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Renter Protection Package Proposal Announced

Last Thursday, Deputy Premier Jackie Trad and the Minister for Housing & Public Works, Mick de Brenni announced their solution for Queensland in relation to the federal announcement that tenants will benefit from a moratorium and rent deferral.

The proposed Special COVID-19 Protections for Residential Tenants and Owners (“Renter Protection Package”) includes:

  • The ability for tenants to permanently waive rent, without an option to defer
  • No requirement to substantiate to the landlord that a loss in income has indeed occurred
  • An automatic right for the tenant to extend a lease for an additional 6 months (with the reduced or no rent, creating an effective 12 months moratorium on evictions)
  • The ability for a tenant to break the lease with one week’s notice
  • The ability for a tenant to not let tradespeople and the real estate agent onto the premises to keep it in good repair (and even decline virtual inspections).

The REIQ is concerned that mortgage payment deferrals are not readily available and that landlord insurance will not protect landlords under the circumstances. You can read a redacted version of their letter to the Premier here.

Queensland Parliament will be sitting next on Wednesday, 22 April 2020 when it is expected to pass the Renter Protection Package.

SCA (Qld) shares the REIQ’s concerns and believes that quick action is required to help construct a more equal assistance package. We call on members to support the REIQ campaign to effect change by:

To be clear, SCA (Qld) agrees with the intent of the package and supports the need to aid both owner and tenants through these troubled times, but we believe that this package is far too broad and imbalanced to result in the desired outcomes. The REIQ have put forward sensible proposals for a fairer and more balanced framework and we believe they represent the best chance of creating equitable protections for both owners and renters.

Take this opportunity to be heard and support our sector colleagues. We urge you to send your demands for a more reasonable protections package to the Premier.

 

This information was first published by Strata Community Association QLD on 16 April 2020

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  1. MAURICE LEPORE

    I have two properties in mining towns in QLD and one in Vic, or should I say, the bank has these!

    There is no way on earth I can support these ridiculously one sided proposals!!

    We are all human beings at the end of the day and both sides of the real estate spectrum are affected by this sinister plot to derail mankind!

    I have 3 mortgages that are seriously negative geared, having to pay at least half of each mortgage payment every month as the rent does not cover it! On top of that there are the other expenses ranging from repairs, rates, agency fees, body corp, insurances, etc…

    We are not banks as landlords! I have sacrificed, worked my arse off, paid too much tax like most self employed business owners and have absolutely nothing to show for it as I will be in debt into the afterlife!

    What gives you people the right to waiver, not defer the tenants obligation when we as landlords still have to pay our loans and interest as no waiver applies to us! This is nonsense and you should be ashamed of yourself for even coming up with such a dumb idea!

    You need to come off your high horses, wake up and do whats fair for all of us!

    You need to change these proposals to be in line with the REIQ which fairly assists both parties in this equation!

    If you dont, you will know about it when the next election comes around, mark our words!

  2. Jeanette McGinley

    The tenant should show that they have had a loss of income eg 20″% or more

    Tenant has to pay more than 30 per cent of their income in rent and may have less than $5000 personal savings

    If the landlord should not be put in an impossible position where they may end up losing their investment at a huge lose

  3. Kevin B

    This will be the most damaging & biased piece of legislation favouring tenants at the expense of landlord financial commitments ever.
    It gives no protection to landlords.
    It allows for no substantiation of tenant hardship. It allows no rent deferment , just a NO PAY option& …you offer the tenant a further 6 month to live in my property rent free with no financial obligations whilst I am expected to continue to pay my mortgage. I won’t even be permitted to conduct repairs!!
    QLD parliament.. you about to open the floodgates of mortgage default & fraudulent , unchecked tenant hardship claims.
    In fact QLD parliament & Dep Premier Jackie Trad.. I’d be thinking that we should all move up to QLD from interstate for a holiday & opt in to your free for all , landlord subsidised , free rent for the next 12mnths. Great idea!! Cheaper than a hotel!!
    I implore you to balance out this piece of legislation to also offer landlord protection. At the least , require tenant substantiation of hardship

  4. Ali

    I am with Maurice. I am a tenant, not a landlord. Yet I agree with where Maurice is coming from. Fair is fair. One sided is not fair. Am I missing something here i.e. are the Government or insurance companies going to cover the landlord losses or something? Otherwise we are inviting anarchy.

  5. Jennifer

    We are all experiencing worries times and yes I am willing to negotiate a new rental agreement that would cover my costs should the Tennent be in a situation of loss of income but this needs to be proven. I still have to pay costs I also have a loss of income no one covers my cost I am sorry this is such a one sided arrangement with no rights to the owners. My unit includes electricity and water does that mean I have to pay that for them too body Corp fees, council rates mortgage who pays my rent?

