Coronavirus: Landlords show struggling home renters little mercy

Jobless residential tenants struggling to pay their rent are being told by landlords to seek relief elsewhere and not from them.

Miguel and Edward Bernardo face eviction. Picture: Aaron Francis

When Melbourne chef Miguel Bernardo lost his job a couple of weeks ago after the cafe he worked in shut due to COVID-19 restrictions, his thoughts turned to how to pay the rent on the unit he shared with his eight-year-old son, Edward.

Mr Bernardo, 43, was initially comforted by what he’d heard from state and federal politicians about a moratorium on evictions and reasonable negotiation between­ landlords, tenants and banks to share the burden.

But what he’s experienced is a far cry from this nirvana of co-­operation. “I contacted my agent and told them my situation and asked what they were doing about cases like mine,” Mr Bernardo told The Australian. “I suggested the landlord consider a 50 per cent ­discount on my rent until I got ­another job, if the landlord could get some support from the bank.

“The answer I received was something they seem to be sending to all tenants, that they want to work with us, but to keep paying the rent or we will evict you. They also said we should seek all possible­ supports we can first, and directed us to Centrelink to seek rental support and to an emergency homeless service.

“This was pretty confronting to receive. I just wanted to negotiate a way through this.

Mr Bernardo is Portuguese, but has been in Australia nine years and is a permanent resident. This is the first time he has been without regular work. He has received financial assistance from homelessness support group Launch Housing to stay in his unit for the next month, but knows this is little more than a short-term fix.

“We are taking so many more calls than normal,” Launch Housing chief executive officer Bevan Warner said. “This is a health crisis that has become an economic crisis that has become a social crisis.

“The Prime Minister has said everyone needs to take a share of the burden, and if we do it in an even-handed way the economy has the best chance. We can’t let too many people fall through the floor while this economic crisis happens. Landlords have had record­ low interest rates, they’ve had banks offering deferrals.”

Government policy around residential tenancy remains un­resolved. National cabinet this week outlined a specific regimen for commercial tenancies but Scott Morrison said the states would make their own rules around residential tenancies.

One policy floated in Victoria and NSW is to give landlords some discount or waiver of land tax, in exchange for rental relief for their tenants, but as yet no formal announce­ments have been made.

There are also reports from property managers that tenants are using the uncertainty as an excus­e not to pay rent even when they are not financially impacted by COVID-19.

Anglicare Australia executive director Kasy Chambers said renters were on the frontline of the national­ economic downturn, and were unclear about their legal position when they lost their jobs.

“Last week’s moratorium on evictions was a good start, but it’s also left many people confused,’’ Ms Chambers said. “Renters can’t be evicted because of financial stress, but in most of Australi­a they can still be evicted for no reason at all. We’re already seeing stories from the frontline of people being evicted with nowhere to go.

“State and territory leaders have now agreed to rent relief for commercial tenants, helping them avoid a debt trap. Residential renters trying to keep a roof over their heads deserve the same respect.”