How to address tenant job loss in the age of coronavirus

As New Zealand fast heads into a coronavirus prompted recession, it seems safe to assume that there will be large scale job losses, particularly in industries like air travel, tourism and hospitality.

That’s prompted many – both landlords and tenants – to start asking what could happen if a tenant loses their job and struggles to pay the rent.

Tenant advocacy groups have been quick to start calling for rent freezes, government mandated rent controls and a ban on evictions.

Independent economist Tony Alexander doesn’t go that far but, in his most recent newsletter, he does say that landlords should “give back some of the capital gains you have earned over this housing cycle by holding off rent rises and cutting rent for tenants”.