The National Cabinet is meeting tonight to finalise plans on how to deal with leases and tenancies due to the economic turmoil.
A careful balance must be struck between tenants, landlords and their creditors (like banks, body corporates, land taxes, rates, utilities, etc).
A moratorium on commercial leases and any attaching personal guarantee is strongly encouraged, but the landlords must be given some form of helping hand too.
The helping hand could be an extension to lease terms equivalent to the moratorium period, a moratorium on mortgages, rates and other property-related expenses, etc.
I helped a local coffee shop on Monday to talk through their options to try and save the business, and the biggest hurdle was unfortunately the landlord. The landlord wants full rent paid, despite everything going on. I understand, the landlord too has liabilities and demands to meet.
A moratorium on residential leases (except in very narrow and specific circumstances) is a difficult one and prefers renters over mortgage holders. Real estate agents, property managers, etc, could lose their jobs and their livelihoods.
A sensible solution must be found urgently! Good luck tonight Scott Morrison, a lot of people will be relying upon you.
What’s your plan?
