Real estate insiders worried about tenancy rule changes
Property insiders are concerned a fast-tracked amendment to Tasmania’s rental laws will intimidate investors, impacting the state’s already limited rental stock.
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A FAST-TRACKED amendment to Tasmania’s tenancy act has real estate industry groups concerned.
The Residential Tenancy Amendment (COVID-19) Bill 2020, enacted last Thursday will give the Premier the power to declare COVID-19 emergency periods and will continue to block landlords from evicting tenants in rent arrears.
Real Estate Institute of Tasmania president Mandy Welling says she is concerned the new laws will intimidate already cautious property investors and impact on the state’s limited rental stock.
”I’m looking at the train wreck that can happen on the back of this,” she said.
“What we shouldn’t forget in this discussion is that we have, and have had for some time, a rental property shortage across the state.
“The last thing we can afford is to frighten landlords more than they already are.”
Louise Elliott, president of the newly formed landlord advocacy group, Tasmanian Residential Rental Property Owners, said the ruling will have widespread unintended consequences to the private property investment.
“Because we don’t have a tribunal, we’re not in a strong position where tenants have to demonstrate hardship,’’ Mrs Elliott said.
“Sadly it’s a typical story. What the government should have done is make sure the residential tenancies were in a better place so that abuse didn’t happen.
The amended Section 43 (2a) of the Act states that a notice to vacate on the grounds of failure to pay rent is of no effect.
She believes the legislation was rushed through in the wake of a potential flurry of evictions if a second wave of the pandemic were to hit the state.
The amendment also includes a payment plan ruling, where tenants facing hardship can enter voluntarily into a payment plan.
“It’s skewed very heavily towards what the tenant can afford to pay and how it works for the tenant but it makes no mention on how needed this income is for the income owner,” Mrs Elliott said.
State government’s pandemic rental relief rules fail landlords Peter and Vanessa McKenna
Minister building and construction, Elise Archer said the financial support available to Tasmanian residential tenants and landlords is among the most generous in the country.
“I recognise the enormous challenges landlords have faced as a result of COVID-19 and that is why the COVID-19 Landlord Support Fund was created so that landlords with tenants in rent arrears can access up to $2000 from the Fund.”
To date the Department of Justice has received 147 applications for the COVID-19 Landlord Support Fund. Of these, 125 applications have been assessed and approved for a total payment of $181,292.40.
Minister Archer directs landlord experiencing financial hardship to contact consumer, building and occupational services.
She says the government will continue to monitor the situation and provide support where necessary.
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