One in three tenants impacted by the coronavirus pandemic had requests for rent reductions ignored or rejected without reason, leaving some “facing homelessness”, a damning new report has revealed.
The Tenants Victoria survey of 370 renters also found many struggling renters didn’t even ask for discounts, with 16 per cent stating they were too “scared”, 19 per cent claiming they were confused by the system, and 12 per cent noting they were discouraged by their real estate agent’s behaviour.
Tenants Victoria chief executive Jennifer Beveridge said she was concerned by the startling number of respondents who refrained from asking for reductions despite being eligible.
RELATED: Melbourne’s most popular rental streets: Federal St, Footscray No. 1
HomeBuilder grants: 1100 Victorians apply in a week
West Footscray California bungalow renovated with contemporary industrial edge
Tenants face a looming end to the eviction ban in September.
“We have a new cohort of people who are experiencing financial disadvantage through COVID-19 and they’re not at all used to asking for help,” Ms Beveridge said.
“They’re going to other places for help or they’re burning through whatever savings they have, or finding other ways to get through.”
Of the tenants who did ask, 22 per cent said they were told the landlord needed the income, or that they were ineligible for a rent cut, usually without advice on eligibility requirements.
A further 12 per cent of landlords offered to defer rental payments to a later date rather than agree to a reduction, leaving their tenants at risk of future debt.
RELATED: Coronavirus: Very few Victorian tenants have secured rent reductions
Just 2 per cent of respondents said their landlord initiated a discount without them having to ask.
Ringwood tenant Jarrod Farr applied for a rent reduction after losing his job as a project manager during Melbourne’s first lockdown.
But his requests fell on deaf ears after his property manager claimed they were unable to make contact with the landlord.
“At the moment, without exaggerating, I’m facing homelessness in a month,” Mr Farr said. “I’m not trying to bludge, I’m paying as much as I can afford.”
Mr Farr said he feared his landlord was waiting until Victoria’s eviction ban ended in late September to boot him out of the property.
Madeline Byrne rents with her Italian Greyhound pup Vinny. Picture: Sarah Matray
Courtney Windross lost her job at a local restaurant due to COVID, but her partner’s income and JobKeeper payments have kept them in their rental. Picture: Alex Coppel.
Premier Daniel Andrews flagged an extension of the moratorium on evictions for struggling residential and commercial tenants in early August, but further details have not yet been released.
Tenants Victoria is calling for an extension to the end of March, to align with the end of the federal government’s JobKeeper payments.
“Landlords are in the business of providing homes for people and we forget that,” she said. “At a time like this when we’re being told to stay at home, they’re not complying with the social contract around protecting the housing of the renter.”
Barry Plant Doncaster East’s director of property management, Brendan Di Rago, said some owners were “hurting just as much as tenants”, but “just having to make a deal” regardless.
“There are still tenants hurting and they’re requesting extensions,” Mr Di Rago said.
“It’s a big, vicious circle.”
He said while discussions between tenants and landlords had often been “heated” during Melbourne’s first lockdown, tensions had since simmered.
A recent Victorian parliamentary inquiry report showed more than 17,500 rent reduction agreements were registered with Consumer Affairs Victoria by July, at an average discount of $155 per week or 27 per cent.
READ MORE: Victoria dominates list of happy sellers
Croydon house buyers are dying to inspect after stage four eased
St Kilda sales: Melbourne lockdown prompts spending splash
The post Struggling Melbourne tenants ignored by landlords: report appeared first on realestate.com.au.