Victoria’s peak real estate body has been urged to retract its “callous” reaction to the state government’s continued lockdown of the sector, which social advocates say uses tenants as “collateral damage”.
The Real Estate Institute of Victoria responded to the government’s road map for reopening announcement on Sunday by advising its members to “refuse to negotiate rent reductions” with tenants in COVID-19 hardship.
REIV president Leah Calnan said the organisation would instead be advising tenants to “make their own inquiries with Consumer Affairs Victoria”, until the state government engaged in “genuine consultation” with the real estate industry.
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“Good faith” rent reduction agreements have been a key part of protecting tenants from homelessness during the pandemic.
The REIV particularly wants physical inspections of Melbourne homes to be reinstated sooner than the October 26 date advised by government, arguing “without inspections, buying and leasing cannot proceed”.
Ms Calnan said the “disastrous” road map announcement coming just days after Victoria’s moratoriums on evictions and rent price hikes was extended to March 28 was a “double whammy” for the real estate sector.
“This is not about making one party a victim, it’s trying to rebalance the rights for both landlords and tenants,” she said.
Victorian Council of Social Service chief executive Emma King urged the REIV to “retract this misguided, callous and dangerous directive”, as it would increase hardship for tenants.
“Rent reductions and deferrals are a key part of protecting tenants from eviction and homelessness during COVID-19 — a process agreed to by the National Cabinet,” Ms King said.
“That system is reliant on good faith negotiations between tenants and landlords.
“Intentionally undermining this process is a kick in the guts for renters.”
Ms King said it was important landlords understood if they refused to carry out a good faith negotiation with their tenant, they would still be compelled to enter into CAV’s formal dispute resolution.
VCOSS chief executive Emma King is urging the REIV to retract its directive to property managers.
Bricks & Mortar head of property Madeleine Cahill said while she respected the REIV and valued “how they’ve rallied behind” the real estate industry during the pandemic, refusing to negotiate rent reductions would only perpetuate issues within the sector.
“It’s crucial for property managers to conduct themselves professionally (and) advise our clients on all their options,” she said.
“Landlords can make the decision (about rent reductions) for themselves.
“I’ve even had landlords call me to get on the front foot about offering a reduction, knowing the industry their tenants work in and expecting they’re doing it tough, and on the basis their own cash flow is great.”
Landlords are only able to access land tax discounts being offered by the government if they agree to reduce rents for hard-hit tenants.
Consumer Action Law Centre director of policy and campaigns Katherine Temple tweeted on Sunday that Victoria’s tenants “shouldn’t be treated as collateral damage in the fight between landlords and government”.
“Thankfully, the CAV dispute resolution service is available to help sort out these rent reduction negotiations,” she said.
Victoria’s eviction moratorium has been extended into 2021. Source: iStock
And the newly formed Renters And Housing Union described the REIV’s move as “reckless” and “in bad faith”.
RAHU secretary Eirene Tsolidis Noyce urged the government to take “immediate action … to ensure the safety and security of thousands of Victorian renters” by enacting an amnesty on rental payments for tenants with no income due to COVID-19 and penalties for landlords and real estate agents who “infringe upon renters’ rights”. RAHU also wants all rental debts accrued due to the pandemic to be forgiven.
Ms Tsolidis Noyce said renters in severe hardship may even be “forced to skip meals” due to further delays in rent reduction mediation.
The Victorian Government has been contacted for comment.
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