Victoria - Moratorium on Evictions

LSbah22 on 15/04/2020 - 22:53

Hello forum members

I am a sporadic poster but avid reader of the forums.
I am in a bit of a predicament and am unsure how to read the new rules on eviction moratorium.

I own a house in a Melbourne suburb which we purchased in May19. We had a tenant in place in july19 with a 12 month lease.

We had purchased the property to demolish an rebuild for which we started the planning process in Nov19 with plans drawn out then.

The tenants lease expires on the 4th of July 2020 and we would ideally want the demolition company within a week so we can start the build process. My tenant has not paid me rent and has also requested 70% decrease (he runs a home massage / physio setup and is impacted). Although the non payment of rent will hurt, my concern now is I am unable to evict him at the end of lease and may have to wait until this moratorium is over before I can start my process. This has additional consequences for me. We purchased the property to allow for my older child (4 now) to attend a school which falls within the zone. Any delays may compromise this.

So my question, does the moratorium include or preclude end of tenancy evictions. If it includes, what avenues may I pursue.

I have read through tenancies Victoria publication, fair trading NSW publication and more but the answer is not conclusive. Not covered anywhere at best. Does anyone have a feel for this.
I would really appreciate any feedback.

Home & Garden

Comments

  • [Deactivated] on 15/04/2020 - 23:28
    -1

    Did you ask your Real Estate agent? What did they say?

  • Sbah22 on 15/04/2020 - 23:49

    Spoke to her late this arvo. Said it is unclear

    • [Deactivated] on 16/04/2020 - 00:25

      That's the problem - no one knows what's going on.

      Considering they can no longer afford the rent and that their lease expire soon, would the tenant be willing to move our earlier?

      Under these new laws, tenants will be able to apply to break the lease early if they are experiencing financial hardship. Fees for breaking a lease will not apply. The process for claiming their bond remains the same.

      Edit: Out of curiosity, were you officially informed that your tenant was going to be running a business from home? Did they provide you with a copy of their public liability insurance policy?

      • Sbah22 on 16/04/2020 - 01:28

        No was not informed..
        The guy is a tricky cat…
        Hasn’t paid the rest but would not allow a surveyor 20 minutes in the front lawn to undertake some feature surveys…
        They did not even have to enter the house…just the front yard…but he refused

        • [Deactivated] on 16/04/2020 - 01:51
          +1

          What was his declared source of income on his application form?

          • Sbah22 on 16/04/2020 - 06:59

            @[Deactivated]: From what I can recall, it was they ran a massage business

      • Typical16-bitEnjoyer on 16/04/2020 - 08:19

        The tenant isn't required to provide that.

        It's pretty simple. You make it clear that businesses are not allow from the premises, for whatever reason, and make it a specific clause in the lease.

        Not in the Lease? You can't do shit.

    • twadds on 16/04/2020 - 02:57
      +1

      You'll have to wait for Victoria to announce and pass the new legislation. Anything your real estate agent tells you now would only be a guess. It seems you'd be out of luck in WA but in NSW you could evict terminate the tenancy at the end of the lease, only time will tell what happens in VIC.

      • Sbah22 on 16/04/2020 - 07:00

        Thank you very much for your reply

  • ozhunter on 16/04/2020 - 00:10
    +1

    https://imgur.com/a/k9EfRzI

    This is for WA, but I'd assume something similar. Bullet point 3.

    • Sbah22 on 16/04/2020 - 01:24

      Thank you…that would be sub optimal for me…but I see it will likely go this way

      • brendanm on 16/04/2020 - 14:21

        Wow that's pretty rubbish.

  • tsunamisurfer on 16/04/2020 - 00:28
    +4

    God that is unfair, if the tenancy agreement has ended as part of the original agreed timeframes, the tenant should be forced out if the landlord wants to regain possession of the house.

    • [Deactivated] on 16/04/2020 - 00:30

      It is illegal to do so in WA . Not sure in Vic.

      • p1 ama on 16/04/2020 - 00:52

        (del)

    • p1 ama on 16/04/2020 - 00:53
      -5

      God that is unfair

      Is it also unfair that Qantas is probably not going to pay me a dividend this year?

      p1 ama on 16/04/2020 - 00:53 (Collapsed - Offtopic. Show)
      • brendanm on 16/04/2020 - 14:22

        No. Op has a contract, they are being forced to extend the contract.

  • Meho2026 on 16/04/2020 - 03:03

    I think the VIC situation is the same as NSW.
    This is how I understand it.
    Some tenants think they can just stop paying rent and are protected from eviction but that’s not correct.
    The government requires tenants and landlords to enter in to a negotiation. Ideally an arrangement is reached on a reduced rent that both parties can agree on.
    It basically means a tenant refusing to pay rent or a landlord refusing to lower the rent is considered not to have followed the required process.
    In these situations or where negotiations have been exhausted and no agreement is reached then it’s off to the state tenancy tribunal, who will make a binding arrangement.
    In VIC this process is being fast tracked for quick resolutions.
    The Moratorium only applies to tenants paying rent not those refusing to pay.
    The reduction in land tax is a load of bullshit because the only landlords paying land tax are the ones with mega expensive units or houses. The typical run of the mill property investor, owning a regular 1-2 bed unit in an average suburb gets nothing if the property value is below the land tax threshold.

    • Sbah22 on 16/04/2020 - 07:52

      Thank you. The more pertinent question for me is can they stay there after expiry of the lease. Appreciate it is not clear.
      I just need to start building my house. I could live with the lost rent (although will pursue my amount due).
      We sold our house and settled late Jan and renting while we demolish and build what we purchased….I think we could be renting for a while…while getting little or no rent for our property (my yield is sub 1.5% at full rent as the property has a small 50 year old house on a large block..so essentially I am paying for land that my children are not running around on haha)…I will benefit from land tax reduction but that is not the pecuniary benefit I am after….can only muse at the situation….

