Commercial and residential tenants demand detail on newly announced support measures
The Federal Government is urging tenants and landlords to sit down and work together to survive the coronavirus crisis. But some tenants say all they can do is keep trading at a loss until the owner knows exactly what assistance they’ll receive.
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Residential and commercial tenants are eagerly awaiting more clarity and detail on the Federal Government’s latest support measures as the impact of the coronavirus crisis deepens.
Prime Minister Scott Morrison announced on Sunday a six-month moratorium on evictions of tenants experiencing financial distress, together with a “common set of principles” endorsed by state Treasurers.
However, as they await details of a third stimulus package expected in the coming days, local landlords and tenants are already taking steps to protect their livelihoods.
Sean and Karen Farrell, who have run a newsagent in the Myer Centre for 13 years, are among more than 20 tenants in the centre who have written to landlord - Starhill Global REIT - seeking rental assistance.
Mr Farrell said trade was currently down around 90 per cent on normal conditions.
“We’re keeping the doors open to do the right thing - we want to support the landlord,” he said.
“They’re waiting on what sort of government assistance they’re going to get before they decide what they’re going to do for the tenants.
“Long term for them, if there’s no help forthcoming they’ll have an empty centre for five years.
“We’ll continue to trade until the Government says we’re going into shutdown, but we’re trading at a loss - this is our livelihood.”
While landlords have been urged to engage with their tenants and share some of the pain caused by the coronavirus, the Prime Minister has also flagged that further tax relief could be on its way for property owners.
Property Council SA executive director Daniel Gannon said that would allow landlords to pass on benefits to tenants.
“Landlords are invested in the survival and long-term profitability of their tenants, which is why commercial rate and land tax relief is necessary to allow landlords to cover their own liabilities and support their tenants,” he said.
Prominent Adelaide property owner Harry Perks, who oversees a shopping centre portfolio comprising more than 500 retailers, said rent-free periods had already been extended to several tenants, but it was on a case-by-case basis.
“At the end of the day we have to work with tenants so that they can come out the other side - because there’s nothing worse than an empty shopping centre,” he said.
“The owners are taking a big hit - what we’re trying to do is get enough just to pay the interest on our loans, survive and get through this.”
Meanwhile, local residential agents are also seeking more detail on the moratorium announcement.
Harris Real Estate property management director John Carey said it was a “matter of urgency” that they get clarification on the new rules.
“We don’t know what assistance the tenants have got, which is making it extremely difficult,” he said.
“We’re really telling them to wait for further government announcements, which is hopefully imminent.
“There should be pressure on the government not to take too long on this.”
Ouwens Casserly Property Management general manager Adam Blight said he was being inundated with calls from concerned tenants and landlords.
“At this stage, we’re just telling them to hold on until we’ve got more guidance,” he said.
A spokesman for Consumer and Business Services said the State Government was drafting amendments to ensure the swift adoption of any rent relief or other support measures announced in the next round of stimulus.