Tenants and landlords to rage rental war for months

Landlords and tenants have been at financial loggerheads for weeks and will continue to feel the fallout of the economy crisis caused by the coronavirus pandemic.

Window shopping on a desolate Hastings street in Noosa on Good Friday 2020, which would normally be teeming with thousands of Easter Holiday Makers. Photo Lachie Millard

LANDLORDS and tenants have been at financial loggerheads for weeks and will continue to feel the fallout of the economy crisis caused by the coronavirus.

Sajen Legal director Kyle Kimball said the coronavirus pandemic had led to rental tensions running high across the Sunshine Coast with many unable to reach a reasonable agreement.

Mr Kimball said a quick stroll through Sunshine Plaza, the Mooloolaba strip or Hastings St would be enough to show how far spread the damage had been.

He acknowledged that some landlords and tenants had "done the right thing" and found common ground, but many weren't.

"An agreement is supposed to be met in good faith, but that's not always happening," Mr Kimball said. "

"We are seeing some landlords not interested. Giving out a notice to pay up or they're terminating their leases.

"Then there are tenants who are saying they're simply not paying."

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As one of the Sunshine Coast's most experienced litigators, Mr Kimball said the mandatory code of conduct announced by Prime Minister Scott Morrison to help resolve the difficulties faced by landlords and tenants, "is anything but mandatory".

"It is yet to be passed into law by the Queensland parliament. So, right now, landlords and tenants have to rely on the goodwill of each other to resolve their issues, in circumstances where their contractual rights simply do not provide for this sort of emergency".

Mr Kimball said even if lockdown restrictions start to be eased, the virus has done damage that has no overnight fix.

"Having clear directions and guidelines from the government will help (with the negotiations), but we we're seeing an increase around November of too many struggling companies," he said.

"I don't think the ending of the crisis will bring an end to many of the problems. The impact on the economy is huge and damaging to confidence levels in general.

"It will go on for much longer."

"Some (businesses) won't survive and many were in trouble anyway. Coronavirus is just the final nail in the coffin for many businesses."

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