It goes without saying, the COVID-19 pandemic has affected many people’s incomes.

To help tenants who are financially affected, the NSW Government introduced a 60 day stop on landlords seeking to evict tenants due to rental arrears as a result of COVID-19, and longer 6-month restrictions on evictions.

In recognition of this, on 16 May 2020, NSW Parliament gave the Government the power to assist landlords who are called upon to provide support to their tenants economically affected by the COVID-19 pandemic.

After considerable debate, Parliament determined that in the circumstances where a landlord is called upon to assist a tenant with a rent reduction, then the landlord is entitled (if the specified criteria is satisfied) to receive a $2,500 subsidy from Government.

This is good news for landlords, particularly for those who have financial obligations to their lender, or are relying on the rental income as their own income.

By doing this, Parliament has acknowledged, that accompanying its expectation that landlords assist tenants during these difficult times, there also exists an obligation to support landlords.

Ultimately by supporting the landlord, the Government is supporting tenants.

In a recent Real Estate Institute of New South Wales (REINSW) press release Tim McKibbin, CEO points out the Parliamentary intent could not have been clearer. “Parliament set out the criteria for entitlement to the assistance and identified the source of the subsidy funding,” he says. “It is noteworthy that the money will come from a fund generated from the property industry.”

He goes on to say there is unquestionably a need for landlord support in NSW as there is in the other states who have already triggered the identical support that Parliament intends for NSW landlords.

However, it appears the financial support for landlords is slow in forthcoming.

“This is what we know: the need exists, the money exists, Parliament wants it to happen and it replicates what has already happened in the other states. What we don’t know is why it’s being delayed,” says Tim.

The REINSW is calling on the Minister to prioritise this Parliamentary directive, bring the support package to life and in doing so, address some of the distress in the residential rental market.

We are supporting this call to ensure any of our landlords who may find themselves in a position where they need to support their tenant with a rental break can quickly access this financial assistance.

We are regularly updating the owners of properties we manage, but if you want to know more about this support, or are concerned in any way, please call us on 02 4956 9777, send us an email to mail@newcastlepropertymanagement.com.au or pop into our Cardiff office.

For general landlord tips and ideas, take a look at our Facebook page.