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COVID-19 Related Tenancy Measures Extended

29/9/2020

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COVID19 related tenancy measures extended - carnelian property management in newcastle

As the impacts of COVID-19 began ramping up around March / April 2020, the NSW Government announced temporary measures to restrict when landlords can evict tenants due to rental arrears as a result of COVID-19. In addition, the Government increase the notice period for certain other cases for termination to 90 days.

These restrictions were originally due to end on 15 October 2020. They have now been extended until 26 March 2021.

Overview of the COVID-19 Tenancy Measures

The measures include:

A restriction on landlords evicting tenants who are financially disadvantaged by COVID-19, unless they have first attempted to negotiate a rent reduction with the tenant.
Extended notice periods for certain other lease termination reasons
Allowing tenants financially disadvantaged by COVID-19 to terminate a tenancy agreement where a landlord will not negotiate or where it is necessary to avoid financial hardship
Retaining the ability of landlords to terminate a tenancy agreement in cases of undue hardship.

Under the measures, landlords must attempt to negotiate a rent reduction with an impacted tenant in good faith before seeking to terminate a tenancy, and can only give a termination notice or apply for an termination order if it is fair and reasonable to do so in the circumstances.

Fair Trading offers a tenancy moratorium dispute resolution service that can assist landlords and tenants to try to reach an agreement.

Landlords can still apply to the Tribunal at any time to take possession of a property if they are suffering undue hardship.

All tenants not impacted by COVID-19 are expected to continue paying all rent and charges in full.

Extended notice periods

Along with the restrictions on evictions for rental arrears, the Government has also extended the notice periods for certain other lease termination reasons to 90 days. This 90 day notice period applies when ending:

a fixed-term agreement
a periodic agreement
a tenancy because of breach of agreement other than for non-payment of rent or charges.

The restrictions on eviction actions and notice periods to end tenancy were originally due to end on 15 October 2020. They have now been extended until 26 March 2021. Further information is available on the NSW Fair Trading website.