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RESIDENTIAL TENANCIES IMPACTED BY COVID-19: ADDITIONAL TRANSITIONAL PERIOD FOR EVICTIONS AND INCREASED FINANCIAL SUPPORT

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The latest wave of Covid-19 lockdowns has led to mass closures of many stores and businesses, causing many people to suffer financial difficulties. In support of struggling residential tenants, a moratorium on evictions has prevented impacted tenants from being evicted for rental arrears during the period of 14 July 2021 to 11 November 2021.

To be eligible under the moratorium, the tenant must show that they have been impacted due to Covid-19 and continue to pay at least 25% of the rent payable under the rental agreement.

 

  • Transitional period

In a recent update by the NSW government, a transitional period was introduced to run from 12 November 2021 until 12 February 2022. Tenants affected during the moratorium period are exempt from eviction for arrears during this period unless:

1.If the landlord and tenant have agreed to an arrears repayment plan:

-the tenant fails to make repayments on two or more consecutive occasions, and

-it is otherwise fair and reasonable in the circumstances for the tenant not to be exempt.

OR

2.If the landlord and tenant have not agreed to a repayment plan:

-Both parties participated in good faith in a formal arrears repayment negotiation process with NSW Fair Trading, and

-it is otherwise fair and reasonable in the circumstances for the tenant not to be exempt.

 

The Tribunal will assess if it is fair and reasonable for the tenant to not be evicted according to:

-Any negotiation of a repayment plan;

-Any payments made towards the arrears;

-Nature of the financial hardship by both parties;

-Availability and affordability of reasonable alternative accommodations;

-If landlord has received any financial assistance; and

-Special vulnerability of the tenant.

 

  • Residential disputes

Both landlord and tenants should retain as much documents as possible as in the event of a dispute occurring, evidence will need to be provided in support of the case. This is why it is important for both parties in a tenancy to put any rental agreement in writing and the proper legal form as evidence.

At Sun Lawyers, our experienced property lawyers can assist you with the drafting of any rental agreements. A well drafted agreement will remove any ambiguity regarding the terms of the rental repayments plan agreed while also succinctly outlining the responsibilities of both parties. We always recommend all parties in a tenancy impacted by Covid-19 to protect themselves at the first instance to avoid any costly and stressful legal dispute in the future.

If you are facing a residential dispute, we can also assist to review the evidence and circumstances of the case to advise you on your standing in the dispute.

 

  • Financial Support

The Residential Tenancy Support Payment for rental reductions has also been increased from $1,500 to up to $4,500 per tenancy agreement. Landlords can make separate claims for each of their rental premises they own.

However, Landlords can claim either the Support Payment or the land tax benefit and cannot request the tenant to repay them the reduced rent covered by the payment or benefit.

Applications will open from Friday 24 September and is available for all landlords who agree to reduce the rent for tenants impacted by Covid-19 from 14 July 2021.

For further information regarding the Residential Tenancy Support Payment, please visit our previous article

If you have any queries regarding residential tenancies, please do not hesitate to contact us at any time at 02 9267 4988 or Vincent.hui@sunlaws.com