Good morning everyone,
Our industry was expecting Scott Morrison to address the nation in regards to the Government’s directive in how we move forward and treat non-payment of rent, notices to leave etc, due to job losses from the mass business closures currently occurring. This decision and announcement has now been deferred to this Friday, as to what time, we are unsure, however, the moment it is released and once we establish the effect on your property, we will email you all a further update. We would think there is a lot to consider in this regard and the parties most likely are having difficulty on agreeing on the new directives.
We understand all Landlords and Tenants are desperate to know if a tenant loses their job and cannot pay rent, what benefit, if any, will be given to the tenant. Furthermore, if the tenant cannot pay rent and the Government rules in the tenant’s favour whether the rents will be frozen or the rent to be negotiated at a reduced rate, what relief the banks will pass onto the Landlords who have a mortgage to pay?? We are in unchartered territory and unfortunately we are unable to provide advice to anyone and take any action until the Government hands down their new directives which will override the Residential Tenancies Act. It is currently a waiting game.
We understand a lot of our landlords are also at risk of losing their jobs which puts further strain on the ability to maintain an investment property. Our Sales Department is still selling properties and there are still buyers out there because cash is very cheap at the moment to buy and we cannot forget there is still a lot of people that will not be losing their jobs depending which industry they are in. We have sold 3 properties this week. If you find yourself in a situation that you need to consider selling your investment property, please let us know and we will arrange a market assessment for you so we can discuss your options.
We have been advised by Terri Scheer Landlord Insurance that an EMBARGO has now been placed on Landlord Insurance.
Once further information is received, we will send out another update.
In the meantime, trust that we have your best interests at heart and we understand and sympathise with all landlords and tenants especially because we are still getting through the effects of the flood last year and now we are hit with COVID-19.