REIQ slams handling of QLD coronavirus rent relief scheme
The Real Estate Institute of Queensland says it’s “bitterly disappointed” with the Palaszczuk government’s proposed COVID-19 tenancy protection measures, saying they go “too far” and neglect landlords.
Queensland Housing Minister, Mick de Brenni, announced the provisions on 9 April, which include a six-month hold on evictions, a ban on non-essential inspections or repairs, and a waiver on rental payments for virus-hit tenants.
The REIQ’s CEO, Antonia Mercorella, said the government’s plan came as a surprise following a period of close consultation, where “everyone agreed” to the eviction moratorium and negotiations for reduced rents.
“We are bitterly disappointed with how the Minister came out with the announcement, despite the many hours of work we’d invested to come up with a balanced outcome,” she said.
“We felt left out in the cold. I have no understanding why the government has added these methods of their own volition. It defies logic.”
The comments come after Mercorella sent an open letter to landlords on 14 April, claiming the temporary legislation would leave them “footing the bill” without any way of recouping lost rental income.
“Put simply, a rent reduction negotiated with your tenant is a permanent rent waiver meaning you, as the landlord, will be out of pocket, with no means of recovering any unpaid rent in the future post COVID-19,” the letter stated.
The REIQ expressed concern that tenants wouldn’t have to provide proof of financial hardship to request reduced rent; that landlord insurance wouldn’t cover for rent arrears, and that tenancy agreements would automatically be renewed if expired during the crisis period.
Mercorella told realestate.com.au, Minister de Brenni didn’t want to see tenants selling assets, accumulating debt or dipping into their super, but “ultimately, that’s what owners will be having to do”.
“We accept there will have to be some financial distress for owners, but this protection package is solely to protect the tenant; [the package] literally deserts owners with all of the pain, the risk and the heavy-lifting.
“It just goes too far.”
The REIQ has launched a “grassroots” campaign urging anyone concerned to send a letter to Minister de Brenni, or their local MP via a template on their website, ahead of Parliament sitting on 22 April.
“Process to ensure no party gets ripped off”
Two days after the REIQ’s open letter went out, Minister de Brenni’s office released a statement saying there had been “some misinformation” around the plan, which strives to “sustain tenancies during the COVID-19 pandemic period as this is the best possible outcome for owners, property managers and tenants.”
The statement added “an increased set of grounds” for property owners to be able to take back their property – including the need to move in or sell, as well as any damage or anti-social behaviour that breaches the rental agreement.
“It is plain wrong to say that our framework allows tenants to unilaterally demand a rent reduction, or leave the property without first proving they have lost their job and are in significant hardship,” Minister de Brenni said.
“What is true, is that tenants affected by income loss due to coronavirus can apply for Commonwealth income support and ask to negotiate a temporary and fair rent reduction, which will be supported by an independent conciliation process to ensure that no party gets ripped off.”
The government says the framework and guidelines are “designed to protect property owners by ensuring there is complete clarity.”
This article originally appeared as “Peak body says it was “left out in the cold” with QLD’s rent relief scheme”.