  6. Jodi

    I have 5 properties , all with just over 20 per cent equity.. All these properties are negative geared, meaning I have to contribute large sums of money each month.. If this legislation goes through, I will be forced to sell most of the properties and lose substantial amounts of money… even go bust myself.. if I can not sell them. This ruling is the most ridiculous thing I have ever seen. Do you realise that we are people who give other people houses to rent, so the government does not have to pay for them… And why would you even stipulate that you do not have prove loss of income.. This is just asking for trouble.

  7. Trevor and Kathy

    I know – just not fair. Lots of retirees have rentals for their self managed super investments.
    But it must be hard to keep paying rent if you’ve lost your job.
    Very hard situation. Let’s hope they can relax some isolation rules sooner than later

  8. Lily

    I am very sad this is one sided, favouring the tenant with no regard for the landlord and putting them in bad situations as we have to pay the bank. Who ever put up this proposal has no brain to say the least & you will be voted out at the next election.

  9. Lee-Anne Gebbetis

    This proposal is beyond ridiculous and is not fair at all. Are you going to pay my mortgage when i am receiving no rent?? We are all willing to help where ever we can as that is the Australian way but you need to do something to also help Landlords!

  10. Smithy

    What an absolute joke. Jackie and Mick need to pull their head out of their ass. The end.

  11. K Barker

    The fallout from this poorly thought-through “solution” will be catastrophic. Owners of investment properties who cannot meet mortgage payments will sell and we will see fire-sale prices for Queensland real estate. Another consequence will be a shortage of rental properties.
    My husband and I own a beautiful holiday rental unit in the Whitsunday region of Queensland to supplement our aged pension. It has no mortgage. Property prices in this region have not recovered since the GFC and are very vulnerable to this crisis. Income from our property has been declining for years and has now plummeted to virtually zero, however outgoings continue on, increasing every year, e.g eye-watering strata fees of $15,000+ pa (mostly due to astronomical building insurance premiums which have increased by 89% in just one year), high council rates ($3,000 pa for a 2 bed unit), water, power, commissions, etc. etc. No waivers, deferments, discounts are offered by any of these bill senders! Rental property owners have been thrown under the bus! We are now considering selling this unit at a fire-sale price since the agent advised that there are no buyers for properties such as ours, where no income can be demonstrated. And as it provides us with no income, we will sell for what we can get and spend it in our retirement. Queensland is a backwater cot case.

  12. Jennifer McConnell

    We have had Rental properties in Queensland for over 20 years. This new law is just degrading and humiliating for the Landlords/Owners/Agents
    Even if the banks did a deal with the Owners, the owners are still going to be dealt a hard deal. The Tenants will get Rent Allowance from Centre link. I definitely do not agree with the extended Lease to 12 mths and only One week notice on moving out.
    We have been blessed with great Tenants over the many years, with only 3 been nightmares.

  13. Philip Paulo

    The Govt & well meaning bureaucrats shld be able to find a more equitable sharing of pain and burden. If a solution is lap sided and benefits only a party then a new problem is created- maybe even more severe. This proposal is without regard for balance and invites a more problematic outcome. Most landlords don’t own their properties and are still liable to fulfill financial obligations to institutions. Others depend entirely from the rent income as monthly self funded pensions.
    Looks like this proposal is an absolute knee-jerk reaction from a complex pressure but without doubt lacks intelligence and void of Australian fairness and values.

  14. Anita

    Wow, what a great idea Jackie, you are obviously well off financially, otherwise you would not put such a ridiculous proposal forward.
    Have you actually thought about it ??? We have rental properties that are owned by the bank and we work extremely long hours to support the mortgage repayments, rates, water, insurance and all the repairs that come along with a property.
    We went into debt so hopefully when we retire we would not have to get a hand out from Social Security, but if this ridiculous nightmare goes ahead, I dare say that we along with every other landlord will sell the houses (cheaply because of the present economy) no investors would want them, as there is nothing in the end for them, soooooo all of us investors will have no money or property and we can then claim Social Security till the end of our lives, sounds quite good to me, I’m opting to quit work, sell up all that I have and live off the Government, at least we will then be looked after.
    I’m just wondering where all the X tenants in Australia will live,
    Wake up to yourself and be fair on everyone, you are about to unleash an Australian catastrophe.

