Rights to rent reduction follow up session - for financial counsellors tenants victoria - Financial Counselling Victoria
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
rights to rent reduction
follow up session
for financial counsellors
tenants victoria
Acknowledgement of Country and
Traditional Owners and Custodians
Tenancy Overview
In the spirit of reconciliation, Tenants Victoria and those
gathered acknowledge the traditional custodians of
Country throughout Australia and their connections to
land, waters and community
We pay our respect to elders past, present and
emerging, and extend that respect to all Aboriginal and
Torres Strait Islander peoples
tenants victoria
disclaimer • these slides are designed for the purpose of providing information and are not a substitute for legal advice • these slides are accurate at the time of the presentation tenants victoria
recent changes to
tenants victoria
services
tenants victoria
tenants victoria services – tenant advice line
tenants or residents can seek advice from us by calling
our advice line on 03 9416 2577
10am – 2pm monday to friday
the approximate waiting time is over 30 minutes
calls are answered by lawyers, advocates and intake workers with
specialist knowledge of victorian rental laws
tenants victoria
tenants victoria services – email advice service
https://www.tenantsvic.org.au/contact-us/
all emails are answered by our team of lawyers, advocates and
intake workers with expert knowledge of victorian rental laws
we aim to respond within 5 business days, or sooner
if it’s urgent, please try our advice line or other services
tenants victoria
community sector organisations supporting tenants
community worker line
03 9411 1444
monday to friday 9:00 am – 4.00 pm
free advice or support for workers at not-for-profit organisations
assisting people who rent in victoria
email: admin@tenantsvic.org.au with the subject line “organisation
enquiry”
tenants victoria
tenants victoria services we have also updated out website: we still have work to do but hopefully easier navigation feedback is welcome tenants victoria
what’s going on for people (and industry)?
https://www.savings.com.au/smsf/majority-of-aussies-don-t-want-another-round-of-super-withdrawals
2020 BUDGET SPECIAL – FULL EPISODE https://www.abc.net.au/qanda/2020-03-10/12716582
tenants victoria
superannuation!
$33 billion in superannuation in australia over 12 months
There have now been 4.5 million total applications after factoring in repeat applicants. Over the week to
27 September, 36,000 applications were received by funds of which 22,000 were initial applications and
14,000 were repeat applications.
The total value of payments made during the week was $267 million, indicating once again the scheme's
popularity is slowing down after withdrawals peaked as high as $6.2 billion in the week to 12 July. The
scheme has continually come under heavy fire for a number of reasons in the last few months.
One report found four in 10 Aussies who withdrew super early experienced no drop in income, while
another found 64% of the additional spending was on discretionary items such as clothing, furniture,
restaurants, alcohol and gambling.
Although to its credit, 14% of the money was used to repay personal debts, especially credit card
debts which fell massively over the pandemic months.
More criticisms of the scheme came from the fact that 395,000 people under the age of 35 had completely
eroded their super balance to $0 by July.
More recently, it was revealed 50% either underestimated or didn’t estimate the impact of the withdrawal
on their superannuation balance at retirement.
https://www.savings.com.au/smsf/majority-of-aussies-don-t-
want-another-round-of-super-withdrawals
tenants victoriapeople potentially on $0 income
98,000 people are on visa
with $0 ongoing government support
https://www.savings.com.au/smsf/majority-of-aussies-don-t-
want-another-round-of-super-withdrawals
tenants victoriageneral covid
housing background
tenants victoriahow wide is the financial insecurity and risk of
homelessness?
• no one knows
• there is no data on the number or amount of rent arrears
sittings amongst tenants
• nor of landlord’s and the rate and length of moratoriums
tenants victoriahow wide is the financial insecurity and risk of
homelessness?
AHURI, ‘Renting in the time of COVID-19 understanding the impacts’
(AHURI report), 17
• Even before COVID-19, a third of those in the private rental market
identified as experiencing housing insecurity
• Since the onset of COVID-19, 63% of Australian rental households have
experienced a change in employment or income due to COVID-19, with
10% experiencing a complete loss of income
• 40% of rental households had experienced negative changes in their living
situation due to COVID-19, including in the form of difficulties paying rent
and bills and being forced to skip meals
• Unemployment is not projected to reach pre-pandemic levels until June
2024, assuming no further rolling outbreaks of COVID-19
tenants victorianext 3 months
• what transitional measures will the state government consider?
