NSW's residential tenancy support package explained: How it works for struggling renters & landlords

In April the NSW Government announced it was allocating $440 million towards rent relief for tenants and landlords in both commercial and residential leases.

The new emergency measures, funded for six months, will temporarily protect tenants who are unable to pay their rent as a result of COVID-19.

In summary:

• Tenants are obligated to pay rent

• If tenants are suffering financial hardship as a result of COVID-19 and they can demonstrate they have lost at least 25% of their net income after tax and after benefits (such as funds from the Government stimulus package), they are able to approach their property manager for a rent reduction

• If all parties are unable to reach an agreement, the tenant should approach NSW Fair Trading. If the tenant is still unsatisfied with the outcome, they can approach NCAT (NSW Civil & Administrative Tribunal).

• Tenants SHOULD NOT assume any reduction in rent does not need to be paid this back once COVID-19 restrictions have been lifted (i.e. does the rent discount need to be paid back later to the landlord or is it permanently waived?). This needs to be negotiated with all parties.

• Important to note all tenants who are not impacted by COVID-19 are expected to honour their existing tenancy agreements including paying all rent and charges in full.

Important links for more information:

https://www.nsw.gov.au/covid-19/financial-support
https://www.fairtrading.nsw.gov.au/resource-library/publications/coronavirus-covid-19/property/moratorium
https://www.service.nsw.gov.au/transaction/residential-tenancy-support-package

Let Jodie our Senior Property Manager answer any questions you may have in these uncertain times.

Jodie White
Senior Property Manager
t. 02 4353 8712
m. 0448 374 533
e. jodie@thepropertymarket.com.au