Update 3.55pm, 27th March, 2020

President of the REIA, Adrian Kelly is assuring the real estate industry, that the Institute is still working with the Government in regards to support for tenants, landlords and property managers.

“The real estate industry stands ready, as we have already said we would, to play our part in this crisis in ensuring that all Australians have a roof over their heads at this time,” said Mr Kelly.

“It is great to see that Australians  are now taking this situation seriously and as the PM said, thank you to our members for your efforts, in particular our auctioneers, who were given less than 48 hours to adapt to moving 3,000 auctions scheduled for tomorrow.

“It is good to hear about more support coming particularly for small business such as ours.

“We will find out later regarding rental support for tenants and will continue to watch this situation closely.

“States have now implemented their ‘no forced evictions for non payment of rent’ measures so the problem for the agent and property owner still remains and is very real right now.

“We are still very supportive of keeping all tenants in their homes and looking after them as well as our property owners but it needs to be recognised that agents too need support.

“The industry is on tenterhooks but the PM did acknowledge that Govt is dealing with a complex problem.

“The REIA will continue to monitor developments and keep the industry informed.”
Original story

The Real Estate Institute of Australia has released a statement reiterating their concerns for tenants and property managers ahead of the Government’s announcement on tenancy legislation.

REIA president Adrian Kelly stated there are some 3.3 million properties that are rented/available for rent across Australia.

“At the current median rent in Australia, this means that some $1,419 million would be collected each week to pay the owner, their bank and tradespeople to undertake repairs and maintenance,” said Mr Kelly.

At a Glance:

• There are some 3.3 million properties that are rented/available for rent across Australia
• Some $1,419 million would be collected each week to pay the owner, their bank and tradespeople
• Many agents are 100 per cent reliant on rentals for their commission-based income

“There are some 70,000 property managers, principals, real estate agents and representatives across Australia.

“Banks have already indicated they are offering customers the option to defer home loan repayments for up to six months.

“The calls to place a moratorium on evictions without  offering any  way for tenants to meet their rental payments means those maintaining and managing rental properties are at risk of not having any safety net for their incomes.”

Mr Kelly said in the case of property managers across Australia, some $141 million per week is at risk.

“Whilst some agencies have a business that covers sales and rentals there are many that are 100 per cent reliant on rentals for their commission-based income,” said Mr Kelly.

“Even for those that have the diversified income stream as sales contract, the reliance on rental commissions will increase.

“The impact is greater in regional areas particularly those that were impacted by the fires and floods at the beginning of the year.

Mr Kelly said the situation was further exacerbated by the inconsistent calls to offer assistance to commercial property tenants.

“The REIA has proposed a package of rental support to be administered through the current arrangement for  payment through the Corona Virus Supplement direct to property management agencies.

“If Government were to accept this it would  mean a proportional payment could then be directed to the agency which would have enabled them to pay staff, their own rent  and outgoings.

“With the Corona Stimulus Package a couple with two children paying 30% of their Centrelink payment plus rent assistance would be able to pay $473 per week and still have $912 per week to live on.

“This is well above the Australian median rent of $430.

“It is only in Sydney and Melbourne that the median rents are higher at $510 and $500 respectively.”