Unless the federal and or state government take action to prevent the accrual of rent arrears over the coming months, the evictions moratorium will simply end for renters in deferred evictions, on-going debt and tarnished reputations during the recovery stage. Rent reductions, where the rent due is reduced, rather than rent deferral, must be the aim.
National Cabinet turned out to be a lost opportunity. Many of the principles outlined by the Prime Minister in the mandatory code of conduct for commercial rents could have been applied to residential tenancies. National Cabinet could have pushed lenders to play their part and required broad relief from residential mortgage costs, and in particular capitalization of interest, removing a key barrier to rent reductions for tenants. Despite this, most landlords will have access to mortgage relief on the basis of economic hardship.
The issue of residential tenancies has now been left for the state government.
Reducing costs
How can we hibernate and suppress (to use the PM’s speak) the costs of rent and mortgage and keep as much money flowing around the economy as possible, rather than using income support payments to service debts and loans?