• what will happen with high level of vcat application?
• what will federal government do in relation to jobseeker and
jobkeeper, employment rate and recession measures?
tenants victoriaclient welfare https://www.abc.net.au/news/2020-09-10/melbourne- victoria-economy-jobs-hit-from-coronavirus-modelled/12648320 https://www.abc.net.au/news/2020-09-10/melbourne- victoria-economy-jobs-hit-from-coronavirus- modelled/12648320 tenants victoria
housing sector: unpredictable growth/investment
https://www.theage.com.au/national/victoria/concerns-about-lack-of-social-housing-spark-
homelessness-warning-20201008-p563c1.html
tenants victoriasms notification of support
• there have been 700,000 notifications sent via sms to remind
people of cav support in rental reduction and to encourage
access of rent relief grant
• this has been done in the last week or so
tenants victorianext 12 months
• transitions from rt act to amendment act
• removal of emergency legislation (part 16 of the rt act) that prevent eviction
• possible introduction of transitional framework to reduce eviction rate
• increased evictions rates
• pressure on public and social housing investment
• employment
tenants victoriaan unknown future… https://www.nbcnews.com/business/personal-finance/large- https://www.theguardian.com/australia-news/2020/oct/24/im-really- corporate-landlords-have-filed-10-000-eviction-actions-five- scared-how-the-looming-cuts-to-covid-welfare-payments-are-worrying- n1244711 - THIS IS FROM NEW YORK – NOT AUSTRALIA millions tenants victoria
public enquiry into homelessness
• the inquiry closed for submissions on 12 june 2020
• no doubt the results will now be even more significant because of covid
https://www.aph.gov.au/parliamentary_business/committees/house/social_polic
y_and_legal_affairs/homelessnessinaustralia
full details of submissions here:
https://www.aph.gov.au/parliamentary_business/committees/house/social_polic
y_and_legal_affairs/homelessnessinaustralia
tenants victoriahousing investment in may 2020 by vic
government (pre-covid peak)
https://www.theage.com.au/national/victoria/victorian-government-undertakes-biggest-social-housing-spend-since-gfc-20200517-p54trk.html
tenants victoriahistory epidemics and pandemics in victoria : historical perspectives https://www.parliament.vic.gov.au/publications/research- papers/download/36-research-papers/13957-epidemics- and-pandemics-in-victoria-historical-perspectives for your information: 1918 spanish flu you tube clip world war 1914-1918. flu spread in 3 stages post ww1. caused more deaths than wwi (500-100 million death) the depression occurred 1920-21 public health and organized health systems are critical keeping housing is fundamental to health care and good economic management! tenants victoria
rent reductions
current state of play
rtdrs - data as of 18 october 2020
tenants victoriaconsumer affairs victoria (cav) – contact centre and frontline resolution
since the commencement of the services as at 24 april, there has been over
contacts 138,661 contacts received by cav.
cav is maintaining an average of around 400 phone calls each day since the start
of the scheme, and averaged 429 over the previous week (note: this is not limited
solely to delivery of the scheme and incorporates all residential tenancy related
queries).
phone calls
the percentage of calls to the cav contact centre’s residential tenancies queue
where the customer abandons the phone call before speaking to an enquiries
officer was 1.1% for last week.
there have been 53,435 reduced rent agreements lodged. this is an increase of
2,160 from last week, of which 69% were extensions of previous agreements.
reduced rent agreements
the average rent amount has been reduced by 24% from the amount in the lease
agreement (21% in the past week).
cav has closed 13,723 informal disputes.
matters closed through frontline resolution
matters referred to vcat 12,751 matters have been referred to vcat.
the average time taken to close a dispute through frontline resolution is 4 days.
average time to close matters (this is cav front line team to see if early resolution is possible; not the rtdrs)dispute settlement centre victoria (cav) – alternative dispute resolution
matters referred to dscv from cav 3,984 matters have been referred to dscv.
3,189 matters have been closed through rtdrs, including 102 binding
matters closed through rtdrs orders.
