How to get cheap rent: Government introduces 'fairness formula' so tenants impacted by coronavirus can renegotiate leases and avoid eviction
- Queensland Government last week proposed legislation to protect tenants
- The proposal was widely denounced by property owners and real estate sector
- New laws will include a conciliation service to resolve issues
- The tenant must lose at least 25 per cent of their income to qualify
- Learn more about how to help people impacted by COVID
A 'fairness formula' will be introduced in Queensland to help struggling tenants and landlords renegotiate leases amid the coronavirus lockdown, after proposed new rental laws were widely criticised.
The rental market is one of several sectors that have been impacted by the global health crisis, with many tenants unable to make payments after losing their jobs.
The state government last week proposed a set of measures to help protect tenants who cannot pay their rent from eviction and if their lease expires during the crisis, but landlords complained those steps were too much in favour of renters.
The state government last week proposed a set of measures to help protect tenants who cannot pay their rent from eviction and if their lease expires during the crisis
New guidelines are expected to be released on Wednesday after the legislation is passed, The Courier-Mail reported.
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'While we expect most tenants and property owners to come to an agreement, where this is not possible, we will provide a compulsory, free, fair and independent conciliation service to resolve issues,' Housing Minister Mick de Brenni said in an email on Monday.
Under the revised proposals, tenants must be able to prove they have lost at least 25 per cent of their income, or that their rent exceeds 30 per cent of their income, to access COVID-19 rental relief measures.
A tenant would also not be able to break a tenancy agreement without being able to prove a a loss of at least 75 per cent income of income.
Housing Minister Mick De Brenni said the measures will be introduced in state parliament on Wednesday to help renters and landlords negotiate on reductions
The original legislative framework was widely denounced by the real estate sector, which said tenants - who could originally claim relief without proof - were being protected at the expense of landlords.
More than 400,000 letters of complaint were received by the Labor Government.
Mr De Brenni said the government had made changes that aimed to strike a better balance between protecting the rights of landlord and tenants.
'Tenants and property owners in significant financial distress are also being supported through a $20 million rental grant package, announced with the framework over a week ago,' he said.
Real Estate Institute of Queensland CEO Antonia Mercorella said they are satisfied with the revised framework.
'It also ensures stability for the Queensland property market as well as for consumer confidence going forward,' she said.
'It provides both tenants and property owners with certainty and clarity surrounding the Prime Minister's no eviction moratorium.
'The minimum income reduction threshold for tenants to meet before they qualify for the protection measures is in line with other jurisdictions (stated and territories).
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