Only 3 per cent of tenanted Victorian households received COVID-related rent reductions, despite proof of widespread income loss and unemployment amid coronavirus.
A Victorian parliamentary inquiry report released this week shows 17,552 rent reduction agreements were registered with Consumer Affairs Victoria by July.
Rents reduced on average by $155, or 27 per cent, for those financially affected by coronavirus.
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About 3 per cent of tenanted Victorian houses have received rent reductions. Source: iStock
More than 3000 renters also received $2000 rental support payments up until May.
But broader surveys suggest many renters financially impacted by the pandemic have been short-changed on their rent reductions.
A Better Renting survey of almost 1000 Australian renters shows 63 per cent lost income due to coronavirus, but only 9 per cent of those received a “satisfactory” rent reduction.
The report, which included 283 Victorian responses, indicated almost half of financially impacted tenants did not make a request because they were afraid to ask or did not believe they would be successful.
For tenants who did ask, about 20 per cent were refused a reduction entirely, another 7.5 per cent had their payments deferred, 9 per cent had fruitless negotiations and 4.5 per cent received a trivial reduction.
Many of those who did start negotiations said they received little support from property managers and landlords, who often took weeks to reply. Others were asked to dip in to their superannuation or provide excessive amounts of documentation to prove their hardship.
About 63 per cent of renters surveyed has been financially impacted by COVID-19. Picture: Jason Edwards
Better Renting executive director Joel Dignam said Victorians were still especially vulnerable to financial hardship during stage four coronavirus restrictions.
“This means many renters are still dependent on income support, they haven’t got any rent reduction, and they are struggling to cover their living expenses,” Mr Dignam said.
“In light of the situation, the federal government should keep the rate of JobSeeker, so that people don’t face the prospect of having their income slashed in less than eight weeks.
“The Victorian Government can also extend the existing eviction moratorium past September so that renters have a bit more breathing space.”
Tenants Victoria chief executive Jennifer Beveridge said anecdotal evidence suggests some tenants came to “private arrangements” for rent reductions, which would not have been counted in state government figures.
“But this also makes them ineligible for a rental relief grant through the state government,” Ms Beveridge said.
“We would urge everyone to register their agreement with Consumer Affairs Victoria so they have access to support and protections.”
Ms Beveridge said there was growing concern over “balloon debt” accruing for renters who accepted payment deferrals over a reduction.
Unemployment figures are predicted to rise in Victoria as stage four restrictions shut down many industries for the next six weeks.
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