Rent or No Rent?

In light of recent events, laws and regulations are being made like never before. COVID-19 has taken the world by a storm and disrupted livelihoods greatly. Unemployment and closed workplaces has caused great financial struggle for many. Rent is a major concern for tenants facing financial adversity. Scott Morrison’s government has taken the wise and applaudable action to put a 6 month moratorium (ban) on evictions for residential and commercial tenants. This means that landlords cannot evict tenants for at least 6 months, therefore they are not to fear homelessness during this pandemic.

A fair and logical agreement is to be made between landlords and tenants during the period of this crisis. Tenants need to emphasize their need for rent reductions and landlords must show compassion and make reductions or not charge at all.  Landlords are also being assisted by the government as they take this initiative, something tenants can bring up while having the talk. With mortgage payments at an extreme low of 0.25% interest, financial strain is greatly eased. If it is still not manageable, pausing repayments for up to 6 months from Commonwealth Bank, NAB, Westpac or ANZ is a viable option.

Further rules are yet to be passed by the government in the coming days with stricter guidelines. This is great planning to keep landlords afloat and keep domestic and international tenants under a roof. It is a commendable step taken by the government amid the pandemic adversities.

Sources:

Real Estate

SBS