What if my tenants stop paying rent due to covid-19? Is there any financial assistance for landlords?
- A landlord can claim either The Residential Tenancy Support Payment or the COVID-19 land tax benefit (which is an offset of the land tax liability equal to the rent reduction granted), but not both.
The Residential Tenancy Support Payment has been increased from $1,500 and now provides up to $3,000 per tenancy agreement. This payment will be available for landlords who agree to reduce the rent for COVID-19 impacted tenants from 14 July 2021.
The amount for each landlord will be capped at the rent reduction that is passed onto the tenants, or $3,000, whichever is the lower.
- Landlords who have already claimed up to $1500 can make a further claim for reduced rent up to a total of $3,000.
Landlords can make separate claims for each premise they own.
Landlords cannot ask tenants to repay the reduced amount of rent that has been paid to them under the Residential Tenancy Support Payment or land tax benefit.
Am I eligible for the support payment?
A landlord is eligible for this payment where:
- here is a residential tenancy agreement with a tenant – as proof, you will need a rental bond number or a written tenancy agreement
- the tenant is an eligible COVID-19 impacted tenant
- the landlord has entered a written agreement with the tenant to reduce or waive rent payable from 14 July 2021. A copy of this agreement will be required with a claim for Payment; and
- the landlord has/will not claim the COVID-19 land tax benefit for the same tenancy.
- A landlord can agree to vary the rent for a period that goes beyond 11 September 2021.
- Rent reductions beyond 11 September 2021 may be claimed as part of the payment.
Note: When applying for payment the landlord or agent will be asked to agree to terms and conditions.
A landlord can also:
- reduce or waive rent in excess of $3,000;
- reduce or waive rent arrears that accrued before 14 July 2021;
- agree to vary the rent for a tenant who is not an eligible COVID-19 impacted tenant; or defer rent;
- but these arrangements cannot be claimed as part of the payment.
- There are also a range of other financial supports available. See nsw.gov.au
What is 60 day freeze on evictions?
Eligible COVID-19 impacted residential tenants who cannot meet their residential rent payments will be protected from eviction during the moratorium period commencing from 14 July and finishing at the end of 11 September 2021.
The 60 day protection against eviction for rental arrears applies to all residential tenancy agreements, including informal, unwritten agreements.
What happens with arrears owing from the previous moratorium period?
In March 2021, the Government put in place the following measures to assist COVID-19 impacted tenants who accrued rent arrears between 15 April 2020 and 26 March 2021 (the previous moratorium period):
- Landlords are only able to evict for these arrears if they have first attempted in good faith to negotiate a repayment plan. It also has to be fair and reasonable to evict.
- The tenant cannot be evicted unless they have failed to meet the agreed payment on two consecutive occasions.
- Tenants and landlords will continue to be able to apply to NCAT to terminate tenancy agreements on the basis of hardship.
- Existing agreements about the waiver or deferral of rent payment are not affected.
- Landlords can’t evict using the ‘no grounds’ eviction process, unless it is fair and reasonable to do so.
- Tenants are permanently protected from being listed on tenancy databases.
These measures end on 26 September 2021.
Under the 60 day freeze on evictions, if a tenant is currently COVID-19 impacted, the landlord is unable to take action to terminate the tenancy for arrears accrued during the previous moratorium period until after 11 September 2021.