Victoria commercial property eviction moratorium to be extended to March

Victoria’s commercial property eviction ban and other measures to assist tenants and landlords through coronavirus are to be extended into 2021.

The State Government on Friday announced measures protecting commercial tenants, originally slated to end in September 26, will now continue for an additional six months.

The moratorium on commercial property evictions and rent increases will remain in place until March 28.

The measures will also prolong the state government’s residential tenancy support to the same date, with an option to further extend to April 26.

Consumer Affairs Minister, Melissa Horne, earlier said that if the bill extending the moratorium passed, it would “alleviate those very real concerns of tenants who are financially struggling due to the economic impacts of the pandemic”.

The government’s rental support package was first unveiled in April and two weeks ago Treasurer Tim Pallas announced it would be extended to December 31.

The measures include a moratorium on evictions, except in specified circumstances, and rent hikes.

They also allow for rent reduction agreements to be struck, for formal dispute resolution between tenants and landlords, and for land tax relief for landlords who discount rents for struggling tenants.

The extension has been welcomed by tenant advocates, but others fear it could push struggling landlords to “breaking point”.

Bricks & Mortar head of property Madeleine Cahill said an extension may result in some landlords reaching “breaking point”.

“Many landlords are already beginning to explore selling their asset as they are cash flow poor, or their own household has suffered a drop in wages due to COVID-19,” she said.

“Most landlord insurance policies only cover between 12 and 20 weeks for loss of rent claims, which has now passed, so some will suffer huge financial losses.”

– with Samantha Landy