A hold on evictions for renters

The Prime Minister has announced new measures to help renters. Evictions will be put on hold over the next 6 months for commercial and residential tenancies in financial distress, who are unable to meet their commitments due to the impact of the coronavirus.

The Australian Government, together with the states and territories have agreed on a common set of principles:

  • a short term, temporary moratorium on eviction for non-payment of rent to be applied across commercial tenancies impacted by severe rental distress due to coronavirus

  • tenants and landlords are encouraged to agree on rent relief or temporary amendments to the lease

  • the reduction or waiver of rental payment for a defined period for impacted tenants

  • the ability for tenants to terminate leases and/or seek mediation or conciliation on the grounds of financial distress

  • commercial property owners should ensure that any benefits received in respect of their properties should also benefit their tenants in proportion to the economic impact caused by coronavirus

  • landlords and tenants not significantly affected by coronavirus are expected to honour their lease and rental agreements

  • cost-sharing or deferral of losses between landlords and tenants, with Commonwealth, state and territory governments, local government and financial institutions to consider mechanisms to provide assistance

Commercial tenants, landlords and financial institutions are encouraged to talk about short term agreements.

More information about this will be available this week.

Information sourced: https://www.business.gov.au/risk-management/emergency-management/coronavirus-information-and-support-for-business/a-hold-on-evictions-for-renters

Kate Shaw