Renting and Coronavirus: What You Need to Know
As of 2019, 32 per cent of Australia’s population are renting. Because of the threat of COVID-19, there are a lot of uncertainties tenants and landlords are facing now. Here are some of the questions and concerns we have heard lately.
Tenant Questions
I can’t move in because of COVID-19. What should I do?
You should speak to your landlord or property manager as soon as possible. If you can’t proceed with the lease, you can ask for a refund if you have paid rent in advance. However, refunds are at the discretion of the landlord/property manager. The government has a cap on break lease penalties as a part of the freeze on evictions.
I need to move in but I can’t afford the rent advance or the bond. Is there help available?
There is a new eligibility criteria for bond loans and expanded access for rental grants for those experiencing financial difficulties because of COVID-19. Click here for more information.
What if I can’t pay my rent because of COVID-19? Will I be evicted?
If you have trouble or you think you might have trouble paying rent, let your landlord or property manager know as soon as possible. Ideally, you should agree on new terms during this difficult time—all of these should be put in writing. Use the RTA’s General Tenancy COVID-19 special terms form.
If you can’t come to an agreement with your landlord/property manager, you should register for conciliation through the RTA immediately.
Since there is a freeze on evictions right now, you can’t be evicted because of difficulties brought by COVID-19.
If you lost your job because of the crisis, make sure to apply to Centrelink for the COVID-19 income support.
I am under extreme hardship and want to break my lease. What should I do?
Speak to your landlord/manager as soon as possible. Agree on a plan on how to manage the end of lease process that works for the both of you. Also, you must be able to demonstrate your financial difficulties due to COVID-19. If you still have unpaid rent before this, you still need to pay that amount.
Break lease is capped on the equivalent of one week rent during the pandemic, after you give the required notice period.
If the negotiations between you and the landlord/agent are not going well, contact the RTA to arrange conciliation.
I got a notice to leave. Do I have to leave?
You can’t be evicted due to financial difficulties caused by the pandemic. If you received a notice to leave because of COVID-19 related reasons, you should contact the landlord/manager so you can manage the issue.
However, there are other approved reasons for ending a tenancy such as a serious breach unremedied by the tenant or if the property is being sold. Check the full list here.
Should I let my landlord/property manager know if I’m in self-isolation?
Yes, you should, especially if they have plans to visit or enter the premises. You should also make sure to let any other tenants or visitors know your situation.
What are some resources I can go to?
Talk to the Residential Tenancies Authority if you need help with tenancy. Here are some ways to contact them:
- Text “Hi” to 0480 000 782
- Call the RTA’s information hotline on 1800 497 161. They are available from 8am to 8pm, Monday to Friday, or from 9am to 5pm, Saturday and Sunday.
- You can also visit the Residential Tenancies Authority website.
Landlord Questions
Can I still continue holding inspections for sale and for lease?
You may, but ensure that you take the comfort and privacy of your tenants into consideration, especially during a time like this. Here are some things you can do:
- Adhere to the government’s announcements regarding holding open homes.
- Limit the number of people inside the property. Ensure that they maintain safe distances.
- Consider doing virtual inspections.
- Ask every person wanting to do an inspection of their travel history outside Australia and they have flu-like symptoms. If the answer is yes, tell them they can’t enter the property until they have self-isolated for 14 days or have a COVID-19 test come out negative.
- Provide hand sanitiser to all the people entering the property and ensure that they use it.
- Make sure no one touches any appliance, fixtures, or fittings in the property.
My new tenant, who signed a lease, can’t move in. What should I do?
Make sure that you reach an agreement that works for the both of you. You may want to negotiate delaying the tenancy until the current situation improves. If the new tenant has paid rent in advance, they might request a refund. The amount of refund is at your discretion. Keep in mind that the government announced a cap a break lease penalties, as a part of the freeze on evictions.
If you and your tenant are unable to reach an agreement, reach out to the RTA for conciliation.
My investment property’s mortgage is in arrears. Is there any help available?
First, talk to your financial institution, they may have a mortgage relief ready for their clients.
Aside from that, the Queensland Government is offering land tax incentive to property owners. For more information about this, click here.
My tenants were already behind with their rent even before the pandemic.
There is a freeze on evictions if rent arrears are because of financial difficulties caused by COVID-19. However, if the arrears are before the pandemic and are not caused by financial hardship because of the pandemic, you should follow the normal processes for rent arrears.
My tenant can’t pay the rent anymore. I need the money. What happens now?
Communicate openly with your tenant and understand each other’s circumstances, as you are both affected by the same thing. This will help minimise tension and work a way forward that works for the both of you. Here are some things you can do:
- Talk to them as soon as possible. Keep communication lines open, as the situation can change quickly.
- Consider the situation your tenant will be in when the pandemic dies down.
- Be reasonable when you consider requests for rent adjustments. Remember: maintaining a good, long-term relationship with tenants is better than constantly looking for new tenants.
- You can ask your tenant for evidence of reduced income, to demonstrate financial difficulties because of the pandemic. However, you can’t ask for copies of their bank statements.
- Do your best to come to an agreement and be clear about expectations on the amount of the new rent. Put this agreement in writing through this form.
If you can’t reach an agreement with your tenant, request a conciliation with the RTA.
For more information about financial support by the government, click here.
This pandemic is a time where we can band together and help each other. We are all going through the same crisis and should do our best to understand each other’s circumstances. Stay safe and healthy! If you have any more concerns or questions, don’t hesitate to message us.
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