- Support is welcomed by REINSW CEO
- Best case scenario for landlords is a "zero position"
- Has criticised the "onerous" administrative process when applying for support
As Sydney continues its extended (9+ week) lockdown, NSW’s real estate body has called upon the government to make sure rental protections remain accessible for tenants while providing landlords with adequate support.
“This time around there has been some recognition that this financial support is Government’s duty to provide, instead of the burden falling on landlords,” said Real Estate Institute of New South Wales (REINSW) CEO Tim McKibbin.
“However, it’s worth noting that the best-case scenario for landlords under the current support package is a zero position and to achieve this requires them to navigate a series of administrative challenges.”
Tim McKibbin, REINSW CEO
Mr McKibbin added that landlords must educate themselves about the grants program, noting that consent must be attained from tenants when applying correct as their personal information is sent to Fair Trading. He is critical of the “onerous” process.
“It asks mum and dad investors to unravel considerable red tape, and it relies on landlords providing the reduced rent upfront. Then the challenge of reclaiming the lost income begins with break-even the best possible reward for their effort.”
Once the maximum $3,000 threshold is reached, the support is exhausted, meaning financial stress will return to impacted tenants and landlords.
“In this scenario, it’s unclear whether this financial stress will be borne by the landlord, tenant or both, should Government not commit to further support in the event of lockdown being extended again.”
“Against this uncertainty is one constant: the bank repayments mum and dad investors must make have deadlines attached.”
Mr McKibbin noted that given the uncertainty ahead, it is important for the NSW government to recognise there must be ongoing dual support in the rental area to support both landlords and tenants.
“Rental vacancy is tight, those looking for places to rent have limited options, so it makes sense to encourage people to invest in property and provide rental accommodation.
“Unfortunately, when there’s too much politics at play, the opposite is often the result.”