VIC Victoria's turn COVID-19 residential rental package

Tribunal might say - hey, why didn't you follow what the government suggest to reduce rent and work sth out with the tenant, probably it favours the tenant more and u lose.
LL insurance - they have been keeping silence in the last few weeks/months, who knows if they secretly moved the goalpost without letting you know.

 

Is it $2000 per property?

 

I'm surprised there is no mention of the Agents coming to the party as well and waiving off part of their fees/commissions

 

They have been run off their feet. Their income will take a hit commensurate with the rent reductions upon which there commissions are based as you mention. They are putting out bushfires left right and centre with, not just the crisis and those in genuine need, but with the confusion particularly past three weeks by the blanket declarations made federally in the absence of details and criteria at state levels. They are certainly all earning their coin.

 

https://reiv.com.au/policy-resources/latest-news/residential-rent-relief-package

So rent reductions will be "ordered"?

 

VCAT already have the power to change agreements, including reducing rent.

This is normally where a rent increase has been served and taken to CAV, they will write a report - but the owner doesn’t need to reduce or waive the increase without an enforcement order from VCAT.

It may, however, follow a similar process. And I imagine the enforcement of it will be limited to those who are in very severe hardship. Still hasn’t gone through parliament though, end of the week/early next week will be when things should be clarified.

 

True, but I'm pretty sure this is a power to stop excessive rent. There's similar in each state's RTA. Its almost always only triggered by one of two things:

1. An unreasonable attempt to increase the rent by the lessor; or
2. A loss of amenity of the premises through no fault of either lessor or tenant.

Its quite a different thing to force a rent reduction based solely on the hardship of the tenant. Its almost unprecedented at law. And has lots of practical and legislative issues.

So I would be very confident that it doesn't become a 'thing' even in these crazy times.

 

Yes, this is true. Exactly why I said previously rent is based on market, and not what a tenant can afford.

I doubt it’s going to be very common, even if it does pass. How can you determine if a tenants affordability is a reasonable return for the owner financial situation? You can’t.

I don’t think it’s anything to be too worried about until we have further information.

Waiting eagerly though to see how it all comes about and whether there will be much consultation before it is all official.

 

Am I right in saying nothing has been pasted through Parliament yet? What are you guys doing in the meantime (Victoria specific). My tenant stopped paying, hasn`t provided any evidence of job loss and is proposing a 50% discount which is too much for me. My PM will serve a notice this week.

 

Actually, the legislation passed in parliament on the 24th (Thursday).
50% is a bit steep. I'd be asking what their current income is... I think an expectation that they are paying 30% of their net income is fair. But so many variables at hand, this may not be suitable for the suburb/property you have invested in.

 

We were expecting it to be spelt out today, but it has passed.

Still relies on negotiating in good faith and includes some other measures, but flat out refusing to pay the rent is not on.

Also, for anyone interested - the upcoming legislation changes have been pushed back to commence by 1st Jan 2021 instead of July. But still could come in at any stage.

 

I couldn`t find any link stating the rental relief has been passed...

 

Consumer Affairs information

Rent relief grant information

 

Because govt running on tight budget, and they really need the money. So hoping it doesn't happen.

 

I actually cannot find any news where it says it has been passed to parliament.

 

when is lease up? if on month to month only need 2 months in Victoria if selling or moving back in. Assuming the place is not trashed most of the time bond is 6 weeks so you can do the sums. If there is a while to go in lease then you are doing the right thing. If they want 50% reduction then they can terminate the lease without incurring fees (law allows that now) and move somewhere where the market rent is 50% less

 

Thanks, so it is actually not law yet, just guidelines I guess?

 

Fair point, thanks for the suggestion. Lease expires in 3 months, still you cannot evict them if they don`t pay.