[nb. referral rates to vcat]
there are currently 795 open matters, which is a decrease from 883 last
open matters
week.
breaches there is currently 1 breach of agreement that has not been resolved.
the average time taken to close a dispute through alternative dispute
average time to close matters resolution is 29 days. this has been revised down as a result of dscv’s
transition to a new case management system.the rent
reduction
process
tenants victoriasteps for tenants
1. work out how much you can afford to pay
2. request a rent reduction
3. register your agreement or seek help
4. dispute resolution service
5. binding dispute resolution services
6. expiring agreements and dispute resolution orders
tenants victoriasnapshot of overall comments from financial counsellors
• clients have told me they spoke to their real estate agents, and the agents offered to arrange
a rent reduction for them - this is good – but check the amount. is it around a 25% reduction?
how much arrears will still be accrued. what is the expectations of debt (if status quo
continue) – to 1 april 2021
• i have assisted one client with a letter to his real estate agent and temporary rent agreement
using the resources on the tenants vic website, no outcome yet - don’t wait too long. not
longer than about 1-2 weeks for a response
• victim of family violence achieved a $3,000 reduction which made a material difference to her
day to day life - wonderful news. also consider other family violence supports. orange
door/safe steps/queens fund/cth bank?
• have referred these cases to colleagues in cafs housing team - great team work. volume of
cases? is this what you would expect? how do we reach more?
tenants victoriasnapshot of overall comments from financial counsellors • two of my clients received a significant reduction in rent - to about 30% of their income - great. they each can seek rent relief grants • i have one client who received a rent reduction however he did this prior to engaging with me - great. rent relief grant. amount of reduction? • i was able to assist a client that had been having issues with a difficult landlord. was able to inform the landlord of the rent relief grant - this is an incentive. but ideal to get make sure maximum reduction possible • most people have been able to negotiate successfully on their own - scrutinze if there is a better outcome possible by forcing the issue – given average reduction is 25% reduction and almost all of these are by agreement – not disputed • amicable negotiation process for renter and landlord - important to recognize renters feelings and relationship post emergency provisions • a client used a statement of financial position i prepared at a vcat hearing and had a landlord request for eviction rejected - they systemic working tenants victoria
tenants victoria practice thoughts
• check the amount the person got reduced
• could they do better by a challenging?
• has the reduction taken into account previous hardship?
• how realistic is their prospect of repayment/employment
as at 1 april 2021?
tenants victoriaplease describe some of the challenges that came up for you and your clients with applying for a rent reduction / rent relief grant • arrears prior to covid or unrelated to covid there is not time limit on section 540 strictly speaking. so can still ask. s537 – covid are very very broad. even then, can still seek $1 agreement, to get rent relief grant if eligible for other reasons • what happens when client is earning $0? like an international student, or bridging visa holder? there is no doubt this is a gap. 98,000 people on visa potentially without any support. can still access rrg – but there will inevitably be a large debt come april 2021 – so real risk of eviction and debt issues • getting the client to supply all the information. client's expectations indeed a challenge. template check list – use vcat financial statement in support of rent reduction application form as a guide • when the rental arrears cumulative, unable to reach the landlord if not contact you can still apply the cav and rtdrs for the reduction and get ex parte orders if they don’t attend. if client willing and landlord does not participate, this is likely a better outcome for the tenant tenants victoria
please describe some of the challenges that came up for you and
your clients with applying for a rent reduction / rent relief grant
• clients had flat out refusal, they don't know if the agent contacted the landlord. found the cav
process daunting - rea have obligations to communicate offers to their principal (landlord) and to
act fairly and honestly (r16, r10)
• client's inability to self-advocate and work through the application process - this is the largest issue
due the overwhelming nature of the process, and that the rent relief grant is tied to getting the rent
reduction. from the data – everyone that lodged an agreement, got the rent reduction
• landlords are only eligible for a grant if they agree to reduce the rent. however, when a client is in
significant hardship and the landlord only agrees to reduce the rent by e.g. $100 p.m unless client
agrees to sign a variation on the lease agreement that is still unaffordable, the landlord isn't eligible
to receive compensation through the grant scheme - and the client won't benefit by having their rent
effectively reduced by up to 30% of their income. clients have reported that the dispute resolution
scheme doesn't do anything - this is deeply concerning. but it does appear there can be ahigh level
