Send rent reductions straight to tribunal: REIV

The Real Estate Institute of Victoria is attempting to flood the system after the ban on evictions was extended.

Victoria’s ban on evictions was last month extended until the end of the year.

The Real Estate Institute of Victoria has instructed its members to direct all rent negotiations to the state’s disputes tribunal in an attempt to flood the system after the Andrew’s government extended the ban on evictions.

In a statement released on Sunday, the representative body advised its members to refuse to negotiate rent reductions and instead refer all requests to the Victorian Civil and Administrative Tribunal (VCAT), a system the REIV openly acknowledged is already struggling to meet the current caseload.

The state government's decision in August to extend the ban on tenant evictions for a further six months to December 31 in light of the lockdowns last week has drawn the ire of the Institute, which argues landlords are facing financial stress from rental loss with little support available.

REIV chief executive Gil King said tenants hold the power in the current arrangements.

“Until balance and commonsense is restored we will embark on a moratorium-strike,” Mr King said.

“Let’s see how the system copes without our co-operation.”

“This demagogue decision to extend the moratorium means that for a whole year, landlords will be dictated to as how much rent they can charge removing their right to make fundamental decisions about their own property.”

An REIV survey of property managers conducted found that about three quarters of reduced rent agreements have been achieved outside of the dispute system.

A nationwide plan targeting the rental system was announced by the federal government in March as the first wave of COVID-19 case numbers rose, which included an eviction “moratorium”. Each state was tasked with implementing its own procedures.

In Victoria, property owners and tenants are expected to sign formal agreements to allow rent reductions, with more than 32,000 such agreements already lodged. As the initial deadline for the wrapping up of the scheme approaches this month, the REIV anticipates a new wave of tenants looking to renegotiate rental payments.

Tenants Victoria CEO Jennifer Beveridge said she was disappointed in the real estate agent’s lobby’s direction given negotiations are meant to be conducted in “good faith”.

“The scheme we have to seek a rent reduction in Victoria relies on what is known as ‘good faith’ negotiations, that’s a fair system to assist both renters and landlords amid the challenge we are facing as a community in the pandemic,” Mr Beveridge said.

“At a time when all of us are being told to stay at home, renters who‘ve lost income and jobs are doing it tough.’

Ms Beveridge added that under the state’s scheme, landlords are compensated with land tax concessions and the renter hardship relief grant, valued up to $3000 and paid directly to the landlord.

REIV president Leah Calnan said the government system designed to shoulder responsibility onto tenants is not working.

“These decisions compound the financial stress on Victorians and the Victorian economy and do nothing to help those suffering during these difficult times,” she said.

The Institute has previously stated instances of tenants “rorting the system,” asking for unfounded reductions in rent or engaging in “rent-strikes”.