We have already updated our clients via e-news about crucial and measured changes that our agency has made to support our clients to self-isolate and for all to be safe and protected.  In the e-news we updated clients about specific strategies that we are implementing while continually monitoring any need for change or update with any new Stage upgrade by Government.  Additionally, with today's update e-news, we wanted to give tenants and lessors some support about what the industry and government is recommending or communicating when tenants and lessors may be experiencing difficulty with job loss or reduction of income.  

It is still not 'crystal clear' listening to the Prime Minister deliver again yesterday, all of the solutions to the escalating issues for everyone.  While subsidies are being offered through Centrelink to those who have lost jobs, relief of up to $1500 f/nightly in subsidies to small and medium business for employees, relief with pause on mortgages, advance in Superannuation, a Federal and State level moratorium of 6 months put in place for NO evictions to protect people in a vulnerable position.  As managers, we are yet to find out what this means and what the new procedures will be in respect of arrears procedures and legal procedures related to landlord insurance; these rules are still being written or may never be written.

Social media is, without question, making things very confusing about what to do in finding solutions, giving false expectations to all, particularly to tenants.  Simplifying what is not yet understood.  Therefore, it is important that lessors and tenants know that qualified agents still need to work within tenancy law, including any new changing laws, to support both tenant and lessors.  We must still follow industry procedures to ensure we are managing inside of the mandates, while managing best compromise between parties otherwise tenants and landlords rights and responsibilities are not met and insurance is not valid.   

With the advent of COVID-19, it is becoming increasingly apparent that this must become a time of compromise, a time of being kind and considerate and being open, transparent and as rational as possible, knowing there are not all the perfect answers with such extraneous issues.

Government is indecisive because these are unprecedented and challenging circumstances that no one has one set of rules that will apply to all, i.e. owners who have different budgets, incomes, expenses and tenants who have different levels of employment, configuration - number of incomes between co-tenants, visa permissions etc. People are upset, concerned and even frightened, and understandably so, as their security and well being are challenged with the advent of COVID-19.  There is too much uncertainty now about the fundamental need of having a secure home, about what to do about it and what the outcomes will be over the months and even longer term.

We property managers and agency owners now find ourselves on the front line to help and support if anyone is experiencing difficulty in such rapidly changing and unprecedented times with a 'muddy' sets of conditions which are still developing. We are also looking at ways we can help support as are many lessors; we are personally cutting our fees to support those lessors who have tenants who have lost work, offering our compromise to help all come to a solution for those who have already lost work. We are managing with no new specific set of rules provided by the overriding bodies for the rapid change as to how to 'pacify all' i.e. in line with the new moratorium - 6 months no evictions; where is the boundary for the Prime Minister's so called, 'those suffering significant difficulty'?   No one is sure yet.

So, we are left to manage by looking for compromise while weighing up and considering the rapidly changing extraneous issues, the individual circumstances of all parties and by balancing the current law.   This is very difficult.  To find most positive outcomes, we are seeking solutions by working as the conduit between both tenants and lessors and opening discussion if one or both parties are impacted to find compromise, in what the Prime Minister calls 'unchartered waters'.  We are utilising all the information that we can glean and research from our contacts, from industry bodies, from government, health leaders and using our trained expertise to support decisions of the lessors.

And, yes, if you find yourself impacted, you are certainly not alone!  We are already managing  a few tenants who are struggling; these tenants have contacted us to be very transparent.  These tenants to date are most generally those in the casual labour workforce and/or here from overseas with no safety net provided by Centrelink as would otherwise apply to locals.  Though, some owners are also losing their jobs or impacted financially and find themselves having to juggle their financial circumstances.  No one seems immune! 

It is very important to remember this, that as well as tenants owners are experiencing and suffering loss of work and extraneous hardship with the advent of COVID-19.   Not all owners are in a position to drastically decrease the rent if a tenant loses their work, and each individual tenancy needs to be assessed and discussed based on the individual circumstances for both tenant and lessors involved. At the end of the day,  only the lessor knows how much they can compromise if they can at all,  based on their own changing circumstances and will give us instructions accordingly after brainstorming. 

Despite all of this, rental payments will continue to be collected, under the current conditions of a tenants Residential Tenancy Agreement unless there is a lawfully changed agreement between owner and tenant after a discussion has been had.  Tenants are provided with a reminder that rent payments are an essential part of a tenancy and in most cases, without rental payments, the property owner is unable to afford the mortgage, rates notices and council levies to keep the tenancy active.

