COVID-19 Information for Landlords and Property Owners

     

The current Coronavirus (or COVID-19) pandemic is causing unprecedented chaos to world health and the economy. It has led to uncertainty in the rental industry involving property owners, renters and agents. If you are involved in the rental industry we have suggested actions and points to consider here. Importantly:

   

The situation for Landlords and Renters, as for everyone else, can change rapidly and unexpectedly, please check back frequently to this page as well as other information sources. This page last updated 30 May 2020, with updated links to RTA forms and resources.

    

Impact to Tenancy Laws

    

On the 24 April 2020, the Residential Tenancies and Rooming Accommodation (COVID-19 Emergency Response) Regulation 2020  (COVID-19 Regulations) temporarily amends the Residential Tenancies and Rooming Accommodation Act 2008. The regulation will remain in place during the COVID-19 emergency period and will expire on 31 December 2020, as outlined in the COVID-19 Emergency Response Act 2020. The COVID-19 Regulations apply retrospectively from the 29 March 2020, the date the Prime Minister had announced a 6 month moratorium on eviction. The Measures will apply until  29 September 2020.

     

         

The COVID-19 Regulations relating to evictions and rent reductions to residential tenants apply where the tenant  suffers excessive hardship because of COVID-19 emergency. [see s 6] If any of the following apply:

  • they or someone they care for are afflicted by COVID-19
  • they are subject to a quarantine direction
  • a public health direction has closed their employment or restricted their employer’s trade or business, includes closing a major supplier or customer of their employer
  • they are self-isolating because are, or someone they live with, or are a primary carer for, a vulnerable person
  • they are unable to work because a travel restriction imposed under a public health direction prevents them from working or returning home
  • they have been prevented from leaving or returning to Australia

AND

The person suffers a loss of income of 25% or more OR The rent payable is 30% or more of a person’s income

           

Evictions

  • 6 month moratorium on eviction for residential tenancies where the tenant fails to pay rent because they are suffering excessive hardship because of the COVID-19 emergency [see s 8]
  • Evictions can still take place for other reasons or if a notice was given before 29 March 2020. Other reasons include:
    (a) Non-rent related breach by tenant - Same as before,see Section 280 of RTRA.
    (b) Premises being sold (2 months notice)
    (c) Owner Occupation (2 months notice)
    (d) Without Ground (2 months notice), but only if the tenant is NOT suffering excessive hardship because of the COVID-19 emergency
  • The definition of eviction is very broad in the COVID-19 Regulations, it now includes includes giving notices to leave and applying to tribunal, as well as coercing the tenant, providing false or misleading information, intimidation and preventing the tenant from access tot he property.
  • For fixed terms agreements that end before the 29 September 2020, the lessor must offer an extension to 30 September and on the same terms, if the tenant is suffering excessive hardship because of the COVID-19 emergency [see s 9]
  • A tenant must not have their details listed on a tenancy database foe failure to pay rent or ending an agreement if the tenant was suffering excessive hardship because of the COVID-19 emergency or complying with a public health direction [see s 46]
  • A tenant may also terminate the agreement for excessive hardship, but only after going to the Residential Tenancies Authority (RTA) for conciliation [see s 42].

    

Rent

             

  • If the tenant is at 7 days of unpaid rent, and is suffering excessive hardship because of the COVID-19 emergency, the lessor may give the tenant a show cause notice for the unpaid rent [see s 11]. The show cause notice must be in the prescribed form. See the Show cause notice for rent arrears - tenancy agreement (RTA) .
  • The tenant may, within 14 days
    (a) Pay the unpaid rent - Good
    (b) Do nothing - the lessor may give the tenant a notice to remedy breach.
    (c) Inform the lessor they are suffering excessive hardship because of the COVID-19 emergency - the lessor may request that the tenant enter into a tenancy variation agreement
  • A tenancy variation agreement includes a rent reduction for a stated period or a payment plan for unpaid rent [see s 13]. It must be in the prescribed form, See General tenancy COVID-19 variation agreement Form 18d (RTA).
  • If the lessor requests the tenant enter into a tenancy variation agreement, but are unable to agree, either party may seek conciliation with the RTA [see s 12]. The RTA has launched an Online COVID-19 Dispute resolution request, and COVID-19 dispute resolution request (Form 16a).
  • If the tenancy dispute is not resolved through conciliation, either party may seek arbitration with QCAT.
  • If a notice to remedy breach for unpaid rent is issued, followed by a notice to leave, and the tenant failed to leave, and an application is made to QCAT for a termination order, then QCAT will not grant the termination order if the tenant is suffering excessive hardship because of the COVID-19 emergency [see s 15]
  • If the lessor agrees to lower the rent in a tenancy variation agreement, the rental bond held does not need to be reduced.[see s 16]

