The Andrews Government has introduced a bill to extend the moratorium on rental evictions to the end of March 2021, a full six months from its initial expiry date of September 29. The moratorium prohibits landlords from evicting tenants, even if they’re in serious arrears, because of Covid-19 related hardship. The bill also marks the commencement date of the RTA as April, 2021. 

As the Managing Director of Infolio Property Advisors in Melbourne, I’m standing strongly behind the REIV who’re advocating for equitable measures to be in place for landlords. Currently, this bill gives tenants more power in the equation, which, I believe, is based on the incorrect assumption that property ownership signifies financial stability. Landlords are suffering from financial hardship and loss of employment at this time, in equal measure. They are unable to meet financial commitments because of tenants being in arrears, and an extension of six months turns up the dial on the pressure cooker – and landlords are unfairly affected.

Currently, at Infolio we represent a landlord who wants possession of her investment property in order to sell. She’s pregnant and due to COVID her and her partner are down to a single income. The rent on the property is less than the mortgage and they want to free up capital, but they can’t. The moratorium prevents it. We have another case, too, where we secured an investment property for a client in April, put a tenant in the property but no rent has been paid. There’s very little action we can take except join the queue for mediation. I acknowledge that many of these situations are complex, but my job is to advocate for my clients and that’s difficult when this moratorium is slanted against them.

The industry needs to move. And even if that movement is highly restricted, it will, at least. release some of the pressure that’s currently building up around rental tenancies. I don’t believe that the REIV is asking for too much by calling on the government to allow one-on-one inspections. I do believe that housing is, and should be considered, essential.  At Infolio, our current vacancy rate is sitting at 9% – the highest it’s been for 13 years. This is because no one can move. We can’t show properties. We can’t expect a tenant or a buyer to make such a large and life-impacting decision without physically seeing a property first. In short, without inspections buying and leasing can’t proceed. As the REIV President Leah Calnan has said: “We are talking about shelter and making the biggest financial commitment for your lifetime. The government is turning a blind eye to the significance of a property decision in people’s lives.”

We need a workable and proactive plan in place for a return to real estate transactions otherwise the fallout of the moratorium may prove catastrophic for both landlords and tenants. At Infoilo our current arrears are at 4.16% – also the highest number we’ve seen for 13 years. Around $60+k of our current arrears are 90+ days overdue and our property managers are bogged down in VCAT and mediation hearings in a system that is completely overloaded. The REIV is quoting that VCAT currently has a backlog of over 4,000 cases. I hate to imagine what that figure will be after 6 months. As is, the moratorium places undue pressure on landlords and is not equitable. I believe the government needs to revise their strategy and provide equal protections for landlords and tenants. The stability of the Victorian property market depends on the actions the government takes now.

Lauren Staley and Infolio Property Advisors specialise in buying properties in Melbourne’s south-east and bayside, including inner city suburbs and the Mornington Peninsula. To learn more about Infolio’s advocacy services, visit their website: infolio.com.au