't pay their rent - can't be evicted
    2. landlords can't make their loan repayments
    3. banks start to foreclose on bad loans
    4. banks suffer increasing impairment charges
    5. banks struggle to maintain the quality of their loan books
    6. banks wholesale borrowing costs go up
    7. banks forced to increase rates to cover their costs
    8. more people get into difficult paying their loans due to higher costs
    9. etc
     
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  11. bamp

    bamp Well-Known Member

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    Are there no vic property investors here? Would have expected a lot more noise from this. I like the vic PM, but we are now living in a communist society if the government is interfering in private contracts
     
  12. alicudi

    alicudi Well-Known Member

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    I can confirm Vic property investors are reading including those with interests in retail shopping centres but have to keep their tongues tied and aren't able to comment in a public forum, lots of disputes and mediation currently in progress in this area for many of the retail landlords.
     
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  13. sqe

    sqe Well-Known Member

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    The Victorian Labor party has completely dropped the ball in 2020. They are just lucky the next election is 2022. If it were in 2021 it would be a landslide to the libs
     
    Last edited by a moderator: 4th Sep, 2020
  14. kaibo

    kaibo Well-Known Member

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    We are in a bubble here (especially this thread), if there was a State election tomorrow I wouldn't think there would be a change in government.
     
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  15. Ted Varrick

    Ted Varrick Well-Known Member

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    Sim, I can't click Like for this, but if you implement an "Agree, but Don't Like" button, I would have clicked it....

    I can't imagine how many tenants and landlords are going to find themselves in dire straits in the next 6 months or a year or so, assuming that the JK and JS govt payments wind back.

    Hopefully it's a soft landing, as opposed to the alternative.
     
  16. Michelle Evans

    Michelle Evans Well-Known Member

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  17. frank22

    frank22 Well-Known Member

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    I am just concentrating on the legislation in place and how best to work with it or around it ie bend the rules ,not break them(no choice ). Spoke to CAV today and they recommended ,RRP (residential rental providers ,LOL!!) lodge a dispute application first instead of applying to VACT first for a termination order .If the dispute resolution fails,then you have a better chance at VCAT. reason being if you get a hearing with VCAT ,and the tenant only mentions "hardship " it will get thrown out and it is a waste of your time. This by the way is only if the tenant has not advised you they are in financial hardship and approached you for a discounted rental but,merely avoiding paying the rent. It is a dogs breakfast and would love to hear if anyone has been through this process. I know michelle has a case pending with VCAT
     
  18. JValk87

    JValk87 Member

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    RBA will ensure a supply of cheap capital to banks, so we don't have to worry too much about increasing rates.
     
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  19. sqe

    sqe Well-Known Member

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    Hmmmm I don't know anyone that supports what Dan is doing in Melbourne. Perhaps I live in a big bubble of supporters
     
    Last edited by a moderator: 6th Sep, 2020
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  20. JValk87

    JValk87 Member

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    Stage four lockdown: How Melbourne’s real estate industry will be impacted by Daniel Andrews’ roadmap for reopening - realestate.com.au

    Any thoughts? My most immediate;

    1) If I were a tenant claiming that I need a reduction due to a lack of income, I would just stop paying if a landlord refused to come to the table and negotiate.

    2) The dispute resolution system is likely to become overwhelmed, leading to delays.

    3) Courts do not look favourably upon either party being unwilling to negotiate in good faith. If things do go that far, advice from REIV could lead to worse outcomes for landlords.
     
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