         

Entry to premises - Inspections

   

  • Restrictions on entering premises apply if the lessor, agent or tenant (or someone at the premises) is subject to a quarantine direction, or entry contradicts a public health direction, or the tenant (or someone at the premises) is vulnerable [see s 17]
  • If the restrictions apply:
    (a) The lessor may NOT enter the property for: routine inspections, routine repairs or maintenance, inspection after routine repairs or maintenance, showing a prospective buyer or tenant, valuations, checking for abandonment, inspection to check a breach was remedied.
    (b) The lessor may enter the property if the tenant agrees or for: smoke alarms checks, emergencies, protection from imminent or further damage.
    (c) An agent or property manager can refuse to enter the premises if they believe restriction on entering premises apply.
    (d) The tenant must allow the lessor or agent to carry out the inspection by videoconferencing, access to photographs or video, or virtual inspection. [see s 18]

        

Entry to premises - Routine Repairs and Maintenance

         

  • The lessor is released from the obligation to carry out routine repairs and maintenance (whether or not a notice to remedy breach was issued) while [see s 19]
    (a) it is inconsistent public health direction or social distancing
    (b) it involves entry to the premises, but the lessor cannot enter because restrictions on entering premises (above) apply
    (c) a tradesperson or someone else required is not available
    (d) Supplies needed are not available

            

Domestic Violence

  

  • A new set of regulations to deal with the impact of domestic violence on a tenancy, and gives a tenant or co-tenants the right to leave [see COVID-19 Regulations Division 7]. It is likely these provisions will remain in some form after the COVID19 period.
  • If a tenant believes they can no longer safely continue to occupy premises because of domestic violence committed against the tenant, the tenant may end their interest in the residential tenancy agreement by giving the lessor a notice ending tenancy.
  • The notice ending tenancy
    (a) Must be supported by evidence, either as a copy or by allowing the lessor to view it.
    (b) Evidence could include protection order, injunction for personal protection or report from a doctor, solicitor or social worker (using a Domestic and Family Violence Report)
    (c) Needs to be in a prescribed form, the Notice is available from the RTA.
  • The lessor must inform the tenant whether the lessor intends to apply to the tribunal to set aside the notice.
  • The tenancy agreement ends when the tenant vacates, but at least 7 days after the lessor receives the notice.
  • Re-letting costs are not recoverable.
  • If other tenants remain, they must be given a notice informing them the vacating tenant agreement has ended, that the agreement continues, and that they will need to to-up the rental bond within one month

         

Financial assistance for Landlords

   

  • A New Rental Grant for households impacted by the COVID-19 pandemic. The COVID-19 Rental Grant is a one-off payment of up to 4 weeks rent (maximum of $2000) available to those affected by the COVID-19 pandemic who do not have access to other financial assistance. The grant is paid directly to your lessor. This grant is only available to Queenslanders who need it the most and have exhausted all other options. See https://www.qld.gov.au/housing/renting/rent-assistance/bond-loan/covid19-rental-grant/

  • Land Tax Relief has been announced by the Queensland Government for property owners, which must be passed on to tenants. It involves a three-month rebate of land tax for 2019-20, followed by a three month deferral of land tax 2020-21 for property owners who agree to provide rent relief for tenants. It applies to commercial or residential property owners and applications will be available from Tuesday 14 April. See https://www.qld.gov.au/environment/land/tax/covid-19 the Media Statement 9 April 2020 .  

  • Banks are offering limited support under existing financial hardship policies on a case-by-case basis, it includes deferring mortgage repayments and waiving some fees and charges. Landlords should contact their bank early if they are experiencing COVID-19 related hardship. Importantly, many banks are deferring but not waiving interest. If a deferral is granted, it means interest will accrue and compound, so the overall cost of the loan will increase and it will take longer to pay it off . The Australian Bankers Association provides an industry guideline fact sheet.

           

Insurance  

  

  • Check your landlords insurance policies for coverage and make sure your policy is paid up to date.
  • Rent default coverage can be subject to landlord or property manager following correct practices and procedures in the management of rent arrears. A breach or termination notice served for rent breach but not in a timely manner (due to leniency) may effect a claim, and the lost rent may exceed the amount you are insured for.
  • If you reduce rent or put rent on hold, by agreement, this may not be insurable event, so you may not be covered for the difference.

   

Resources and information - Government

     

            

Resources and information - Non Government

             

           

Any comments or suggestions for this page? Please let us know via Facebook or email qld@poaa.asn.au

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