Options for property investors struggling since the emergency tenancy laws extension

As many investors would know, the Residential Tenancies (COVID-19 Response) Act has been extended until 28 March 2021. REIWA is disappointed that it was extended for all tenants, regardless of whether or not they are financially affected by COVID-19.

We have seen the impact firsthand on property owners, with the REIWA Information Services having received 50 per cent more calls, predominately from property investors who need assistance with their investment property.

Most of the calls are from buyers who have purchased a property with tenants in it, owners who temporarily relocated interstate or overseas and have now returned, or those who are struggling financially and need to move back into their investment property.

With the extension of the emergency period now in place, property owners might feel there are limited options, but there are several avenues available to owners experiencing difficulties during this time.

Mandatory conciliation

Mandatory conciliation was established to help investors and tenants who have rental issues during the COVID-19 pandemic to reach an agreement about relevant disputes without going to court.

It involves a conciliator to facilitate an informal discussion with the goal to help all parties reach a fair and achievable solution that works for everyone. This can be utilised to determine rent agreements or to negotiate an agreed termination of the tenancy.

Financial hardship

In addition, if you have found yourself in financial hardship and need to move into your rental property, you can apply to the court to terminate the tenancy on the grounds of hardship.

Property damage

If the tenant is intentionally or negligently damaging your rental property, you can apply to the court for an order terminating the agreement, which is made direct to the court and not through the mandatory conciliation service.

It is also important to note that if your tenant is not maintaining the gardens or lawn, or not keeping the property clean, you can not issue a notice of termination until after the emergency tenancy laws have ended.

More information

If at any stage you are unsure of the process or would like information on the best way to proceed, make sure to reach out to your REIWA property manager, as they are well versed in the updated legislation and can assist you to find the most practical solution.