Darling Downs REIQ zone chair welcomes rental reforms

THE new COVID-19 regulations for renters and landlords provide a "balanced outcome" for all.

REIQ welcomes new rental reforms.

THE new COVID-19 regulations for renters and landlords provide a "balanced outcome" for all, according to Real Estate Institute of Queensland Toowoomba/Darling Downs zone chair Katie Knight. 

Mrs Knight's comments come off the back of a difficult few days for the State Government, after widespread condemnation of draft regulations it announced last week.

There was concern among the real estate industry and landlords that the draft regulations put too much power into the hands of tenants, at the expense of landlords. 

"It's been difficult for us to move forward while we've been waiting for some guidelines," Mrs Knight said. 

"Most reasonable landlords, property managers and tenants had been doing their best to negotiate.

"But having a clearly defined threshold (for people to be considered impacted by COVID-19) allows us to move forward with some confidence and provide some helpful information to tenants." 

Among the important changes from the draft regulations are that a landlord is now able to eventually recover any rent from a rent reduction, there is now clarity around entry provisions, and tenants will be required to participate in a virtual inspection, if necessary, Mrs Knight said. 

The threshold for a tenant to break a lease has also been increased to a loss of 75% of household income, she said. 

Toowoomba North MP Trevor Watts said it was a hard-fought campaign to ensure the temporary measures, which passed through the Queensland Parliament this week, acknowledged the indiscriminate impact of COVID-19.

"I understand every part of the rental market is hurting right now," Mr Watts said. 

"It shouldn't be up to a property owner, tenant or real estate agent to single-handedly carry the financial burden of this pandemic. 

"That's why I've been consistently advocating for measures that protect tenants, while also preserving the rights of property owners and their discretionary control over their own properties.

"Most property owners, tenants and real estate agents are very reasonable people and under the current circumstances, they're willing to work together to negotiate a fair outcome. 

"However, there are circumstances where all or some parties do not act in good faith, which is why it's essential to have a comprehensive and fair legislative framework that protects the interests of the entire rental market, not just one segment."

Here is a complete breakdown of the new guidelines:

● A tenant is considered impacted by COVID-19 if they have it, care for someone who has it or are subject to a quarantine direction and suffer a loss of income of 25 per cent or more, or rent payable is 30% or more of their income.

● Tenants are required to provide upon request documents to show they are impacted by COVID-19, which include proof of job termination/stand down, government income support, a medical certificate and prior income.

● Tenants and landlords are encouraged to agree on solutions together and if they can't, they must use the Residential Tenancy Authority's conciliation service.

● It will be mandatory to go to conciliation for rent variation, ending agreements or gaining entry to properties for repairs and maintenance.

● If conciliation is unsuccessful, they can go to the Queensland Civil Administrative Tribunal (QCAT). In the interim, the tenant must keep paying the required rent or "as much as they can afford".

● The tenant must notify the property owner is there is a change in circumstance, regardless of whether there is an increase or a decrease in the total household income.

● If a property owner is reliant on rental income to meet essential costs of living, they should raise the concerns during conciliation with their tenants and the owner may have to provide evidence to support their position.

● Landlords and tenants should discuss the duration the new rent amount applies for and when it will be reviewed.

● The tenant can ask the lessor for the rent amount to be reviewed at any time during the agreed variation to rent if the household's circumstances change.

● The owner must give two months' notice to sell the home, or if they or immediate family need to move in.

● Tenants experiencing domestic and family violence can end their tenancy agreement with seven days' notice.

● Fixed term agreements due to expire during the pandemic will be extended until September 30, or unless the tenant requests a shorter term.

● Tenants may also refuse physical entry for non-essential reasons, including routine repairs and inspections. But, tenants must agree to virtual inspections if physical inspections cannot take place.

Originally published as Darling Downs REIQ zone chair welcomes rental reforms