* be mindful of offering rent reductions without checking on your insurance cover first
* understand the impacts of using the 'deferment' option with your loans as the funds may well be capitalised meaning your loan will increase exponentially
* the optimum way to handle the situation will be through a good property manager who should be able to provide good procedures
* ensure you document every agreement and include a check-in option – for example – don't just agree to a full / set six month 'rental holiday' as your tenants' situation could change (for the better) very quickly.
* a ban on evictions due to non-payment of rent
* a freeze on rent increases.
It also includes land tax discounts for landlords who provide rental relief to their tenants over the next three months. The scheme was voted into action on Friday 24 April 2020. Further details can be found here.
As part of the relief package, the government will provide a discount of up to 25% on land tax to landlords. Savings must be passed on to tenants in the form of rent relief.
This means if you're a commercial tenant in Queensland and your landlord is eligible for land tax relief, you can negotiate a rent reduction or rent holiday for up to three months.
Find out more about the Queensland government's support for landlords and tenants.
Although no legislation has been passed yet, it's expected there will be a moratorium on evictions for six months for businesses that are struggling to pay rent. Landlords are also encouraged to provide rent relief or holidays to businesses in financial distress.
The Victorian Government has also introduced a $500 million Business Support Fund to support small businesses in hard-hit sectors. Eligible businesses can apply for a one-off $10,000 grant, which can be used towards costs such as rent. Find out more about the Victorian Business Support Fund.
* Category 1 – businesses that have been partially or not affected
* Category 2 – businesses that have been significantly affected (at least 30% reduction in business income)
* Category 3 – businesses that have been forced to shut down operations due to COVID-19 health restrictions.
Details regarding what support will look like have not yet been clarified, but the ACT Government is urging landlords and tenants to work together to reach an agreement that allows the business to bounce back when the time is right.
Stay up-to-date on commercial tenancy relief in the ACT.
Author: Debra Beck-Mewing
Debra Beck-Mewing is the Founder and CEO of The Property Frontline. She has more than 20 years' experience in property investing, Australia-wide and has used a range of strategies to build her property portfolio including renovating, granny flats, sub-division and development. Debra is skilled in identifying development opportunities, and sourcing properties that have multiple uses and multiple exit strategies. She is a Qualified Property Investment Advisor, licensed real estate agent and also holds a Bachelor of Commerce and Master of Business. As a passionate advocate for increasing transparency in the property and wealth industries, Debra is a popular speaker on these topics. She is also an author, podcast host, Editor in Chief of Property Portfolio Magazine and participates on numerous committees including the Property Owners' Association.
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Disclaimer – This information is of a general nature only and does not constitute professional advice. We strongly recommend you seek your own professional advice in relation to your particular circumstances.