AS the Australian Government decides whether to offer rent assistance to eligible tenants, keep in mind there are already several options out there for both sides of the rental market.
Ray White Group CEO I Property Management Emily Sim has some key advice for landlords and their tenants to protect themselves during uncertain times.
Rent payments
For landlords, Ms Sim stressed the importance of having landlord insurance to protect against the loss of rent. If you haven’t already taken out landlord insurance then Ms Sim said it’s not too late as policies were still available and were an absolute must for rental property owners.
For tenants, she also recommended looking into Commonwealth welfare payments to help get by in the event of lost income.
“If you’re a tenant and you lose your job, applying for Newstart will also open up opportunities for rent assistance and depending on your family situation you may also be eligible for the Family Tax Benefit A or B,” Ms Sim said.
“The Federal Government also announced that they are giving individuals the opportunity to access $10,000 of their superannuation this and next financial year.
“These are all things that tenants and landlords can do to help themselves with what we expect to be challenged rent conditions.”
Vacant properties
Purely for landlords, Ms Sim also said it was important to work with property management to quickly and effectively fill vacant livings.
“Other things for landlords to know is if they have a vacant property they need to be working with their agent on how the agent can lease property quickly,” she said.
“At the moment we’re unsure what lockdown means for property management in terms of essential services and if it falls into non-essential services we can expect leasing of vacant properties will stop.
“Landlords should do everything necessary to get their property leased including reducing rent because if there is a future lockdown they will lose the ability to lease these vacant properties. For example, taking a lesser rent and shorter lease now might help them avoid having to make mortgage repayments over the lockdown period.”
Open communication
Most importantly, tenants should keep an open channel of communication with the property manager overseeing their rental. Ms Sim recommended forgoing emails and going straight to the property manager to speak face-to-face or on the phone.
“If tenants have lost their jobs they should speak to their property manager but don’t send emails - we’re looking for open lines of communications if tenants are concerned,” she said.
“Have an open dialogue about what your situation is because the property manager will want that information to be able to present accurately and honestly to the landlord so they can make informed decisions.
“Where there’s more contact, everyone feels more comfortable.”
