News

What the new $500m rental package means for you

By Morgan Dyer

A Shepparton real estate agent says the Victorian Government’s $500 million cash injection for the rental market is a great opportunity for landlords and tenants to work together.

Last week the Victorian Government handed down the package to provide certainty and relief to tenants and landlords impacted by the coronavirus pandemic.

Under the package, $420 million would be used to give landlords a 25 per cent discount on their land tax if they provided tenants impacted by the coronavirus with rent relief.

The remaining $80 million will go towards rent assistance grants for renters facing financial distress.

Shepparton Choice Group Real Estate sales executive and property manager Shawn Newby said tenants had become increasingly worried since the pandemic began.

“For a tenant to be eligible they would need to have registered their revised agreement with consumer affairs, have less than $5000 in their savings account and are paying at least 30 per cent of their income in rent,” Mr Newby said.

“These payments will be capped at $2000.”

The payments will be paid directly to landlords and will be based on reduced rent arrangements negotiated between the tenant and landlord.

Mr Newby said if either party was struggling it was best to keep communication lines open.

He said renters should notify their managing agent if they needed assistance.

“The land tax relief is a good incentive for landlords to enter into mediation with tenants.”