property & leasing - navwealth financial services · renting and leasing –commercial (sme...
TRANSCRIPT
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Before we begin, some housekeeping..• This webinar will begin shortly to allow attendees to arrive and connect to the audio• If you’re experiencing audio difficulties, try dialling in using your phone• Please enter your questions into the Chat box• A recording of the webinar will be emailed to you after the webinar
• For further tools and resources, please visit our COVID 19 webpage on Navwealth website
Property & Leasing – Your questions answered
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General Advice Disclaimer
This webinar has been prepared by Navwealth Accounting Pty Ltd.
Any advice provided is of a general nature and does not take into account personal circumstances. You should consider whether the information is appropriate to your needs, and where appropriate, seek further
professional advice.
Taxation, legal and other matters referred to in this webinar are of a general nature only and are based on Navwealth’s interpretation of laws existing at the time and should not be relied upon in place of appropriate
professional advice. Those laws may change from time to time.
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Presenters
Simon ProwseDirector of Navwealth Accounting
James SmythPrinciple SEA
Smyth Estate Agents
Rana StevensSenior Property
Manager & Head of Property
Management
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Agenda
COVID‐19 Update
SEA (Smyth Estate Agents) Introduction
Rental & Leasing ‐ Residential
Tenant Negotiations
Landlords
Rental & Leasing – Commercial (superannuation)
Property Market Update
SEA – the difference
Q & A
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COVID‐19 Update
Key Dates
Updates
Reporting
Lack of Knowledge
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SEA ‐ Smyth Estate Agents
Founded 2007
Residential Property Specialists Selling Buying Leasing Renting
Based In Freshwater on the Northern Beaches but will travel
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Rental and Leasing
Overriding Principles
Sharing the impact – interests of tenant & landlord
Circumstances – case by case
Continuity – Tenancy
Good faith
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Rental and Leasing – ResidentialRegulations brought down 15 April 2020Tenants Perspective
Impacted or Non Impacted (COVID‐19)
One or more rent paying tenants in a household• Lost employment• Reduction in working hours• Work affected – illness, carer
25% Reduction in Household Income**Household income – Total of the weekly income (including stimulus) received
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Rental and Leasing – ResidentialRegulations brought down 15 April 2020
Moratorium Period
6 months after 15 April 2020
If impacted, landlord cannot• Issue Termination Notice for Non Payment of rent• Apply to NCAT for a termination order for Non Payment of rent
Cannot black list tenant
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Rental and Leasing – ResidentialRegulations brought down 15 April 2020
Moratorium Period Exemptions
60 Days • Termination notice after 15 April, and• Had good faith negotiations, and• Fair and reasonable to give termination
90 days• End of a tenancy• Other breaches ‐ Not nonpayment of rent
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Rental and Leasing – ResidentialRegulations brought down 15 April 2020
Impacted Tenant (Burden of Proof to apply Moratorium) Substantiation – Hardship form Reasonable document requests Tenant obligation to provide Steps and or timelines
Landlord/Agent document the process
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Tenant Negotiations
Rental Options Reduction Rebate Deferral
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Tenant Negotiations
Landlord Insurance COVID‐19 or similar not contemplated in policies Discuss with insurer Claiming insurance Getting insurance
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Tenant Negotiations
Good Faith Negotiations Document all steps Process Steps
Negotiations Break Down Department of Fair Trading Mediation NCAT Document and Evidence
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Tenant Negotiations
Other matters Rental increases Foreigners Lease break fee
Document the plan
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Landlords
What about the owner – one sided
Land tax holidayRental holidayExtension of leaseBreak lease
Hardship – 90 days Sale of Property – 90 days
General Rights??
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Renting and Leasing – Commercial (SME Market ‐ $50mill)Very similar to residential (mandatory code of conduct) – JobKeeper
Leasing Principles – Landlords
No termination of lease for non payment Proportionate adjustments to rent, waivers/deferrals related to trade and up to 100%, of which
• Min 50% rent waiver (unless otherwise agreed)• Balance deferred – min 24 months
On cost reductions passed on No interest and or fees and charges to apply to deferment Rental increases frozen for duration of pandemic
Leasing Principles – Tenants
Remain committed to lease terms Allow for rental extension in line with waiver/deferral
SME Commercial Leasing ‐Mandatory Code of Conduct (Document)
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Property Market Update
Buyers/Sellers Market Changes to Processes Clearance Rates ‐ Demand Stock Other?
Rental Market Changes to Processes Clearance Rates Stock % Impacted Tenants (10‐25%)
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SEA – the difference
Alerts/Updates immediately sent to landlord and tenantsRegular contactCurrent arrears – 2.17% (Market 4‐6%)Increased densityNegotiations – Who we are working for
Owner not out of pocket If out of pocket can seek restitution
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AQ
Simon ProwseDirector of Navwealth Accounting
James SmythPrinciple SEA
Smyth Estate Agents
Rana StevensSenior Property
Manager & Head of Property
Management
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15th May ‐ Covid‐19 Market Update and Strategies22nd May ‐ Q&A
Future Q&A Fridays
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THANK YOU!