This moratorium is due to end on 28 March 2021, and below we provide some comments on the consequential effects that may occur once ordinary tenancy laws return and apply again.
The Residential Tenancies (COVID-19 Response) Act 2020
The Response Act implemented a moratorium on residential evictions during the emergency period (30 March 2020 to 28 March 2021) for those experiencing financial distress as a result of COVID-19 in addition to other amendments to the Residential Tenancies Act 1987. Amendments introduced by the Response Act included:
- A landlord being restricted on increasing rent during the emergency period, even after renegotiating the lease with the tenant;
- Fixed-term tenancies converting to periodic tenancies if the tenancies expire during the emergency period unless another fixed-term agreement is entered into;
- Landlords not having to carry out non-urgent repairs if they themselves are experiencing financial hardship; and
- The extinguishment of break lease fees if a renter experience COVID-19 related financial hardships.
Although rent rate increases and lease terminations are frozen due to the moratorium, it must be noted that renters may still be evicted or have their leases terminated on the basis of property damage, unsociable behaviour, or financial hardship not related due to COVID-19.
28 March 2021?
As the emergency period is coming to a close, landlords and tenants should be encouraged to discuss and negotiate their options and future rental plans. Once the emergency period ends, the above amendments will no longer apply. Instead, landlords will regain their powers to enforce rent payments and to terminate leases.
If a landlord is owed money from the tenant, the Residential Rent Relief Grant Scheme allows for a one-off payment of up to $4,000 for accrued rent arrears.
If a landlord sees fit to terminate the tenancy on the basis of unpaid rent or to seek a new tenant, notice requirements will need to be provided to the tenant.
Relevant notice period will be provided in the lease or under the Residential Tenancies Act 1987. As an example, for fixed-term agreements, the landlord must give at least 30 days’ notice of termination to the tenant. For periodic agreements, at least 60 days’ notice of termination is required.
If the tenant fails to vacate the premises after the appropriate notice has been provided, the landlord will have the right to apply to the Court for an order terminating the agreement and to regain possession of the premises by evicting the tenant.
What to consider if you are a tenant
With landlords soon to accrue rights to terminate leases and increase rents, tenants will have multiple options to consider as the emergency period comes to a close. These options will include:
- renegotiating the current lease with your landlord; or
- ending the tenancy on the 28th of March 2021 and either start a new lease or not take a new lease.
If a tenant chooses to terminate their tenancy, the tenant must give the landlord 30 days’ notice for a fixed-term agreement, or 21 days’ notice if the lease is under a periodic agreement.
As a tenant approaching the end of the emergency period, it is vital to understand tenancy laws regarding eviction. Even though the original tenancy laws will return on the 28th of March, it is still unlawful for a landlord to lock you out of your rental home or evict you without a Court order.
How Bailiwick Legal can support tenants and landlords
With the emergency period ending on the 28th of March 2021, both landlords and tenants should familiarise themselves with the legal changes which will occur. Due to the intricacies of property law and tenancy legislation, it is crucial for both tenants and landlords to seek legal advice before taking any steps to enforce rent, or terminate a lease.
Seeking legal advice will ensure you are not in breach of any laws, saving yourself potential legal fees, repercussions and strained relationships. At Bailiwick Legal we can assist you in:
- Drafting new lease agreements for your tenant;
- Negotiating lease agreements with your landlord or tenant;
- Representation in legal disputes and Court actions regarding evictions and lease disputes; and
- Understanding the leasing process and your rights as a landlord or tenant.
Richard Dewar (Solicitor)
The above information is a summary and overview of the matters discussed. This publication does not constitute legal advice and you should seek legal or other professional advice before acting or relying on any of the content.