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An update on the extension on banning evictions and rental increase in Victoria

The pandemic really slowed us all down – changed the way we live our day to day lives. One of the ways this pandemic affected us is how we do our work. Some people had to start getting used to working from home, while there are unfortunate others who really had no choice but to say goodbye to their jobs. Now the question on people’s minds – well, mostly on those who are renting, is there a possibility of saying goodbye to their homes too?

There is, but not so fast.

The Victorian Government recognizes that right now is indeed a trying time for everyone. It is important that those who really need it would be able to get the help that they need. A statement was released announcing the extension of the ban on evictions and rental price increase until the end of 2020. Victoria continues to fight the coronavirus, and one way to slow down the spread of the virus is to keep everyone in their homes as much as possible. Unfortunately, this really affected so many workers and how they can pay their bills. The Victorian government once again reiterated that tenants and landlords need to have a conversation to reach a compromise regarding the whole situation.

Under the eviction ban, landlords are not allowed to evict both residential and commercial tenants are until December 31st, 2020 while rental prices are capped at current prices for the same period. This move will give tenants a chance to start over and the security that they need during this time. Losing a roof over their head should be the least of their worries especially right now.

According to the recent announcement, "for landlords who do grant rent subsidies, they will also be able to take advantage of more support, including further land tax reductions and more grant funding.

Eligible residential tenants and landlords will be supported with up to $3,000 in rental payments as part of the Rental Relief Grant program, with new recipients able to apply for the full amount."

The government has now announced that an additional $1,000 for previous recipients. An increased land tax discount is also available for residential and commercial landlords. It was previously a 25% discount. It has now doubled, and via the hardship scheme, a fund of $60 million for eligible small commercial landlords has now been made available.

Minister for small business Jaal Pulford adds that it is really a good time to find common ground. The government also encouraged banks to continue working on a compromise with those who struggling to pay the mortgage due to the pandemic.

Xotel is just one of the many businesses that really understands that there is a need for more affordable and stable housing. Find out more about our project and leave us a message if you are interested to work with us.

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