With the COVID-19 outbreak raging across the world, many sectors need immediate help. One such industry that has been walloped is the housing sector, with tenants needing some attention from the government. Ask Trevor Holmes for more information.

We are all expected to stay inside our homes to stay safe. And to ensure that tenants continue to stay put in their leased home, the subject of residential tenancy support during COVID-19 is a pressing one.

Tenants could be struggling to pay rent month on month even as they grapple with budgets for essential supplies. With landlords themselves being dependent on the rentals accruing from their properties, any delinquencies on payments can upset their cash flows too.

A relief package of $440 million announced by the NSW State government promises to bring some much-needed relief to the rental sector that has seen COVID-19 safety measures disturbing daily life. This brings comfort to both tenants and landlords alike and helps tide over these times when restrictions are in place.

The COVID-19 fallout has seen people losing jobs and, in the absence of financial support, tenants have been one of the hardest hit. Those with a loss of 25% or more of their income can now avail of a six-month moratorium against any forced evictions in the event of non-payment of rentals. Such tenants will, also, not be marked as defaulters. Likewise, landlords who accommodate tenants who are unable to pay rents can avail of a 25% rebate on land tax.

To protect against forced evictions of tenants following rental arrears arising out of the COVID-19 scenario, there is a proposal to introduce an interim moratorium of 60 days for applications made to the NSW Civil and Administrative Tribunal. Where the tribunal is convinced that a negotiation has been duly done between the landlord and the tenant, the latter can avoid getting evicted.

Of course, tenants need to note that this is not a waiver or exemption of the rent due for the period. The rental amount that accrues will have to be paid eventually.

If you have impacted by the COVID-19 and have seen an income hit, here is what you need to do to stay protected by the new guidelines.

The eligibility criteria for tenancy support in the current situation are based on the following:

If you manage a household that has had to take a 25% or more decrease in the net monthly income, i.e. post-tax and after including any government assistance. This is also applicable if one or more of the working members of the family who pay the rent have their salary reduced or lose their job due to their employer having to close or shrink operations due to the COVID-19 impact.

Any earning member contributing to the rent gets ill due to COVID-19 and faces reduced working hours or discontinues work

Any such earning member who has to do carer duties for an afflicted family member and is unable to continue working or works reduced hours.

If a tenant falls into any of the above categories and has entered into a negotiation with his/her landlord regarding the reduction of rentals or postponement of payment.

If you are a resident of a registrable boarding house, you are entitled to a pre-eviction notice period of 90 days.

We are trying to make things easier for tenants and landlords in these difficult times. contact me for more information.