Antonia Mercorella tackles questions on new tenancy rules

The eviction moratorium announced by the PM in March was supposed to give struggling tenants certainty. Real estate expert Antonia Mercorella explains why it hasn’t been that simple.

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When Scott Morrison declared a moratorium on evictions for tenants financially hit by COVID-19 it left both landlords and renters with more questions than answers.

We asked Antonia Mercorella, CEO of the Real Estate Institute of Queensland, for help understanding the situation across the country as it stands now.

REIQ CEO Antonia Mercorella. Picture: Supplied

Q. The Prime Minister declared the eviction ban in March, why is there still so much uncertainty around what that means? It’s not fair on landlords or tenants.

A. It’s understandable that many people are feeling anxious at this time due to the lack of clarity. However, the Federal Government is not able to pass special reform measures through parliament for residential tenancies. It is up to the individual State and Territory Governments across Australia. While some jurisdictions have already enacted special measures to provide much-needed clarity within a timely manner, those yet to enact such reforms are not far off, meaning both tenants and landlords across the entire country will shortly have clarity on this issue. For those living in Queensland, laws will be introduced on 22 April; for ACT, measures are already in place that currently link financial relief to landlords who reduce rents for their tenants. WA has placed a six-month stop on evictions and rent increases in the interim. The NT Government still hasn’t provided any indication of when it will introduce special measures at this time.

Q. I’m reliant on the rent from my rental property for my own living expenses. What help is available to me if the tenant stops paying?

A. It’s important to check what the relevant provisions are for where you live as they do differ slightly across each State and Territory where special measures are currently in place. This includes NSW, Victoria, South Australia and Tasmania. Information is also available for those States and Territories yet to pass measures through parliament including Queensland, ACT, Western Australia and NT.

Q. If the tenant is given a rent reprieve, do I still have the same rights to inspect my property?

A. Again, it’s important to check the specific measures already introduced within your jurisdiction for clear guidance on the types of permissible property access which will cover essential repairs and maintenance and for the sale of a property. Wherever you are it will be necessary to observe strict health guidelines for gatherings, social distancing and hygiene. Access for routine inspections during the COVID-19 period will generally be limited to virtual inspections only.

Q. I’ve heard talk of tenants who can pay planning to go on a rental strike anyway. What is being done to ensure people are genuinely in need?

A. State and Territory Governments have (and will have) protective measures in place to ensure only genuine cases of financial hardship as a direct result of COVID-19 will be eligible for any assistance. The requirement of evidence-based documentation is obligatory for any applications to be considered and a temporary rent reduction agreed to between a landlord and tenant. Anyone attempting to submit a false application will be subject to all existing tenancy laws in place within their jurisdiction and referred on to the relevant tribunal.

Q. I want to sell my investment property, which has a tenant at the moment. Can I give my tenant notice in this situation?

A. The Prime Minister’s no eviction moratorium means a tenant cannot be evicted from a property if they are directly affected by the COVID-19 pandemic. If a landlord needs to sell their property during the no eviction moratorium, it’s important to check the special reform measures within your state or territory to understand the correct process.

Q. What is your advice for tenants who find themselves unable to pay the rent? What are the first steps they should take?

A. Communication is key. By establishing open communication as early as possible with their property manager and/or landlord, it will allow both parties to better negotiate in good faith towards a shared beneficial outcome that can be achieved. Renters should also check what assistance supplements are available to them at this time both from the Federal Government and their State Government.

Q. Do you think there will be long-term implications of this crisis on the relationship between tenants and landlords and how that is legislated around the country?

A. There are no indications that there will be any long-term implications between tenants and landlords. This is a ‘once-in-100 year’ crisis that we have all had to readily adapt to within an extremely short amount of time and operate within extremely unique circumstances. If anything, the relationship between tenants and landlords is likely to improve because this pandemic is affecting all of us, and we are all working together to fight it.

Originally published as Antonia Mercorella tackles questions on new tenancy rules