Tenants forced to terminate their lease due to the economic impacts of the coronavirus pandemic have now been granted reduced penalties, with a two-week cap placed on break-lease fees.

With 27% of the Lismore population living in rented dwellings, and a median rent of $250 a week, these changes mean good news for tenants and landlords too.

The change to break fees — set at four weeks’ rent if less than 25% of a fixed-term agreement has expired — was one of several amendments put forward by Labor at an emergency sitting of NSW Parliament on Tuesday. 

Previously, only renters more than halfway through a fixed term would pay a penalty of two weeks or less.

Tenants who are unable to negotiate a rent reduction with their landlord can seek to terminate their lease through the NSW Civil and Administrative Tribunal (NCAT), which will limit compensation to the landlord at no more than two weeks’ rent.

Lismore MP Janelle Saffin said the push to create a Rental Hardship Fund came after she was approached by local Mum and Dad investors and real estate agents highlighting how the Government’s initial lack of action and then city-focused measures ignored country people.

“And also tenants, through no fault of their own, found themselves without funds,” Ms Saffin said.

The Lismore Electorate has 7553 rented dwellings, representing 17,657 tenants (27% of the population) and 6941 landlords. 

Local real estate agent Sharon Dowling from The Professionals said she hasn’t yet seen a “massive impact” of Covid-19 on local renters.

“Before the government increased the benefits at the start of the pandemic, some people came in in a bit of a panic, but it’s ok now,” she said.

“We’ve also had a couple of landlords offer to pay water consumption for their tenants.”

NSW Labor’s Rental Hardship Package makes use of the Property Statutory Interest Account, which has approximately $250 million in funds.

Funds from this account can then be directed into the Property Services Compensation Fund, which will fund the Covid-19 Rental Hardship Fund for struggling tenants and landlords.

The Fund will supplement the NSW Government’s land tax relief package that covers the 16% of landlords who pay land tax in NSW.

To receive assistance, the landlord must demonstrate that a tenant has suffered a loss of income of 25% or more, that the tenant has less than $5000 in savings, and that they are paying more than 30% of the tenant’s income in rent to the landlord.

The landlord must also reduce the tenant’s rent. The Fund makes a maximum amount of ‘top up’ payments of $2500 available per tenancy.

To read the NSW Labor Hardship Fund amendment, click

https://www.parliament.nsw.gov.au/bill/files/3745/OPP%20c2020-042C.pdf