WA WA state COVID-19 residential tenancies legislation

Okay I just finished attendance at a briefing from DMIRS on the new legislation. Apparently its been assented and likely to come in force tomorrow.

Weirdly and annoyingly, there's no 'as amended' version that incorporates the changes from the Legislative Council.

But its going to be a doozy. I don't really know where to start to describe it. Big issues will come out of the protections for boarders/lodgers, and also mandatory conciliation for disputes under the new provisions.

 

Lots of potential issues but interestingly lessors can potentially terminate a tenant during the emergency period, and even if they are in covid related financial hardship.

 

Some more info here;
https://www.commerce.wa.gov.au/announcements/moratorium-residential-tenancy-evictions-becomes-law-wa

Anyone know if landlords can request to see proof of hardship? Nothing is mentioned now.

21 days notice to break lease, which seems ok.

What exactly is a 'reasonable repayment plan'.

 

Landlords have always been allowed to despite some of the speculation around the traps. Nothing's changed on that front.

 

Given the hassle of moving (both physical and admin) - can't ask a group of mates to come and help - I would anyone be rushing to move unless they are or expect to be in financial straits? And if they're headed that way you'd be better off seeing them go voluntarily than going without all or some of the rent for six months then having a messy xCAT hearing.

 

All seems fairly reasonable and equitable from the little detail in that media release.

 

Rental grants of $2,000, $100m in land tax relief form part of new WA coronavirus relief package

 

So seems they pay up to $2k to the landlord that is great. A few things seem unclear though.

The financial hardship do you have to fit all 4? For example a tenant who is on a temporary protection visa and not eligable for centrelink? Who also still has some work but hours are cut right back? In this case rent would be far more that 25% on income.

I also note it says u get 4 weeks of whatever the rent is reduced by however do you have to reduce the rent for the next six months or just the 4 weeks the govt pays for the difference?

cheers

https://www.commerce.wa.gov.au/consumer-protection/residential-rent-relief-grant-scheme


Eligibility criteria:

• You are resident in WA
• You have, or shortly will have, lodged a tenancy bond with the Bond Administrator
• You are a permanent resident, Australian citizen, have a temporary or permanent protection visa or bridging visa
• You live in a private residential property, rooming house or residential park
• You are in ‘financial hardship’, meaning you:
  • Lost your job on or after 20 March 2020
  • Have applied for Centrelink income support
  • Have less than $10k of household savings
  • Are currently paying rent of at least 25 per cent of the total household income after tax
• You have agreed to a reduction in rent with your landlord, or have engaged in the Residential Tenancy Mandatory Conciliation service through Consumer Protection.

 

I had a look at this WA relief package for residential landlords/tenants and it looks like a token effort by the State Government and no surprises, it places most of the financial burden on Landlords. The example provided would not incentivize any landlord to drop their rent. So tenant is paying $400 per week rent you agree to reduce it to $200 per week they times this by 4 so this provides a grant of $800 payable to Landlord. But say you have 6 months left on the lease (can't evict for 6 months) the Landlord has to forgo $4,800 in rent to receive $800 who would agree to that? Unless I'm misunderstanding it?
https://www.commerce.wa.gov.au/consumer-protection/residential-rent-relief-grant-scheme

 

Thanks for the link.

I agree, whilst I initially thought it was a good thing for landlords, it doesn't seem this way.
To apply you need to have reduced the rent, NOT have a reasonable repayment plan in place.
There is no guarantee you will get the rent relief even if you reduce the rent, as there is a lot more eligibility requirements.
Once you do reduce the rent, its going to be hard to increase it again, even after the emergency period is over.


It is good for landlords who have already reduced the rent to get some back, but I wouldn't be reducing rent to try and get the relief, even if already on a repayment plan.

 

Actually, re-reading it further it does look like a rental debt is eligible.

That makes the grant a lot more favourable.

 

The Bill is now an Act
Western Australian Legislation - Residential Tenancies (COVID-19 Response) Act 2020

some differences, not 100% sure of my interpretation
s14 (4)-(7)
cannot make a submission to the commissioner if cannot agree on a rent repayment agreement.
Removed the bit a about a rent default notice after 3 months after the emergency period, which was worrying to me.

s19 looks more in favour of landlord,
consequences on the tenant if they don't enter into a rent repayment agreement or fail to meet the rent repayment agreement.
also looks like you can't not pay rent due to non covid19 reasons.

Division 3 — Mandatory conciliation, removed

 

Jamie from Empire Estate Agents was nice to share the two REIWA templates for Deferrals and Waivers

 

It actually says this:
”The grant is paid to the landlord and will be equivalent to four-weeks rent up to a maximum of $2000, whichever is the lesser.”
So it looks like it’s not the amount it’s reduced by, but rather, it’s based on 4 weeks worth of rent.

That aside, I’m still confused by the whole scheme. If anyone here understands it well, please share!

 

From what I interpret, you don't even need to reduce rent, but can defer it as well.

and the rental relief will cover the deferred amount up to max 4 weeks rent or $2,000.

So if you defer 50% of the rent, it will cover you to an equivalent of 8 weeks.

 

Hard to believe its 6 months later.

What are peoples thoughts, will the emergency period be extended?
(currently ends 29 September 2020)

 

I hope not, logic says it should not be extended???

 

I've heard through my government contacts that it will be in some form. Likely to be watered down though.

 

As long as the blanket ban on rent increases and automatic lease renewal is done away with (hopefully in favour of measures specific only to those in financial hardship) then I think that will be a sensible outcome.