THE real estate industry has called on other jurisdictions to look closely at the Tasmanian government’s “sensible and pragmatic” approach to protect both tenants and landlords impacted by COVID-19.
Premier Peter Gutwein announced the government will extend the emergency period to 1 December 2020 with additional protection for landlords.
The government will also extend the financial hardship period for commercial tenancies and the Rent Relief Fund to 1 December 2020.
More importantly, it will introduce a new COVID-19 Landlord Support Fund.
Premier Gutwein said the impacts of COVID-19 have been felt by many residential landlords, which is why the government will also introduce a new COVID-19 Landlord Support Fund. The purpose of this fund is to provide financial support to those residential landlords experiencing financial hardship.
This fund will offer landlords, who can demonstrate they have tenants in rent arrears, up to four weeks rent to a maximum of $2000 in financial relief.
Furthermore, the Government will soon release for consultation a Bill that will provide for residential landlords and tenants to formally enter into a payment plan to deal with the tenant’s rent arrears. This Bill will be brought to Parliament before December 2020, and will help provide a pathway forward for tenants and landlords when the emergency period concludes.
As of Thursday, 3 September, more than 700 Tasmanian residential tenants had accessed the Rent Relief Fund. In addition to extending the Rent Relief Fund, the government will also allow tenants who have accessed the fund to apply for a further payment of up to four weeks rent to a maximum of $2000, if they are still in arrears.
The Real Estate Institute of Australia has welcomed the Tasmanian government’s moratorium. President Adrian Kelly said the framework realistically acknowledges that it is both tenants and landlords that may be suffering from the adverse impacts of the pandemic by offering assistance to both.
“Tasmania has outlined a sensible and pragmatic framework with a very clear signal for other jurisdictions less affected by COVID to look at carefully.
“We encourage all premiers and relevant Ministers to look closely at this approach,” Kelly said.