    • Typical16-bitEnjoyer on 16/04/2020 - 08:23
      -1

      @Meho2026 Majority of your post is wrong. How do we know you're wrong? There's no legislation. You're lifting small tidbits from various sources speculating.

      • Meho2026 on 16/04/2020 - 15:43
        -1

        Yeah well, if you know better, lets hear it instead of discounting everything I said.

        Residential Tenancies Amendment (COVID-19) Regulation 2020 under the Residential Tenancies Act 2010
        April 15th 2020

        From Fair Trading NSW
        "A landlord is required to negotiate a rent reduction with the tenant in good faith in the first instance, and can only seek to give a termination notice or apply for an eviction after the interim 60-day stop if it is fair and reasonable in the circumstances of the specific case.
        Fair Trading will be able to assist landlords and tenants try to reach an agreement if needed.
        At any time during the 60 day stop and the longer six month restrictions, landlords can still apply to the Tribunal at any time to take possession of a property if they are suffering undue hardship."

        "The new laws allow landlords, after the 60-day stop, to seek to terminate a COVID-19 impacted tenancies for rental arrears but this can only occur if they have tried to negotiate a rent reduction with the tenant in good faith and seeking a termination is fair and reasonable in the circumstances of the specific case."

        "NSW Fair Trading provides a dispute resolution process that landlords and tenants can use if they can’t reach an agreement themselves.

        Fair Trading will request evidence from the tenant about their previous income and current income from all sources, including any Government income support. Information will also be sought about any application the tenant has made for income support.

        Tenants need to have an idea of how much rent they can pay when considering negotiations. Fair Trading will then contact the landlord to seek a mutual agreement on a temporary arrangement for the payment of rent."

        "Once the intermin 60 day stop has ended, a tenant(s) who is still unable to meet their rental obligations due to COVID-19 can only have their tenancy terminated on the basis of rental arrears if the landlord has attempted to negotiate reduced rent in good faith but the tenant has failed to do so."

        "The tenant’s lost income per week is …less than 25% of the tenant’s original income.
        The stop on termination notices and applications for eviction orders due to rental arrears does not apply to this tenant."

        • Typical16-bitEnjoyer on 16/04/2020 - 15:47
          -1

          I'll stop you there.

          "after the interim 60-day stop"

          Now re-read your original post.

          That is all.

  • BOGOF on 16/04/2020 - 06:36
    +2

    It looks like Queensland will have the most draconian measures against landlords, the main ones are….

    Tenants can ask for rent reductions without proving any hardship, and if a tenant chooses not to pay rent, they cannot be evicted for upto 12 months.
    An automatic extension of rental lease for an additional 6 months on expiry
    Tenant can give 7 days notice to break contract without any penalties

    https://www.realestate.com.au/news/coronavirus-anger-over-go…

    • stratbargain on 16/04/2020 - 08:17
      +1

      Wow. That is ridiculous.

    • Typical16-bitEnjoyer on 16/04/2020 - 08:22
      -1

      It's a fear mongering article by REIQ. Who represent Landlords. 'Nuff said.

  • Typical16-bitEnjoyer on 16/04/2020 - 08:21

    Its a moratorium. Look up the definition. Wait for the legislation to pass.

    • Sbah22 on 16/04/2020 - 08:49
      -2

      Thank you Zeggie
      This post is helpful as well as you seem like someone who maintains a likable tone at all times.
      I will look up moratorium - unfortunately my vocabulary did not expand past year four…my final year of education

      • Typical16-bitEnjoyer on 16/04/2020 - 10:35

        I try and answer questions concisely and directly. Whether you like my answers or suggestions is irrelevant.

        Unfortunately you are in a position many, many other face.

        The restriction is temporary. There is nothing you can really do, except for waste time, until legislation has passed. Then you will know what the goalposts are, where they are, and what options are available to you.

  • jimbobaus on 16/04/2020 - 08:26
    +2

    If the problem existed prior to the moratorium you are still able to evict.
    Also the government is introducing a streamlined fast process for this kind of thing in the next week or so.

  • wannagrababargain on 16/04/2020 - 12:30

    When you ask a tenant to vacate in VIC there must be a reason and the reason determines the notice period. This will all depend on if the moratorium in VIC is a blanket ban on evicition for ALL reasons or the ban is on evictions for only certain reasons. The legislation is also trying to work in a support package within all of that to make sure that the worst off can fare a bit better. The other side of the coin is what does the tenant want to do. Maybe they would like to be 'let off' the fixed term earlier if they have somewhere else to live. I don't know, as Scomo said you have to communicate and work together..

  • brendanm on 16/04/2020 - 14:24

    Just start the demolition process.

    • Sbah22 on 16/04/2020 - 15:37

      I wish I could :)
      But i do see both sides of the coin as to why the moratorium is important in times like these as well as have sympathy for landlords (I have other investments that are impacted)…
      it is just the lack of clarity is annoying.
      What I take from everyone's feedback is to wait and watch

  • Choc0 on 16/04/2020 - 22:22

    It's not an eviction, it's you allowing them to complete their contract as agreed.

    Just make sure your agent sends them a notice to vacate, as you (the owner) intends to occupy the property.

    • wannagrababargain on 17/04/2020 - 12:35

      If the fixed term rental contract stated that the owner intended to occupy/demolish the property at the end that would strengthen the case too (and be only a 14 day notice period).

      The moratorium applies to landlords, I guess if you decide that you don't want to be a landlord anymore then it won't apply to you.

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