News

The Emergency Response Act has been extended to the 6th February 2021, with some amendements.

Listed below are answers to the most common questions we receive on Tenancies during the COVID-19 Pandemic. Please note these are our interpretations of the new legislation and may be subject to change.

Does my tenant still have to pay rent?

How do I know if my tenants are suffering financial hardship?

What happens if my tenant can't pay?

Can you put up the rent during a pandemic?

How will my routine inspections be carried out?

Does the tenant still have to pay water?

Can you find a tenant if my property becomes vacant during COVID-19?

Can I still do maintenance?

Does my insurance cover the rent?

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1. Does my tenant still have to pay rent?

Where tenants have been impacted by COVID-19 but still have the capacity to pay their rent, the Government is clear they should continue to do so. Where alternative arrangements are needed as a result of COVID-19, tenants and landlords are encouraged to work together on an agreement.

Solutions may be as simple as a 'Temporary Rent Reprieve' which means you can offer your tenant a reduced rent now for a period of time, and catch up the arrears at a later date when their situation improves OR you may be fortunate enough to be in a position to offer a 'Temporary Rent Reduction' meaning you actually reduce the rent by a certain amount for a period of time (no pay back).

We are here to guide you in these agreements. We understand that many of our landlords have also been financially impacted and as such each situation and solution will be different.

Where an agreement cannot be reached, the matter may need to go before the South Australian Civil and Administrative Tribunal (SACAT). SACAT have the powers to enforce rent reductions, rent reprieves and payment plans which are binding on both parties.

 

2. How do I know if my tenants are suffering financial hardship?

We are in continual communication with our tenants. If they notify us they are experiencing financial hardship, our first step is to request they complete a Financial Hardship Application which requests 'reasonable' information on members of the household and how they have been affected. appropriate evidence is Job Keeper / Job Seeker payments, pay slips and bank statements etc. This information is then used to assess affordability. This is information that SACAT would request from a tenant before making a ruling.

The details of this application will be discussed with you to assist in determining a solution.

 

3. What happens if my tenant can't pay?

The Government have passed legislation to protect families from homelessness during a pandemic and there is a moratorium on evictions in the instance a tenant can prove financial hardship. If the landlords and tenants have been unable to reach an agreement on rental payments, the tribunal will have the power to amend or vary the rent, and to put in place a firm payment plan. This of course may cause financial strain to a landlord who consequently is unable to meet mortgage repayments. In this instance it will be crucial you contact your financial institution and arrange a reprieve from your payments.

 

4. Can you put the rent up during a pandemic?

We are now able to increase the rent (post 30th September) provided the tenant is not suffereing financial hardship as a result of the COVID-19 Pandemic. In the instance the tenant is suffering (of which appropriate evidence must be put forth such as Job Keeper / Job Seeker Payments, bank statements etc) the rent can not be increased. This law is effective until the 6th Feb 2021, or until the pandemic is declared over.

Prior to this, there was a blanket moratorium on ALL increases from the 30th March for 30th September, meaning rent can not be increased during this time. Rent increases that have were agreed too before the 30th March 2020 were rescinded and take effect as of 30th September 2020.

 

5. How will my routine inspections be carried out?

Routine inspections are now back to normal with our Property Managers attending in person.

At the commencement of COVID-19 we were specifically prohibited from attending the premises for the purpose of a routine inspection unless 'exceptional circumstances' exist. To combat this, the Government passed legislation that allowed landlords to use technology such as face-time, live video or time-stamped photos for routine inspections where possible, and the tenant had a responsibility to facilitate this type of inspection.

We understand that different tenants have different tech habits and moved quickly to create and implement a simple to use online form link that guided our tenants through our requirements and enabled easy upload of images per area from any device. We are so grateful at the wonderful response we had from our tenants.

The reports were collated and emailed as a pdf file, as well as uploaded to your landlord portal as a 'document' for future reference.

In the instance the tenant was unable to facilitate an online inspection, this was deemed an 'exceptional circumstance' and we were able to legally attend with sufficient safety measures in place.

 

6. Does the tenant still have to pay for water?

Yes. However as for rent, if the tenant is experiencing financial hardship the water bills may also require a payment plan.

 

7. Can you find a tenant if my property becomes vacant during COVID-19?

Yes, we have been successfully leasing properties during COVID-19. The new legislation states that we can still show prospective tenants in order to tenant it, however we must limit inspections and ensure that they are conducted one on one. It is industry recommendation that only approved applicants are shown the premises. As such we have created 'virtual tours' of our vacancies. This combined with sourcing tenants from our database has been extremely successful and we are continuing to lease properties to great tenants in normal time frames.

 

8. Can I still do maintenance?

Maintenance or smoke alarm servicing can still proceed with trades exercising increased hygiene practices. Unless of course the tenant is unwell or self isolating due to having contracted COVID-19. In this instance, we will delay non urgent maintenance, and for urgent maintenance will determine a solution on a case by case basis.

 

9. Does my insurance cover the rent if my tenant can't pay?

This very much depends on the circumstances of the tenancy, and of course on the individual policy. What we do know is that good landlord policies have cover for defaulting tenants so the likely answer is yes, there will be some form of cover, however this cover is not payable until a tenancy is terminated. We will of course work with you and your insurer in the event it is needed to obtain the best outcome.

 

To read Consumer & Business Services Rental Advice during Covid-19, click here.

To read SACAT Fact Sheet on Amendments to Residential Tenancy Agreements, click here.