  15. Andrew

    How stupid can you get…. OR are they just wanting to take money from the rich to give to the poor and quickly bring in the new world order.. (which shall be nothing nuy bondage)

  16. Darren Millar

    I have A tenant always behind in rent the and is always require a breach notice . she is on month tenant agreement as we are over her using the system in her favour she always redeemed the breaches at the last hour but at 18 over two years this continues to this day . This a announcement allows for this to be to the point that we can not sleep at night knowing I have some one in my property that will use any thing they can to there advantage
    This is the most disgusting absurd stupid policy against my rights my civil rights we pay land tax we pay montage we pay rates we pay insurance we pay repairs we have to fix all complaints we pay capital gains tax we pay stamp duty it’s my house it’s my property it’s my rights we will bend to the new rules to Covid 19 but we are not a communist state we are not to be removed from our sovereign rights this is and now has gone to far . Your 500 million business package was a discussing amount greed to you . I do care for your election I do not care if you change your mind I do not what you to run QLD and as you say I make no apologies famous last words please go to the pools as your heath minister says it’s safe but not safe to inspect our property’s i think you are now worse in the knowledge that you pray on the disadvantaged to gain votes and that in its self is a low act QLD needs a change I think you have already placed in Meany minds unstable leadership

  17. Terry McGregor

    I lost my business 2 years ago because of cancer. Since then we have relied on rental income, shares which we are selling off for income, and cash in the bank which is rapidly disappearing. I have to wait another 2 years to get the age pension. How are we suppose to pay our body corp fees, rates etc without any rental income. To make things worse a tenant did a runner about 4 weeks ago and did not pay the outstanding rent. No hope of collecting it now. Now with the virus lock down restrictions, how can we get another tenant? We miss out on all government handouts because we are not wage earners (no $750), no longer have a business, not pensioners and not on new-start. So this rental loss has really hurt. Where will my vote go next election?

  18. Cesare

    Jackie and Mick need to go, just coming up with such a stupid idea like this proves what idiots they are, where are your brains. I’m a landlord and I have to pay my mortgage and holding and maintenance expences every mouth, who give these clowns the rite for my tenants to not pay rent and prove anything and live rent free. If this was to pass it will deverstate so many hard working owner and they would lose everything there work for. Oh and dump ass Jackie I’ve also been stood down with no income for who know how long and now using my saving to cover my cost just to get by, how about you give me your salary to cover my cost. Queensland needs a change of government, we need people with brains

  19. Brian Cronin

    This is not a fair result.. The aim should be for Gov to assist tenants in need. This is not Government assistance but rather a left wing attempt to control rental properties. The minister should go back to the drawing board and start again as the land tax rebates are quite unrelated to the brazen attempt to control the rental market..

  20. Cesare

    Jackie and Mick need to go, just coming up with such a stupid idea like this proves what idiots they are, where are your brains. I’m a landlord and I have to pay my mortgage and holding and maintenance expences every month, who give these clowns the rite for my tenants to not pay rent and prove anything and live rent free. If this was to pass it will deverstate so many hard working owner and they would lose everything they have work for. Oh and dump ass Jackie I’ve also been stood down with no income for who know how long and now using my saving to cover my cost just to get by, how about you give me your salary to cover my cost. Queensland needs a change of government, we need people with brains

  21. C. Scott

    My daughter is presently in Sydney in a rented apartment and owns a home in Queensland that she has rented out but was coming back up to in a short time when her baby was born and the tenants lease was up. The tenants have stopped paying rent as the husband says he has lost his job and they say they wont be going anywhere now given the new situation. The rent is (was) my daughters sole source of income and she can not pay her rent in Sydney now… My daughter is not working, has a baby due in three weeks and will be homeless and all because she worked VERY hard to have security with her own home which she owns outright.. Her big mistake was renting it out.. I guess now her only option is to go to Centerlink and have the Government take care of her and her baby… all because of this absolutely unbelievable stupidity by the Palaszczuk Government.. DEFIES ALL LOGIC !! ……. FOR GODS SAKES…….. GET REAL !! And no.. I cant help her.. I am just an old lady in a one bedroom rented unit and although only working part time have never missed paying my rent ever !!