of effort, and the matter is still not resolved. following through to vcat is really essential to get the
best possible outcome. in theory (assuming also other criteria met), a $1 rent reduction and a large
deferral is sufficient to get access to the rent relief grant. without a proper reduction – the rent relief
only mitigates loss slightly
tenants victoriaplease describe some of the challenges that came up for you and
your clients with applying for a rent reduction / rent relief grant
• some clients are still scared to ask for a refund, because even though they can't be evicted until 28 march
2021, they are afraid they might be affected after that date. they don't want to upset the ll - this is
unfortunately no way around this. however, if there are substantial arrears, they are likely to be evicted
anyway. the issue of concern here is that while retrospectivity of a rent reduction is in theory possible – we
would expect a lot of resistance from vcat – asking why didn’t you apply earlier, and it is not fair to the
landlord to ask for such an extensive reduction at the last minute
• my client had no success through her real estate agent to get a rent reduction and will now apply for the rent
relief grant - good
• the landlord not understanding the whole process, difficult to navigate - education for both sides about what
they do and don’t have control over is important. use of the above cav reported data, may in of itself be an
incentive to save everyone the time and agrees to at least at 25% reduction and access the rrg where
possible
• landlord initially didn't believe the renter (client) was in hardship because she wasn't working and she had
promised to pay the landlord but didn't. it wasn't until i started representing the client that the landlord
believed the client was in hardship. it took some time to build trust and rapport with the landlord - this a
great outcome. however, on the face of it – it is concerning given the circumstances, the issue was not
obviously. good relationships and education are usually the primary goals to be achieved. it is unlikely to be
able to be done for everyone
tenants victoriaplease describe some of the challenges that came up for you and
your clients with applying for a rent reduction / rent relief grant
• working with a client with disability(autistic) and the main challenge at this point is to
organise appropriate authority forms and have the client engage in the process
• open question:
best ways to engage clients with disability
struggles for rtdrs to assist:
• cald
• nesb
• people with a disability
• people with low level literacy skills
tenants victoriatenants victoria practice thoughts
• paint the big picture for people (ie. large arrears, but
don’t want to rock the boat)
• use resources to simplify the process
(note change on cav website to covid website)
tenants victoriatenants victoria practice thoughts
https://www.coronavirus.vic.gov.au/renting-
laws-and-support-during-coronavirus-covid-
19-pandemic
It’s better… still not simple.
tenants victoriawhat changes to the process would you like to see to improve
outcomes for vulnerable clients
• real life examples. how long did the process take, was there any push back from ll, etc - based on our
experience (approximate). average for cav front line is 4 days if negotiating; about 1 months from the
time it gets the rtdrs, yes there is push back from ll and reas. the compromise is usually reached –
tenant still accumulates some arrears but much more slowly. retrospectivity is not raised as much as
it should be – this may change outcomes. most resolve by agreement (for better or worse)
• access of information for landlords that do not go through a real estate agent - some agents have
been good, some have been bad. nothing stops you directly contacting the landlord if you can
located them using a title search or other means. report misleading conduct to cav and accc
• more streamlined process. for tenants to also understand that landlords have financial obligations,
and a mediation/ negotiation has to be fair for everyone involved - focusing on ll’s seeking a
moratorium (which is federal) is one of the largest missing pieces. as the health pandemic reduces,
you can expect banks and sale pressures to increase. the economic fragility of the housing market
saturated by investors (despite first home owners incentives) may or may not be desirable. this is
largely unknown
tenants victoriawhat changes to the process would you like to see to
improve outcomes for vulnerable clients
• better moderators might be needed. one client told me: "i was disappointed and surprised that
the moderator, …….was so matter of fact; and seemed unsympathetic to my cause - most
hearings are about 1-2 hours, and there is high pressure on them. while empathy is important
in a mediator, people do need to be prepared for a cold inquiry – and ensure they are focused
on the outcome, or resisting unreasonable offers and being prepared to press ahead wit the
matter (to vcat if necessary)
• landlord insisting evictions were possible and that tenant should think about how they were
going to be able to repay rent arrears at the end of the six month period. these to me were
bullying tactics - lets discuss
tenants victoriawhat changes to the process would you like to see to
improve outcomes for vulnerable clients
• more advertising to tenants about how they can negotiate with ll - while negotiating is good. usually
landlord’s are willing to entertain it or not. better education is helpful, but don’t waste to much time.
