Helen Harm sets great store on communication and says it’s even more important than usual during COVID-19.
The Warwick real estate agent – who says she’s as busy as ever despite the current economic challenges – has welcomed new Queensland Government guidelines on rental tenancies impacted by COVID-19.
The guidelines followed the National Cabinet’s moratorium on tenant evictions – to apply until the end of September – which had caused concern on the part of many owners of rental properties.
The intent of the moratorium is to prevent people who have suffered a severe financial impact from COVID-19 being unfairly evicted from rental properties, but many Queensland landlords were concerned the arrangements could be open to unfair manipulation by some tenants.
Helen Harm says the new guidelines should give confidence to both owners and tenants, with clear criteria to apply where a tenant cannot meet their rent due to lost or reduced income.
But Helen says the most important factor is open communication – and leading to negotiation.
“I think the concern a lot of landlords had was that a tenant could simply stay where they are indefinitely if they were unable to afford their rent,” Helen said.
“And that a tenant would not have to prove they’d lost their job.
“There are always going to be issues around the rent someone can afford to pay, even without COVID-19 and sometimes just in the normal course of events tenants have to understand they may need to adjust their lifestyle and their budget.
“Obviously given the current circumstances there are going to be people who are genuinely impacted and as agents we need to work with them and with landlords.
“The most important thing in all cases, the absolutely critical thing, is for tenants to communicate with agents, and the agent will communicate with the owner.
“Just be honest and up-front about your situation and open up the communication channels – then we can see what can be negotiated in terms of rental arrangements where someone meets the criteria.
“Communication is vital.”
Queensland Housing Minister Mick de Brenni announced the new ‘Practice Guidelines’ for tenancies in Queensland last week and said most property owners and tenants “are already coming to their own agreements about how they can work through this period, making sure that nobody loses the roof over their head”.
Mr de Brenni said the Practice Guide will help property owners and tenants in their discussions “to negotiate a way through the next six months”.
“For those that need it, we’ve provided the detail to help Queenslanders understand their rights, assist in discussions about their individual circumstances, be they lessor or lessee, and assist in coming together in collaboration to new agreements where necessary,” the minister said.
“We’ve worked with Tenants Queensland and the Real Estate Institute of Queensland on the development of the guide, who agree this is a useful tool for tenants and owners alike.
“The new regulations strike a fair balance for tenants, owners and property managers.
“These are a temporary set of measures to ensure tenants and owners are protected during this pandemic.
“Tenants who are suffering or who have suffered excessive hardship because of COVID-19 who cannot meet their rent commitments cannot be evicted or listed in a tenancy database because of that suffering.”
THE DETAIL…
The Residential Tenancies Practice Guide provides detail on:
• Threshold criteria to qualify for the application of the COVID-19 rental response, that includes a 25 per cent reduction in income, or where rent exceeds 30 per cent of the tenant’s income.
• The evidence that tenants can be asked to provide the same proof of finances to property managers just as they would when starting a tenancy.
• Access for the sale of the property, virtual rental inspections and access for essential repairs and maintenance.
• The 75 per cent income loss and less than $5,000 in savings threshold before a tenant is eligible for a 7-day cap on break lease fees if they end a fixed term lease early.
• The extension on the term of a fixed term tenancy agreement during the COVID-19 period to September 30, 2020 unless agreed otherwise by the owner and tenant, or there is an appropriate ground to end the tenancy.
• Conciliation with the Residential Tenancies Authority, including the renegotiation of lease agreements where parties are COVID-19 effected, which could cover new rent payments and deferrals if this is agreed to.
A copy of the Practice Guide can be found online at www.COVID19.qld.gov.au/the-hub.
• To check out current properties in the Warwick and wider region for sale and for rent visit www.helenharm.com or call Helen on 0408 457 496.