  22. Adeline

    People who save in Australia to buy property are once again disadvantaged. They are providing homes for those who can’t/don’t/won’t buy their own. Owners have all the costs and all the risks. If the govt wants to treat owners, who have their own costs of mortgages, body corp, maybe some utilities, all repairs, council rates, land tax etc etc etc, like this, then they better start to build more govt housing, as property owners are basically subsiding the govt by renting out their homes to people who need somewhere to live. If owners get sick of this type of treatment, where will the people live? They can’t live rent free forever…or can they in Australia?! Wake up govt. Wake up Australia – take a look at some other countries in the world and get your act together!
    I rent out a property in Qld. I was told 2 weeks ago my job has gone forever. Why would I want to subsidise the tenant (and govt) and how can I – out of MY savings? How fair is that?
    I guess the people in govt who make these types of one-sided decisions are now forgoing their salaries to help the property owners? (joke)

  23. Rhys Williams

    This seems to be a completely one sided agreement and is beyond belief in the fact that there are no examples in it of either party working together but just a one sided set of rules made by people who it would seem only have one side in mind .

  24. Andrew Whitehead

    How did people this deranged get into this position of power. If thwy are not deranged then; they or their advisors are simply wanting to destroy the economy

  25. belinda and simon

    We are seniors relying on one rent income to supplement our super income each month We have not received any stimulus funds from the government. The qld government continues to protect tenants where the landlords are disadvantaged all the time. Tenants can leave on one weeks notice. Landlord cannot even turf out a tenant who continues not pay rent with a weeks notice. We had a tenant recently who just left not paying the outstanding rent and a lease with 3 months to go. No recourse for the landlord to recover money as tenant will not pay. Take the tenant to court with more landlord expense. Court orders to pay… tenants does not pay. This happens all the time Wake up Jackie Trad and your colleagues What about a landlord package instead..

  26. Helen

    Wow that’s some tenant rental protection package – guess that’d be called ‘squatting’ hey darl!!

    As SMSF unit owner, to still pay $10,000 landlord outgoings, SMSF shares devalued, dividends next to nothing, drawdown limit done, no income…

    Part pension retiree receives 2 x $750 supplements…..

    4week rental relief package not cover land or water rates let alone body corp,….land tax assessment not applicable to this property.

    Mum n Dad investors with mortgage no doubt in similar financial situation and even with Jobseeker still not survive to support two or more mortgaged properties let alone food fuel and medical.

    The wheels of economy still need to turn, everyone is responsible to help keep our essential facilities working, food, fuel, medical, educational and council infrastructure in order to maintain basic needs.

    Taxes are needed to pay Centrelink, hospitals, roads, community grants, and politicians.

    Squatters, that is the new term for tenants not paying rent, do not help all the wheels turn, by not paying any rent. How does the landlord survive if not able or possible to access Centrelink assistance?

    Buildings not maintained will become greatly devalued, the only winners will be those who can manage to scavenge thru the probable ‘fire-sales’ for dirt cheap squatter inhabited properties. 6months + further 6months 😬, those who have paid good $$ for property management rights will be tearing their hair out, rental property managers and rental property maintenance crews will not be needed, more Centrelink applications….

    Timing interesting for the proposal, Centrelink’s ‘new’ payments start end of April, after the ‘sitting’ makes a decision. History shows some rent must be paid and to be agreeable to all.

    Economy needs wheels….. people, daily essential needs, Centrelink, government, politics, politicians… hmm…. let’s think and remember next election.

  27. Terry & Cathy mcmullen

    Just gone through your last video again and want to thank you for all that you are doing for us landlords. Everything was for the tenant but at lease now we have some peace of mind. Keep up the good work and looking forward to your next video.
    We are basically not earning any income so how are we to may our mortgages. But the renters do not care about that.
    Thank you once again we can at least breath a little with the changes you have made.

  28. Eric

    Very one sided idea. Legislators apparently assume all landlords to be milionair philanthropists. I’m not! My job is on the line too. I have a negative geared property (hoping it will one day help me with my retirement) that I have to pay mortgage, body-corp, council rates ett for. I understand the need for solidarity but this way renters have all the rights. Don’t understand why renters don’t have to proof financial hardship which shouldn’t be hard to do.
    It’s like telling people to go to the supermarket and take what they need without paying claiming financial hardship

  29. Robb McWiggan

    This will be the most damaging & biased piece of legislation favouring tenants at the expense of landlord financial commitments ever and gives no protection to landlords.
    It allows for no substantiation of tenant hardship. It allows no rent deferment , just a NO PAY option & …you offer the tenant a further 6 month to live in my property rent free with no financial obligations whilst I am expected to continue to pay my mortgage.
    I won’t even be permitted to conduct repairs OR inspections of the property!
    QLD parliament, you are about to open the floodgates of mortgage default & fraudulent , unchecked tenant hardship claims.
    I’d be thinking that we should all move up to QLD from interstate for a holiday & opt in to your free for all , landlord subsidised , free rent for the next 12 months.
    What a GREATidea!! Cheaper than a hotel!!