the matter can be resolved at any time and there is more incentive to resolve it when there is a
proceeding imminent
• face to face meetings would make process easier for vulnerable clients - vcat (and rtdrs) can both
arrange video links in exceptional circumstances. some court proceeding are resuming in person in
limited circumstances. this is unlikely to be the case for vcat at least until the end of the year (and
then reviewed)
• will be great if can provide multiple language support - this is one of the largest barriers, and we
have seen that nesb and cald have not been a high priority. tenants victoria has hired 3 new
outreach workers for to support some cald groups. awareness that certain languages are less
frequent or that written language is less effective is important – and highlight the important for
community connection and outreach by any means possible. an area we all need to work on
together
tenants victoriawhat changes to the process would you like to see to
improve outcomes for vulnerable clients
• a much simpler process from requesting a reduction from the landlord, applying for cav mediation,
escalating to vcat. many clients have poor english, poor mental health and/or lack of confidence -
while there has been some adjustment and improvements, and promotional work continues – the
matter is likely to remain complex or intimidating, and it is important to work collaboratively and
share ideas – it is expected as the removal of part 16 (rt act emergency laws approaches at end of
march) – people will be forced to confront the question of the accumulated arrears
• an assisted application process - it would be good to explore a video and mutual education
resources to address both the financial preparations and calculations, as well as the legal side of the
form being completed – and how this can be targeted for certain cohorts.
• a clear one-page summary - perhaps a yes/no options flowchart to clarify process (might already exist ?)
• the new website is better (see https://www.tenantsvic.org.au/articles/files/resources/rentreductionguide.pdf)
• clients shouldn't sign a lease variation that is unaffordable. if tenant fulfills the rent reduction grant eligibility criteria,
landlord should be able to access the grant if agree to e.g. 10% rent reduction per month for 3 mths. then state govt
subsidises the tenant's rent to bring it down to 30% of the tenant's income - or up to $3000 - whichever is the lesser
amount. the grant goes direct to landlord
tenants victoriawhat changes to the process would you like to see
to improve outcomes for vulnerable clients
• landlord insisting evictions were possible and that tenant should think about how
they were going to be able to repay rent arrears at the end of the six month period.
these to me were bullying tactics - it is an offence to misrepresent someone’s rights
(s501)– or to intimidate from exercising a right or taking a proceeding such as rtdrs
or vcat (s502). this can be reported to cav and if done by an agent accc as well
tenants victoriatenants victoria practice thoughts
example of binding resolution order
tenants victoriaexample: binding resolution order tenants victoria
example: binding resolution order tenants victoria
any other comments regarding the rent reduction process • i have one client that had assist from another service and was unsuccessful and was taken to vcat by the landlord to evict the client. client is now looking for new rental - this seems unusual if relates to rent arrears. see s549(6). being taken to vcat does not mean the landlord will win • some tenants still feel the ll has a lot of power, and despite the law changes (ie cant be evicted due until 28/3/2020) they are still afraid to negotiate with ll - must look at the big picture of their situation • i am interested to know once lockdown ends how willing landlords are going to be negotiate – it will become much harder as banks start to apply pressure tenants victoria
tenants victoria practice thoughts
• we need to work together as much as possible:
- both for client outcomes, and;
- accountability for the system, and;
- to ensure that what improvements that can be made are made
- to be a voice for those that are too scared or unable
to use the current system
tenants victoriacan’t reach an agreement?
residential tenancies
dispute resolution
scheme
tenants victoriastep 4 - dispute resolution service
tips for financial counsellors
• encourage tenants to cooperate throughout the process
• tenants don't need to agree to rent deferrals but should be encouraged to
continue to mediation (conciliation)
• prepare the tenant for conciliation
• tenants need to have a clear understanding of their financial position and
have all documentation in order
• Identify if tenant requires support during conciliation
tenants victoriastep 5 - binding dispute resolution services
tips for financial counsellors
• tenants should be aware that orders may be made if the parties
don’t reach agreement
• support tenants to have a good grasp on what they can afford to pay,
have all documentation in order, so that the officer understands the
tenants position and can make a fair and reasonable order
• if the rent reduction remains unresolved, support tenants
to seek further advice
tenants victoriastep 6- expiring agreements and orders
tips for financial counsellors
• support tenants to extend their rent reduction agreements with
their landlords (and re-register)
• where a tenants circumstances change, encourage
them to seek help
• tenants in breach should seek advice and try re-negotiate an
agreement or seek orders that they can abide by
tenants victoriaany comments on
the dhhs
rent relief grants
tenants victoriaany comments on the
rent reduction
resource kit
tenants victoriaany comments on the
rent reduction
guide (for tenants)
tenants victoriaquestions tenants victoria
thank you tenants victoria
You can also read
