April 25th saw an immediate six-month rent freeze on all residential tenancies as a response to the COVID-19 situation. Tenancy terminations will also be difficult to undertake for at least the initial three months of this period. The rent freeze aims to support tenants to stay in their rental properties without being concerned that a rent rise will result in them needing to end the tenancy. Consequently, this will assist tenants in having somewhere to self isolate and maintain social distancing if needed. It will also reduce the impact of any financial difficulties caused by COVID-19 on the tenant’s income.
Rent Freeze Impacts for Tenants
As a tenant, you will have the reassurance that your rent will not rise during the six-month rent freeze period. Other key points to note are:
- during any lockdown period, tenancies cannot be terminated unless both parties agree or there are specific circumstances
- tenants can stay in the rental if they had previously given notice before the lockdown period if necessary
- tenants can still end a tenancy as normal if they want to
- rent still needs to be paid by the tenant; they remain liable for all rent payments
- causing damage or antisocial behaviour is not permitted
Other key points to note are that a tenant does not legally need to let the landlord know they are COVID-19 positive. However, if the landlord or their representative needs to come on-site, they are encouraged to let them know.
Rent Freeze Impacts for Landlords
As a landlord, any rent rises for the six months are forbidden, as are tenancy terminations. Damages of up to $6,500 are payable should the landlord breach any of the rent freeze conditions. While tenants remain fully liable for their full rent payments, your tenant may face financial difficulties in the short term. It has been suggested that both parties need to work on coming to an arrangement regarding rent which suits both.
A tenancy cannot be ended unless in specific circumstances, including:
- assault or threat of assault on the landlord or their family or neighbours
- property abandonment
- is 60 days behind on the rent
- significant damage to the property or antisocial behaviour
- fixed-term tenancies expiring during a lockdown revert to a periodic tenancy
At Hollie Joss Property Management, we too must follow the guidelines issued by the COVID-19 alert levels, as well as the associated legislation related to COVID-19. If you have any questions or concerns regarding your tenancy, please contact us directly to discuss them with one of our team.
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