Concerns raised over rental plan

BUNDABERG landlords are being encouraged to voice their concerns over the State Government’s coronavirus package for renters.

Bundaberg landlords are being encouraged to voice their concerns over the State Government’s coronavirus package for renters.

BUNDABERG landlords are being encouraged to voice their concerns over the State Government’s coronavirus package for renters.

The package includes a permanent rent waiver for tenants and allows lease extensions of up to 12 months.

A campaign, Everybody Matters, has been launched by the Real Estate Institute of Queensland, to let property owners have their say.

REIQ Bundaberg zone chairwoman Le-Anne Allan said the organisation was seeking a more balanced framework that provided protection for both parties.

“Certainly from a local perspective, this matter before the special COVID-19 State Government package announcement greatly concerns the REIQ, local real estate agencies and property investment owners,” Ms Allan said.

“This proposed package ignores property owners, does not give owners a voice and eliminates basic fundamental rights.”

Housing Minister Mick de Brenni said the purpose of the moratorium was to sustain tenancies during the COVID-19 pandemic period as this was the best possible outcome for owners, property managers and tenants.

He said clarifications to the framework would be addressed through consultation and with a strong expectation banks will continue to offer help to property owners.

Remax Precision Bundaberg owner Scott Mackey said he believed the Federal Government outlined a framework that was fair for both tenants and landowners.

“The State Government has skewed it completely and you’re going to see this heavily affect people’s financial security,” Mr Mackey said.

“There will be some people in Bundaberg who own one or two investment properties and rely on that as a source of income, so there’s got to be a fair balance.”

Raine and Horne Bundaberg owner-principal Josh Rub said while the State Government’s proposal may help some tenants, it would be detrimental for many property owners.

“Plenty of government support is out there and if you lose your job, there is the job seekers allowance which will cover rental payments for most tenants,” Mr Rub said.

“If you look at Maslow’s law (hierarchy of needs), food, water and shelter are our fundamental needs, but if you put one person’s needs over others, it will cause a massive issue and we need to find a more equal and balanced approach.”

REIQ CEO Antonia Mercorella said the organisation supported the Federal Government’s six-month eviction ban but not the state’s plan.

“This package is solely protecting the tenants, not just in terms of an eviction but also protecting them from having to pay the full rent, allows them to break-leases and also allows tenants to refuse entry,” Ms Mercorella said.

“I believe its due to a mistaken perception that people who own an investment property are wealthy, but a lot of investors are our mums and dads, nurses, teachers, tradespeople – who have made sacrifices to own and pay off that property.”

Ms Mercorella said the package would reduce confidence in the real estate market, make investment less appealing and ultimately affect property prices.

She said property owners would still face financial obligations, such as mortgage repayments, interest rates, council rates, body corporate fees, water supply and maintenance costs.

Mr de Brenni said the framework does not advocate for a permanent reduction in rent.

“It is plain wrong to say that our framework allows tenants to unilaterally demand a rent reduction, or leave the property without first proving they have lost their job and are in significant hardship,” Mr de Brenni said.

“Tenants affected by income loss due to coronavirus can apply for Commonwealth income support and ask to negotiate a temporary and fair rent reduction, which will be supported by an independent conciliation process to ensure that no party gets ripped off.

“Coronavirus-affected tenants must be able to provide proof, but detailed personal information needs only to be provided to the Residential Tenancies Authority.”

Mr De Brenni said the system ensured there was complete clarity around the terms and duration of any temporary arrangements.

“Additionally, an increased set of grounds upon which a property owner can take back their property have been proposed, which include the need to move in, the need to sell the property, damage to the property or anti-social behaviour that breaches the rental agreement,” he said.

Mr de Brenni said the framework, which was published on April 9, outlines a temporary and targeted package, with guidelines to address substantiating loss of income, eligibility for the framework and duration of application of the framework.

Click here to have your say. Submissions close on April 22.

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