Yesterday, the NSW government finally announced a new rental relief package which aims to protect both commercial and residential tenants and provide support to landlords.
The $440 million support package was accompanied by a moratorium on evictions for the next six months.
The NSW Government has announced a new rental relief package which requires landlords to negotiate with tenants, instating a moratorium on evictions.
For any household who has lost at least 25 per cent of its income due to the pandemic, landlords are now required to negotiate rental payments in good faith with tenants. For these households, there is also a moratorium on forced eviction due to rental arrears, with a 60-day moratorium on any current or new eviction applications.
“The reality is the more that a landlord looks after their tenant, and the more that a tenant works with their landlord, the better off that both will be as we move through this pandemic,” the NSW Treasurer Dom Perrottet described.
As part of the package, up to $10 million will be allotted towards mediators for cases where tenants and landlords can’t reach an agreement. Under the protection of the National Civil and Administrative Tribunal, tenants will be safe from eviction until negotiations have concluded.
Any tenants in arrears due to the pandemic will also not be blacklisted, however, they will still eventually have to pay the rent back.
For landlords whose tenants are experiencing financial stress, the Government is offering to waive land tax or provide a rebate of up to 25 per cent, as long as they negotiate reduced rates with their tenants.
Out of the $440 million, $220 million will go to this support package, whilst the other half will go to the already announced commercial rental relief scheme.