State Government needs a serious rental relief package that benefits both tenants and landlords

That a stand-off between landlords and tenants exists is no surprise during the coronavirus lockdown, so why is the State Government dithering around with a serious rescue package and banks not coming to the party, writes Kylie Lang.

MUM and dad investors are getting smashed while the State Government dithers about rental relief.

Landlords are not all fat cat property moguls – they’re families trying to get ahead, just like their tenants.

And the longer the Government holds out on delivering a clear response to the COVID-19 induced rental debacle, the more struggling Queenslanders will suffer.

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Deputy Premier Jackie Trad claimed on Thursday she had not seen draft legislation on rental protections due to go before parliament next week. Either she was telling porkies, or the legislation is very low priority.

Treasurer Jackie Trad says she hasn’t seen the draft legislation on rental protections. Picture: Anna Rogers

Housing Minister Mick de Brenni responded on Friday to understandable public outcry over such flippancy, saying he had a “framework” in mind, yet didn’t divulge specifics.

Meanwhile, investors are left hanging – potentially out to dry if forced to give rent relief to tenants with no hope of recouping their losses.

Tenants, too, are in limbo, many failing, through no fault of their own, to pay for the roof over their heads.

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A stalemate between landlords and tenants in these unprecedented times is hardly a surprise, so why is the Government stalling on a rescue package?

Landlords with the ability to absorb some of the pain should do so – there are big hitters in the property game who could take a short-term slug and barely flinch.

As for small-time investors – like friends of mine with three kids; he’s a teacher, she’s a nurse pushed to the COVID-19 frontline – why should they be financially crucified?

What about self-funded retirees, who’ve paid taxes all their lives and have come to rely on a steady stream of rental income?

It’s a given that every Queenslander will be affected by the coronavirus pandemic, some worse than others, but the Government needs to stop waffling and deliver a plan.

The Courier-Mail readers are fired up, divided over who should pay and how.

One says property investors are “a protected breed, I have no sympathy for them”.

Another asks: “Since when has it become the property owner’s responsibility to look after the welfare of others? I would have thought this was the responsibility of the Government. The renters have signed a contract. If they can’t honour that then it is up to them to get out or ask for help to fulfil that contract.”

The Queensland Government has promised to consult more widely on its proposed rental protections that would ban...

Posted by Courier Mail on Thursday, 16 April 2020

The bulk of the anger, however, is directed at a government that, as one reader says, has made “a complete mess” and has no interest in cleaning it up.

You can’t tell me the COVID-19 Rental Grant is achieving much. Available only to those without other financial assistance, the one-off payment (a maximum of $2000, to the lessor) is for four weeks at most. What then?

How about a serious rental relief package, akin to the federal JobKeeper scheme?

Pressure banks to freeze payments on mortgages and loans until the crisis is over. It’s not as if they can’t afford it.

Brisbane real estate agent Amanda Butler has spent the past week playing mediator between landlords and tenants as the economic effects of lockdown and job cuts bite.

And with JobKeeper payments not kicking in until May, the worst is to come.

Mrs Butler wants an immediate and clear policy on rental relief that details how lost income will be repaid to landlords when the crisis ends.

“At the moment, I’m relying on trust and goodwill – that tenants seeking rent reductions are being honest about their situation, because the Government says they only have to provide proof of hardship to the Rental Tenancies Association, which real estate agents can’t access.”

Mrs Butler says the best outcome is for tenants to stay in properties, and if this means landlords agreeing for a time on a lower rent they should seek help from their insurance companies and banks.

Ultimately, the buck stops with the Government to help people “manage through this”.

She predicts the current rental fiasco could be a watershed moment for the State Government come the October 31 election, as negative gearing was federally for Bill Shorten last year.

No arguments there.

Shelter is a basic human need – not a privilege that should be provided to some and not others – and the Palaszczuk Government should recognise this, prioritise it and do its job.