Cancel COVID rental debt amid eviction fears: Better Renting
State governments should take on “all rental debt” accrued during the pandemic, a tenancy advocacy group says.
State governments are being urged to “cancel all rental debt” accrued during the pandemic, as a new report claims tens of thousands of Victorians could be at risk of “COVID evictions” due to arrears after the moratorium ends in March.
Tenancy advocacy group Better Renting reviewed a range of research — including a recent Australian Housing and Urban Research Institute survey of 15,000 renters — to estimate between 5 and 15 per cent of rental households nationwide were in debt or facing debt.
When applied to the 1.68m Victorians who rent, according to the Australian Bureau of Statistics, this equated to between 84,000 and 251,000 people.
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The report speculates many of these Victorians could be forced to vacate their homes “if their landlords are able to kick them out for COVID-related rental debt” next year.
Better Renting executive director Joel Dignam has accordingly urged the Victorian Government — and Australia’s other state and territory governments — to “acquire this debt from landlords and write it off to free renters from the risk of COVID evictions”.
“It’s unfair to leave renters to repay debts, it’s going to lead to people losing their homes,” he said.
Victoria’s evictions moratorium — which Mr Dignam dubbed “an important part of the (pandemic) response” — is due to expire on March 28.
It was introduced alongside a ban on rent hikes and a framework for tenants to negotiate rent reductions and deferrals to support those in COVID-related hardship. About 60,000 rent reduction agreements have been registered with Consumer Affairs Victoria.
Victorian government spokeswoman Stephanie Jones said to ensure tenants and landlords felt “comfortable in their rental arrangements now and into the future, … we will be looking closely at opportunities to ensure a smooth transition out of the eviction moratorium and into the (introduction of) rental reforms”.
The 130 reforms include the abolition of no-reason evictions, and a requirement that the Victorian Civil and Administrative Tribunal only be able to issue orders requiring a renter to vacate in circumstances deemed reasonable.
A new process for repeated late or non-payments of rent will also ensure tenants in financial distress can only be evicted in fair circumstances.
The Better Renting report drew on data from AHURI, the ANU Centre for Social Research, the University of New South Wales, the Consumer Policy Research Centre and the Reserve Bank of Australia to estimate 5 per cent of the nation’s tenants had negotiated rent deferrals.
“As these deferrals come due or renters are unable to keep up with repayments, this debt may become a grounds for eviction,” the report states.
Tenants who had avoided rental arrears by accruing debt elsewhere, and those who almost depleted their financial reserves to dodge debt so far made up a further 10 per cent also potentially at risk of losing their homes.
“Our concern is there will be formal evictions through tribunals, but that renters will also find themselves pressured by landlords to vacate,” Mr Dignam said.
He advised tenants concerned about being in rental arrears to contact Tenants Victoria and CAV for support and advice.
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Originally published as Cancel COVID rental debt amid eviction fears: Better Renting