One notable aspect of the effects of the coronavirus is that,
because of the inevitable interconnectedness of our society, many
response measures aimed at helping some particular group have a
negative effect on another. The impact on residential and
commercial lease agreements is a case in point.
Impact on landlords of laws preventing evictions
An obvious example is the proposal to protect from eviction
– at least for a limited time – tenants unable to pay
rent because they have lost their income. So the landlord loses
rental income, and is denied the usual remedy of removing the
defaulting tenant, and getting a replacement who will pay.
Some such landlords may be substantial commercial entities with
some capacity, temporarily, to absorb losses of this kind; and
perhaps to access some other provision of the Australian
government's economic response package. But others may be
self-funded retirees whose principal retirement income is derived
from property rental.
