There is a wave of confusion within the property industry over the ban on six-month evictions, with agents still trying to evict tenants and no laws in place to stop them.
On Wednesday, Prime Minster Scott Morrison said the six-month ban on rental evictions was a matter for state and territory governments, having announced a national moratorium two weeks ago.
Hayley and Samantha, who did not want their surnames used, both worked as hairdressers and also study business part time.
Two weeks ago their income dried up and rent on their two-bedroom Sydney home became unmanageable – they are now facing eviction.
“Basically from two weeks ago we’ve had no income coming through,” Hayley, 32, told The New Daily.
“Because the government decided they were going restrict [hairdressing] bookings to 30 minutes. We were like, ‘Well we can’t do it’.
“They changed the law back but most of our clients were too scared, so we had gone from having clients booked in to nothing.”
They contacted their real estate agent asking for a reduction with rent as they start to apply for new jobs, but because both were originally from the UK, they are unable to get government assistance.
“We contacted the agency and said this is our situation. Now he didn’t really take it well. He wasn’t nice to us. He said go home if you can’t support yourself.
“He is not a nice person on the phone, he has no empathy. Samantha was in tears.”
They pair can’t get back to the UK and are now scrambling to find new jobs – a hard task when hundreds of thousands of Australians are also looking for work.
Initially, the agent threatened to evict them after 14 days if the rent wasn’t paid.
After some discussion, he then offered a reduction on the rent they owed, but said if they can’t pay, they will have to vacate the property.
“We will apply the 50% reduction from 25/3/20, so a payment of $650 will take you up until today and out of arrears,” the agent said in an email on Wednesday.
“If this cannot be paid, we have no other option than to issue a notice of termination.”
Hayley and Samantha have no way to pay the $650.
“We’re trying to think of solutions, and we are going to try every avenue. We don’t want to not pay rent.
“I’m just hoping to the universe that something will get better.”
Tasmania is the only state to pass laws banning evictions for three months.
If tenants can’t pay rent, the debt is accrued for the moratorium period and once it passes, they face eviction.
Queensland is currently the only state to offer a one-off rental relief package.
Announcing the moratorium, Mr Morrison asked landlords and tenants to ‘work it out’.
But this is a new world, and many are struggling to find ways to meet their commitments.
Miguel Bernardo lives in Victoria and recently lost his job as the head chef at a café.
He’s waiting for Centrelink, and has asked his agent to negotiate with his landlord on a short-term rent reduction.
“Since the beginning, I’ve had great difficulty with basic communication. Making sure the landlord is getting my messages, that he is aware of my proposal, and to hear what he has to say,” Mr Bernardo said.
“There’s no direct answer. Instead the real estate advises me to go to Centrelink, to the bank, to find money to pay the rent for them.
“The issue of reducing the rent, how we go forward is never addressed.”
The agent told Mr Bernardo the landlord would not negotiate on rent until he had exhausted all avenues – including accessing his super and contacting LaunchHousing – a homelessness service.
An email from her read: “YES the owner is aware of your situation and YES we all have to work together and YES you have to exhaust the help that is available to you then we can discuss deferred payments, reductions, etc … the owner is FULLY AWARE of your situation.”
“He WILL NOT agree to anything until all options have been exhausted. He too has financial stress during this time and financial commitments he MUST meet.”
Desperate for a job and worried he’ll be kicked out, the single father has started a free online accounting course.
“All I do is fill out hardship forms and try to negotiate with the electricity company, with banks, I am doing everything. I would have expected some reply from the landlord in regards to the rent.”
Property mangers have also been using secret online groups to share tips on which tenants can still be evicted through the next six months.
There is confusion over if tenants who cannot pay rent due to normal financial hardship can still be evicted – or if it is everyone for the next six months.
“Can I execute my warrant that’s been forward dated for this week, wonder? Already 58 days in arrears before this,” asked one.
“September will be the best time to move! So much Stock available,” joked another.
Real Estate Institute of Australia president Adrian Kelly said he was ‘disappointed’ the federal government had not given uniform guidance on residential tenancies.
“I am disappointed that a uniform approach could not have been agreed for all Australians,” Mr Kelly said.
“We now face the potential situation where Australians will be treated differently depending on where they reside.
“This will add to the confusion and most likely there will be the misinterpretation of messaging.”
Mr Kelly said the rationale that commercial tenancies have a wide national impact, in this case economic, applies also to residential tenancies.
“For residential it is a social as well as economic impact – after all, we all live in dwellings and not all of us either own or lease commercial property,” he said.
“REIA requests that further consideration be given to a national approach to residential real estate.”
