Landlord Update from the Property Management Team

REIQ REQUEST FOR HELP – IMPORTANT PLEASE ACTION

Everyone matters in real estate – that’s why it’s important everyone is recognised equally when it comes to the Palaszczuk Government’s COVID-19 residential property proposals. For landlords in particular, now is the time for your voice to be heard.

As the peak body for real estate in Queensland, The REIQ supports the need for tenant protection during COVID-19 however, we are fundamentally opposed to some of the proposed measures. You should be too. As a landlord, you will ultimately foot the bill if changes are not made to proposed amendments in their current form.

Whether you’re a landlord or real estate supporter, all it takes is a few simple steps for change to take place – Please copy and paste this link to the REIQ to help make a difference https://www.reiq.com/everyonematters

See Media Release from the REIQ here:

14 April 2020 

An Open Letter to Landlords from The Real Estate Institute of Queensland 

Will the Palaszczuk Government’s Special COVID-19 Protections for Residential Tenants protect you? 

As the owner of an investment property in Queensland, if you are not already aware of the Palaszczuk Government’s proposed Special COVID-19 Protections for residential tenants and landlords, The Real Estate Institute of Queensland (REIQ) wants to ensure you understand them. As the peak body for real estate in Queensland, we support the need for tenant protection during COVID-19 however, we are fundamentally opposed to some of the proposed measures. You should be too. As a landlord, you will ultimately foot the bill if the following proposals are introduced:  

Your tenant/s will NOT have to pay back any rent. Put simply, a rent reduction negotiated with your tenant/s 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.  

You CANNOT ask your tenant/s for formal financial information if they claim they cannot pay some or all of their rent due to COVID-19. This potentially exposes you to false claims and exploitation of the proposed protections for those who genuinely need it.  

Your Landlord Insurance will NOT cover you for rent in arrears*. The normal terms of your policy won’t cover the rent reduction as this is a mutual agreement between you, as the landlord, and your tenant and you cannot follow the necessary rent default process as this is prohibited. (*Please contact your relevant insurer for individual policy conditions)  

Your tenancy agreement WILL immediately extend by 6 months if it expires during the 6 month freeze on evictions. Tenants will be automatically entitled to a 6-month extension of the tenancy agreement meaning any protections may last up to 12-months.  

Your tenant/s can REFUSE ENTRY for anything other than emergency repairs. Not only can your tenant refuse access, they don’t have to participate in virtual property inspections either. There’s also no clarity as to whether prospective purchasers can inspect a property that is for sale.  

Your tenant/s can BREAK A LEASE with only 7 days’ notice. To make matters worse, you cannot recover any lost rent or costs associated with finding a new tenant as would normally apply. 

Now you understand how the Palaszczuk Government’s proposed Special COVID-19 Protections favour tenants at the expense of landlords, The REIQ needs your urgent help before Parliament sits to pass these protections on Wednesday, 22 April 2020. For our voices to be heard, complete your details in the template letter to Premier Palaszczuk provided in the enclosed link and press send. It’s that simple. Together we can make a difference and achieve a more balanced outcome for landlords. 

QLD TENANCY LAWS

As a result of COVID19 (Coronavirus) we wish to remind everyone that to date there have been no law changes for tenancy in Queensland.

ARREARS 

At this stage we are experiencing very low arrears as a result of COVID-19 in our office. We are working closely with any tenants who have lost jobs or had income reduced. 

HARDSHIP APPLICATION

Contrary to previous advice provided by the REIQ, the government has advised landlords can not request financial records from tenants to substantiate any hardship claims.  We have adjusted our forms to comply and are asking for tenants assistance in providing as much information as they are willing to provide. 

Stay Safe and Well

From the Property Management Team