VIC Victoria's turn COVID-19 residential rental package

Discussion in 'Property Management' started by The Y-man, 15th Apr, 2020.

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  1. abc_123

    abc_123 Well-Known Member

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  2. AlphabetSoup

    AlphabetSoup Active Member

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    Yes, this confused me too when I read the legislation late last week. It goes against the legislation that allows people to lease break without penalties. Well, I personally won't be able to afford to remain in my own tenanted property past my lease, and I'm sure I won't be alone in that.

    I'm thinking this is simply poorly worded legislation that is a result of the government rushing through legislation without circulating copies prior for feedback from groups like the TUV/REIV/etc. I expect the government will have to provide clarity, but imagine the political backlash to the state government if they told tenants they *couldn't* move when their leases ended.
     
  3. Lil Skater

    Lil Skater Well-Known Member

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    Here's the full bill - Residential Tenancies starts on page 158 of the passed bill.

    As it stands, yes. Lease can still be terminated by mutual consent and I don't see how you can force someone to stay in a lease if they don't want to. What if a tenant bought a house 2 months ago and it's due to settle? It's just not feasible, I feel it's likely this will be amended or tested very quickly at VCAT.
     
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  4. TMNT

    TMNT Well-Known Member

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    Cant find the link now, but just read that the government is going to giving international students a one off cash payment

    bit hypocritical to be telling them to go home one minute and next minute this
     
  5. abc_123

    abc_123 Well-Known Member

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    But law is backdated to 29th March so notices given since then are technically invalid. Tenant is now at discrection of landlord as to whether they can move out (well tenant may have already moved out, but perhaps still be on the hook for rent).

    Apparently some property managers are already refusing to accept tenant notices. Don't know whether this is because landlords actually want to force the tenants to remain in the property or just confusion as to how the tenancy should legally end if the landlord is willing to accept the notice.

    Seems like this is creating similiar fear and outrage amongst tenants as the laws were for landlords.
     
  6. AlphabetSoup

    AlphabetSoup Active Member

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    It’s another division between federal and Victorian state governments.

    although I personally resent the idea (they’re supposed to have enough funds to support themselves at least for the first 12 months), the state government realises how important the education sector is to the Victorian economy. I remember reading that education was Melbourne’s largest export (and Victoria’s largest service based export).
     
  7. JValk87

    JValk87 Member

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    It's going to be interesting to see how this plays out. By all reports there are a lot more empty properties for rent and now tenants cannot even move to fill them. You wouldn't want to be holding an empty property with a mortgage to cover right now.
     
  8. Lil Skater

    Lil Skater Well-Known Member

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    Linky

    The laws are backdated, but if your tenant has given notice to vacate and secured a new property there’s argument for hardship. Same as if they purchased a property, or maybe they’re not in hardship but need a cheaper property to avoid it etc.

    Yes I have seen some property managers trying to force it. Mutual consent still stands though and any PM receiving a notice to vacate from a tenant now should be discussing this in depth with the owner prior to going back to the tenant given the information is so new and the differing opinions of CAV.

    It seems odd to backdate a law, but I’m not involved in those decisions so I have no idea how they decided that. Just got to roll with it, and I still assume this particular one will be challenged fairly quickly.
     
  9. abc_123

    abc_123 Well-Known Member

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    Yes, well technically landlords or tenants could have broken the law already and be subject to some form of penalty or some other form of legal action... I think they will backdate tax laws sometimes from the time of the announcement until they are passed (to stop a rush on doing whatever it was they want to stop for example) but that normally doesn't give occasion for someone to have actually committed something that might come with a penalty or legal action (as they haven't submitted their tax return etc yet so haven't actually done anything wrong...). So I think this is very unusual.
     
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  10. Huss518

    Huss518 Member

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    So as below, if I wanted to moved in different rental property or move back into my own home or a move in to a purchased property the only option is VCAT?

    545 When a tenant can give notice of intention
    to vacate—tenancy agreements
    (1) A tenant must not give a landlord a notice of
    intention to vacate rented premises under
    Subdivision 3 of Division 1 of Part 6
    unless—

    (a) the tenant requires special or personal
    care and needs to vacate the rented
    premises in order to obtain that care; or
    (b) the tenant has received a written offer
    of public housing from the Director of
    Housing; or
    (c) the tenant requires temporary crisis
    accommodation and needs to vacate the
    rented premises in order to obtain that
    accommodation; or
    (d) the tenant, who is an SDA resident,
    has been given a notice under
    section 498DA; or
    (e) the tenant is suffering severe hardship
     
  11. Simon Hampel

    Simon Hampel Founder Staff Member

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    I think I can understand the reasoning behind this clause - but I think it is an incredibly foolish thing to add and will have unintended consequences for both tenants and landlords.

    If I was a tenant in Victoria and I wanted to move to a cheaper property, but my landlord would not let me give my legislated 28 days notice under this new clause - the very first thing I would do is stop paying my rent until they agreed to release me.

    What is the landlord going to do? Take me to VCAT to have me kicked out of my property? I get what I wanted and the landlord loses.

    My advice to landlords: ALWAYS AGREE TO ALLOWING A TENANT TO GIVE FAIR NOTICE TO VACATE.

    This is a stupid clause and should be removed from the temporary legislation.
     
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  12. wentworthmeister

    wentworthmeister Member

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    I emailed my local MP who replied with the following:

    In other words, the wording in the bill that was passed is incorrect / doesn't reflect their intentions, and they will use s609 to issue subsequent regulation to correct/clarify it.
     
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  13. Luca

    Luca Well-Known Member

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    Correct me if I am wrong, however from what I read if the tenant stops paying and also fails to provide proof of hardship (e.g. letter of employer firing him) which means a conversation about rent reduction cannot start, we still need to follow the right procedure e.g. applying to VCAT? I think in this way we can at least recoup money from the insurance. We cannot evict for 6 months anyway however the major landlord insurances cover for 20 weeks rent which is not bad. I am currently experiencing this, happy to report how it goes.
     
  14. Lil Skater

    Lil Skater Well-Known Member

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    I did see they were planning on changing it. As above I don't think it was their intention.

    As far as I can tell and from others I've spoken to, yes. If the tenant willingly withholds rent then there is a provision that you can directly apply to VCAT to have the matter considered and potentially get an exception to the no evictions too.
     
  15. kr11

    kr11 Well-Known Member

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    Does anyone know when we can apply for the 25%land tax discount and do we need a letter from our pm, or something else
    Thanks in advance
     
  16. Lil Skater

    Lil Skater Well-Known Member

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    You can do it online, starts from tomorrow.

    FAQ linky
     
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  17. JValk87

    JValk87 Member

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    Looks like regs have been updated to allow VIC tenants to give notice, everyone...

    coronavirus (COVID-19) guide for renters - Tenants Victoria

     
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  18. TMNT

    TMNT Well-Known Member

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