    I implore you to balance out this piece of legislation to also offer landlord protection.

  30. Lyn Stanton

    Lyn
    It seems the Qld Gov Jackie Trad and co. are making self funded retirees like myself who have body corp commitments plus repair expenses to pay for regardless and if the tenants are NOT held accountable regarding their financial positions and if this legislation goes through next Wednesday without safeguarding the property owners incomes as well as making sure our Insurance covers any loss of rental. I believe a lot of Owners including myself will have to sell on a depressed market opening the way for big overseas and local investors to make a killing, on the backs of mum and dad investors like me who don’t have the capacity to own more than 1 property. It will probably mean a lot more people going to Centrelink for help.

  31. Wendy

    We rented our home out for a year together with furniture and the understanding was that we would be taking possession again at the end of the year. Our tenants have not paid us one cent of rent in the last 4 to 5 weeks. Does this draconian proposed legislation mean that we will not be able to take possession when the lease expires in June. This mean that we will not be able to give our children who both have lost their jobs a place to live because the tenants can refuse to move out even though the lease has expired.
    This is absolutely so unfair as it is our home and we need to assist our children who are suffering immensely from the effects of Covid.
    I am stunned that the Queensland Government can contemplate such unfair, draconian and one sided legislation.

    Wendy

  32. Pam Algie

    This is the most disgusting policy I have ever heard of. No consideration for landlords. If no inspections are done our property could be ruined and the tenant walks free at the landlords loss. Landlords are doing it tough also if you have no landlords you have no tenants. Help and consideration has to be given to both sides and this doesn’t do that.

  33. Kelly Gay

    Wow, QLD at the forefront of a world gone mad! How embarrassing for the state to have an idiot at the helm.
    This totally biased policy against ordinary working landlords will destroy lives and any possibility of future investment and growth.
    I am a single female attempting to contribute to my own retirement with one investment property. This new proposed policy totally disregards my years of hard work and self sustainability. It is an insult. Depending on the grace of my tenants, I risk being unnecessarily financially ruined and potentially homeless. It fails to acknowledge that investment properties tend to be owned by the banks with landlords indebted to them.

    If this outrageous policy is approved we may as all just put down our tools and wait for the government to offer more handouts.
    And when that doesn’t happens, that’s when things are going to get real scary for all of us.
    Most landlords (being actual human beings) would be willing to make some compromises in impossible situations, however this radical policy is sure to create bedlam.
    .

  34. Malcolm Brodie

    We have a couple of rental properties in Queensland fully owned but as self funded retirees we require the rent from these to live. Almost no interest from the bank, shares well down. No government handouts and plenty of bills. No different to those who have lost their jobs except we have to take all the hits. Hopefully government will reconsider this and make it a bit fairer.

  35. Smart Strata

    After a ground swell of support from the property community, pressure from the Ministers of Parliament and the threat of full page adverts to appear in the Courier Mail and all other major Queensland towns on Saturday 18th April, the Government relented and agreed to soften the changes. Here is a copy of the changes agreed –

    • Rent payments and unpaid rent: Property owners and tenants can now agree on the terms of reduced rent and deferred repayment requirements.
    • Financial hardship requirements: The combined income of tenant/s must have reduced by more than 25% as a direct result of COVID-19 or where the rent amount exceeds 30% of income/s and tenant/s cannot afford to pay the rent.
    • Substantiation of financial hardship: Tenants must provide the same level of proof of income as is required at the start of the tenancy to seek a rent reduction.
    • Entry requirements: The Government will provide clear guidance to ensure access for essential repairs and maintenance, the sale of a property and virtual inspections.
    • Break lease: To qualify for the Government’s break lease provisions, tenant/s must be in severe financial hardship which is defined as a 75% reduction in combined tenant/s income and have less than $5,000 in savings.
    • Extension of a tenancy: A fixed term tenancy will be automatically extended to 30 September 2020 unless agreed otherwise.

    We understand that Minister De Brennie has undertaken to publish revised guidelines for tenancy disputes before legislating a backdates ban on evictions when Parliament sits on Wednesday.

    We congratulate the REIQ on a magnificent effort to pressure the Government to relent and amend the proposed changes. There is no doubt had the REIQ failed and those measures passed by Parliament, we in the property community would have been in for extreme times, like we have never previously experienced.

  36. Debra Wager Russo

    I am very cranky this is one sided, favouring the tenant (again) with no regard for the landlord and placing them in a hard situation as they have to pay the bank and are possibly without work themselves. Who ever put up this proposal has no and has given absolutely no thought to how the landlord is going to manage!!!!