- Six-month transition beyond mortarium ending
- Includes repayment plans
- REINSW CEO says greater clarification is needed
The NSW Government has announced it will support tenants beyond March 27, however, the Real Estate Institute of New South Wales claims the State Government has not provided enough clarity on what “support” entails for both tenants and landlords.
Kevin Anderson, the Minister for Better Regulation and Innovation, announced he would introduce legislation that would facilitate a six-month transition starting from when the moratorium ends.
Under this legislation, tenants and landlords will be supported to enter repayment plans. If tenants fail to meet the terms of the plans, then they can be evicted.
Additionally, measures will be included to prevent COVID-impacted tenants from appearing on renting blacklists.
“Our number one priority has always been to keep people safe and in accommodation, and introducing a transition process instead of bringing this support to an abrupt halt is by far the most fair way to ensure this happens,” said Mr Anderson.
However, Tim McKibbin, the CEO of REINSW, says the measures are not detailed enough.
“At face value, this appears to be an appropriate attempt to respond to the improving economic picture and resilient employment market. But, as ever, the devil will be in the detail,” Mr McKibbin.
“Consumers and the real estate industry now await the fine print of the revised scheme, including new information on notice periods, repayment plan guidelines and other specific details in order for tenants, landlords and property managers to ensure they’re being compliant.”
Mr McKibbin continues to say the Residential Tenancies Act does include hardship provisions. He says it is unclear how new legislation can solve potential problems that the current provisions cannot.
“Ideally, any new legislation will pave the way for tenants to feel secure while ensuring landlords receive the income to which they are entitled, and which they depend upon,” said Mr McKibbin
“But we all need clarity on the fine detail urgently because the current arrangement ends in a few weeks, and Government intervention can create a bureaucratic burden on tenants and landlords.”