October 28, 2020
Coronavirus - Landlord FAQ
At Jellis Craig, our priority is supporting our clients and the community throughout this challenging time.
In order to help you as a Landlord understand the current state of play and make informed decisions in relation to your properties under management, we have put together a series of frequently asked questions for your reference.
Note: If you are in regional Victoria you are under different restrictions, please contact your local Jellis Craig office to discuss what restrictions apply to your area or visit this article to read more.
How can I contact my Property Manager or the Office?
The office number is still operating as normal and can direct your call, otherwise you can still contact your Property Manager at any time by calling their direct line, mobile number or via email.
Please note, all our offices are temporarily closed due to current restrictions.
Does this situation change any of my rights as a Landlord?
Despite the changing landscape, your rights as a Landlord remain the same. Tenants and Landlords must continue to abide by the Residential Tenancies Act 1997. There are measures that the State and Federal Governments may put in place that may relate to the tenancy. We will update this page as often as possible when any new arrangements have been made. The following website will have the most up to date information about any tenancy changes during this time; CAV - Coronavirus and Tenants Rights
Am I able to lease my property during the current restrictions?
We are able to undertake Private Inspections for the purposes of leasing or selling a property with a maximum of 10 people from 2 households (excluding the agent).
A prospective tenant/purchaser may leave their home for a maximum of 2 hours for the purpose of attending an inspection and may travel further than 25km radius from your home for this purpose. If the prospective tenant/purchaser be from Metropolitan Melbourne, they are not permitted to travel to regional Victoria for the purposes of a property inspection.
What are the private inspection guidelines?
- Up to 10 attendees from 2 households (excluding the agent) are permitted to attend a private inspection.
- Attendees must wear an appropriate face covering (face mask) for the entire duration of the inspection
- Inspections are limited to 15 minutes
- Buyers and Tenants can travel outside their 25km radius to attend a Private Inspection (excluding properties located in regional Victoria
- Standard social distancing and hygiene requirements remain
- All inspection attendees will be recorded for contact tracing purposes
You can read more here: www.jelliscraig.com.au/blog/coronavirus-update
What happens if I have a tenant vacating during the current restrictions?
Should you tenant be vacating your property, we are still permitted to conduct a final inspection to ensure that the property has been left in a satisfactory condition.
We are permitted to conduct private inspections to re-lease your property in accordance with social distancing and regulations.
Will routine inspections be taking place?
Offices have currently postponed any face to face routine inspections that were due to take place and will be in contact to arrange a time to inspect your property when current restrictions have eased.
In some circumstances routine inspections will may be held virtually. If your property is scheduled for a routine inspection, we may require assistance from your tenant to take a series of detailed photographs and/or a video walk through of your property.
What happens if maintenance needs to be undertaken at my property?
Under current restrictions, property maintenance is now a permitted activity and can go ahead.
Can I be protected in the event my tenant defaults on payments?
In most instances, a valid landlord's insurance policy will provide you with cover if the tenant defaults on their rent. These claims require the tenancy to come to an end before you can make a claim, and insurers won’t pay rent whilst the tenancy is still continuing.
Any agreement that you reach with your tenant to reduce or defer rent won’t be claimable.
We suggest reviewing your insurer's website and PDS for more information. Our insurance partner, EBM RentCover, has a handy set of FAQs which might also prove useful
What happens if my tenant needs to vacate the property due to financial hardship?
If your tenant needs to vacate the property due to loss of employment or income your Property Manager will speak with you in the first instance to see if an agreement can be made to end the lease earlier than the stated end date on the fixed term lease.
What happens if my tenant cannot pay rent as a result of financial distress?
Whilst Tenants and Landlords still need to abide by the Residential Tenancies Act 1997 (the Act), the Government is encouraging Landlords and Agents to be compassionate and show goodwill during this pandemic.
The Federal Government announced that there should be a suspension on rental evictions for people who are facing financial distress as a result of the Coronavirus. This is yet to be ratified by the State Government but is expected soon.
This provides a measure of security for those who have been adversely affected and are concerned about the implications of being able to keep residing in their rental home.
If your tenant is experiencing financial hardship as a result of the Coronavirus, we have advised that they need to contact us as soon as possible. In the first instance they are guided to explore the available options in the various Government assistance packages. If these options are not enough, they may complete a Financial Hardship Application form, which provides specific details about their situation and the request to either reduce, or defer their rental payments.
The decision to agree with the request to reduce or defer rental payments lies with yourself as the Landlord, and should only be made once you have considered your own situation.
What is the Rental Relief Package and how does it work?
The Victorian Government has approved a rent relief package that provides funding for tenants who are under financial duress due to Coronavirus impacting their financial situation.
This is a one-off grant specifically for tenants to ensure that they can maintain safe, secure and stable accommodation and is paid directly to the tenant’s agent, lessor or the landlord to contribute to the tenant’s rental payments during this time of financial hardship. This grant will be administered to eligible tenants who have negotiated a rental reduction with their landlord or real estate agent and have lodged that agreement with CAV.
Where can I find more information?
As the information being provided by the Victorian Government is updated regularly, further information can be found below:
Should you have any questions please don’t hesitate to contact Jellis Craig via email or phone.
Any advice contained in this article is of a general nature only and does not take into account the objectives, financial situation or needs of any particular person. Therefore, before making any decision, you should consider the appropriateness of the advice with regard to those matters. Information in this article is correct as of the date of publication (28th October 2020) and is subject to change.