*update* this has been extended until March 15 2022.*
We have been keeping an eye out for more details about the governments ‘Commercial Landlord Hardship Fund’ that they announced a little while back.
At the moment landlords are encouraged to help their business tenants with rent relief, but the landlords themselves weren’t given any compensation for doing so, especially those doing it tough.
Details have now been released about this fund:
Overview
The Commercial Landlord Hardship Fund 3 provides grants to eligible small landlords who experience hardship as a result of waiving rent for their tenant(s) between 28 July 2021 and 15 January 2022 under the Commercial Tenancy Relief Scheme.
A rent waiver is where some or all of the rent owed for an agreed period of time does not have to be paid.
Eligibility
Landlords must:
- have total taxable landholdings of less than $3 million
- be able to confirm property ownership
- be the landlord of property subject to a Commercial Tenancy Relief Scheme
- attest that commercial rent represents more than 50% of their total gross income for the 2019-20 financial year.
How much can I get?
Grants of up to $6000 per tenancy, and up to $10,000 for landlords experiencing acute hardship.
(Note, for the acute hardship the landlord can not be an owner occupier nor a related party of the tenant).
Closing date
Closes on 15 March 2022
How do I apply?
Applications are made through the Business Victoria website, which we have linked to here.
You must provide information about the rent waiver agreed with your tenant using the Landlord acceptance letter (DOCX 48.82 KB)
(or similar) when you apply.
Evidence needed
- Ownership of the property by the Customer Number shown on a State Revenue Office Land Tax Assessment Notice or by a 2020-21 Municipal Rates Notice
- Rent relief to the tenant(s) of a property that is subject to a Commercial Tenancy Relief Scheme agreement. You must provide information about the rent relief agreed with your tenant(s) using the Landlord acceptance letter (DOCX 48.82 KB)(or similar).
To be considered for acute hardship and apply for a grant of up to $10,000, landlords must also submit a Qualified agent letter (DOCX 58.62 KB) using the approved template that includes confirmation that:
- Confirmation that commercial rent represents at least 70 per cent of their total gross annual income for the 2019-20 financial year
- Confirmation that the landlord is neither an owner occupier nor a related party of the tenant.
The following circumstances may be considered in deciding to award a grant:
- any adverse findings by a regulator regarding a property owner
- an owner or joint owners being declared bankrupt.
More information
More details can be found on the government website here.
Want us to help you with this application?
If you are a landlord and fit the criteria of this grant, but want some help applying, please send us an email at assist@optimisedaccounting.com.au
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