Property & Leasing Your questions answered Before we begin, some - PowerPoint PPT Presentation

Property & Leasing – Your questions answered 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

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.

Presenters Simon Prowse James Smyth Rana Stevens Director of Principle SEA Senior Property Navwealth Smyth Estate Agents Manager & Head of Accounting Property Management

Ag Agenda enda 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

COV COVID ‐ 19 19 Upda Update te Key Dates Updates Reporting Lack of Knowledge

SE SEA ‐ Sm Smyth yth Es Estate Ag Agen ents ts Founded 2007 Residential Property Specialists  Selling  Buying  Leasing  Renting Based In Freshwater on the Northern Beaches but will travel

Re Rental and and Leasing Leasing Overriding Principles Sharing the impact – interests of tenant & landlord Circumstances – case by case Continuity – Tenancy Good faith

Re Rental and and Leasing Leasing – R – Residential Re Regulations br brough ought do down wn 15 15 April April 2020 2020 Tenants 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

Re Rental and and Leasing Leasing – R – Residential Re Regulations br brough ought do down wn 15 15 April April 2020 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

Re Rental and and Leasing Leasing – R – Residential Re Regulations br brough ought do down wn 15 15 April April 2020 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

Re Rental and and Leasing Leasing – R – Residential Re Regulations br brough ought do down wn 15 15 April April 2020 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

Te Tenant Negoti Negotiations ns Rental Options  Reduction  Rebate  Deferral

Te Tenant Negoti Negotiations ns Landlord Insurance  COVID ‐ 19 or similar not contemplated in policies  Discuss with insurer  Claiming insurance  Getting insurance

Te Tenant Negoti Negotiations ns Good Faith Negotiations  Document all steps  Process  Steps Negotiations Break Down  Department of Fair Trading  Mediation  NCAT  Document and Evidence

Te Tenant Negoti Negotiations ns Other matters  Rental increases  Foreigners  Lease break fee Document the plan

Landlor Landlords ds What about the owner – one sided Land tax holiday Rental holiday Extension of lease Break lease  Hardship – 90 days  Sale of Property – 90 days General Rights??

Re Renting and and Leasing Leasing – Com Commercial (S (SME Ma Market et ‐ $50m $50mill) ill) 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)

Pr Property Ma Market et Upda Update Buyers/Sellers Market  Changes to Processes  Clearance Rates ‐ Demand  Stock  Other? Rental Market  Changes to Processes  Clearance Rates  Stock  % Impacted Tenants (10 ‐ 25%)

SE SEA – t – the dif differ erence ence Alerts/Updates immediately sent to landlord and tenants Regular contact Current arrears – 2.17% (Market 4 ‐ 6%) Increased density Negotiations – Who we are working for  Owner not out of pocket  If out of pocket can seek restitution

A Q Simon Prowse James Smyth Rana Stevens Director of Principle SEA Senior Property Navwealth Smyth Estate Agents Manager & Head of Accounting Property Management

Futur Future Q&A Q&A Frida Fridays 15th May ‐ Covid ‐ 19 Market Update and Strategies 22nd May ‐ Q&A

THANK YOU!