C&G’s Guide: Support for Victorian Landlords and Tenants
This year has been unpredictable for both landlords and tenants, especially with stage four restrictions impacting upon the real estate industry. However, the Victorian Government has announced new measures to support landlords and their tenants through this difficult time. This latest C&G blog highlights the financial assistance available and how you can access them.
The moratorium on evictions will be extended.
The moratorium on evictions was implemented in March and due to expire on the 29th of September. It has now been extended until the 31st of December. This means there will be no rental increases or evictions for commercial and residential tenants affected by COVID-19. Normal consequences can still apply if tenants are found breaching their lease agreement for other reasons.
Tenants can access a Rental Relief Grant.
Tenants could previously access a $2,000 rent relief payment if they were experiencing financial hardship due to COVID-19. The Government has introduced a one-off $3,000 Rental Relief Grant for tenants who have reached out to their landlord or property manager for a temporary rent reduction. You can lodge your agreement with Consumer Affairs Victoria and apply for the grant through the Victorian Government’s website. The payment will be treated as rent and paid directly to your landlord.
Eligible landlords can access a higher land tax discount.
Until now residential landlords have been able to qualify for a 25% land tax discount. This is granted if they have reduced rent for their tenants, or had difficulty securing a tenant during the pandemic. Landlords can now access a 50% land tax discount if they have reduced their rent by 50% or higher.
Commercial landlords may be eligible for the Commercial Landlord Hardship Fund. This $60 million fund is intended to support small commercial landlords who are suffering financially due to reduced rent. They may be able to receive up to $3,000 per tenancy.
Are you a landlord or tenant, and wondering how these changes affect you? Do not hesitate to send your questions to the friendly team at Chisholm and Gamon! This is an unusual time for us as well, and we’re doing our very best to ensure all our clients make it through this pandemic together.