Where possible, we encourage tenants to continue with direct deposit via BPAY (details found within the lease agreement).   We assure tenants that the continuation of the rental payment flow, will enable the property owner to pay the required outgoings bills and mortgage, associated with the rental property/home.

We do understand that some households may experience times of hardship to some degree during this time - either immediately or in the future. Although we are empathic to the extraneous causes while owners are doing their best to compromise where they can, the government has still not made any concrete decisions about changes to tenancy law to assist a tenant or owner in distress, with exception the moratorium on evictions - 6 months. They are being proactive in offering those experiencing difficulty such relief as subsidies through Centrelink and adjustments to mortgage and super arrangement laws.

Therefore, we remind tenants at this point in time,  without a formally changed agreement and compromise by the owner with this new agreement formalised on the tenancy agreement, that non-payment of your rent can result in a Remedy Breach Notice and if rent is not paid within 7 days there may be consequences to this... which is required for landlord insurance purposes, this is an industry standard procedure. An agent is required to follow this process, a lawful and binding responsibility for the appointed agent, to ensure any claim for landlord insurance is not invalid if a tenant is in difficulty.  We encourage that before it reaches this point, we would welcome a discussion with you to find solutions.

From both a managerial and human element perspective, we'd like to help the best that we can, with ensuring that this does not escalate, that arrears do not build, and that if after all efforts are exhausted for normal payment, any compromise may be found between tenant and lessors and drawn up into the agreement formally.  Whilst we are not in a position to advise of a set strategy going forward with rapidly changing and escalating extraneous issues and with indecision of the government,  we encourage those of you experiencing loss of work or income, both tenants and lessors, in looking for solutions to call us if you need support in this, we are here to help you with further discussion between all parties concerned. We will look at each individually and fairly. 

First, seek advice first from your qualified and licensed financial advisor about any of the following:-

Have you had a discussion with your Employer as to whether your job is likely to be reinstated once the health crisis subsides?

Scott Morrison has announced a new scheme where government will subsidise the pay packets of low to middle income earners under the threat of being stood down because of COVID-19. Businesses will be paid up to $1,500 a fortnight for each employee, as part of a "job keeper allowance". Please contact your Employer to ask if they will be registering for this scheme. Details can be found by clicking on the below link.

https://7news.com.au/lifestyle/health-wellbeing/coronavirus-update-pm-scott-morrison-reveals-new-scheme-to-help-retain-workers-c-771814

Do you know that you can contact Department of Workplace Relations for guidance around employment during this time? More information can be found here: -

Are you covered via an insurance policy for Income Protection Insurance?

Have you engaged with MyGov/Centrelink with respect to an allowance which will likely also include rental assistance? We are hearing already that tenants who have lost their jobs have been successful in obtaining rental assistance inside of one week of losing the work.  More information can be found here.  

Funding is available for Queenslanders who have lost their job due to the impacts of COVID-19 and who DO NOT have access to other financial assistance. This grant is only available to Queenslanders who need it the most and have exhausted all other options.  The COVID-19 Rental Grant is a one-off payment of up to 4 weeks rent (maximum of $2000) available by the COVID-19 pandemic who do not have access to other financial assistance.

The grant is paid directly to your lessor. Before you apply you must have had a conversation with your lessor and be able to provide evidence that the lessor has declined all attempts for you to make a payment arrangement.

https://www.qld.gov.au/housing/renting/rent-assistance/bond-loan/covid19-rental-grant

If you have any mortgages or personal loans, have you checked with your financier as to whether you can pause payments due to hardship? Major banks are offering this adjustment. Please enquire with your banks, but alas!! Interest does increase after this period, we will send more information about this in furture e-news as it comes to hand. We have seen some interesting articles about this.

In summary, in the event that any tenants, and lessors for that matter, are affected by hardship, we recommend and invite you to contact us asap to discuss your current predicament and so we can look towards a strategy or strategies to resolve.  Please don't hesitate to contact me personally if you wish - 0431 997 339.  

We are here for you all.... happy to listen and work with all clients through any times of hardship, to help get us through together. I have had many owners expressing their concern for tenants at this time and likewise tenants concern and understanding for owners.  We are all impacted by COVID-19.

Stay safe and well! We will be here for you in any capacity that we can.

Sincerely

Lia Juriansz, Co-Principal | Co-owner 

Property Management and Sales, Robina Village Real Estate

m 0431 997339 | office. 07 5562 2522 | e. rentals@rvre.com.au