Confusing: tenants are going to ask for rent reduction?

Indeed. I imagine the government will have to make some sort of temporary exemption for them.

Nonetheless,

 

I wonder if that includes selling or wanting to take possession to move back into?

 

Has anyone here negotiated an outcome w their tenants yet?

 

It does imply asking for rent reduction. Not sure why you can't see/read into it

 

Not yet

This is legislation which allows regulations to be enacted which can ban evictions. So far no word on the regulations. Here is a copy of the relevant section from the act amending the residential tenancies act nsw:

 

May I know What insurance you are with?

 

Why not start the eviction process knowing that it probably wont happen for a long time. If it keeps insurance happy and the tenant is aware he has time or potential govt protection thus allowing you to sleep at night too

 

You can't start eviction procedures until they're 2 weeks in default. I also suspect that by the end of this weekend the Victorian government will have done something to suspend evictions during this crisis.

At this point it may also be quite difficult to get another tenant in the near future. I'd almost certainly have to reduce the rent and I'd prefer that the entire rental market not be trashed by landlords dropping rents across the board.

Finally I want to work with these tenants. They've been good tenants for several years now, they're just in a very difficult period. They've all but lost their business. If everyone does what they can to help others during this crisis, we're more likely to have a good resolution to this crisis than if everyone tries to step on others to get ahead.

 

yeah i was reading the EBM FAQs this morning and wondering how it works. like, they say you have to start the eviction process, but if govt has said no evictions then maybe you can't even start the process and thus LL insurance is useless.

 

The regulations permitted are very undefined yet. And proposed uniform joint Commonwealth and State enactments may also yet impact this. It's very vague for now and will remain so for some time

 

My lender in Germany suspended repayments automatically for all rented premises and we have been fortunate to be requested to give a 4 to 6 mths lease to RedCross for medical quarantine for 35% of rent. Given that we took it. Cashflow positive and paid by Bavrarian state. And helps affected people to keep them from hospital.

Actions will be complicated and subject to heaps of issues but risk management is important

 

I think Mike misread the linkedin post.

 

Someone mentioned in an earlier post on this thread that it is unwise to offer a rent reduction, as this would have a negative effect on LandLord Insurance. What is the effect as I'm not sure?

In a situation like this can you offer a discount or rent free period, but still keep the rental amount the same. I know it sounds like smoke and mirrors, but perhaps this could be the way to skin the cat!

 

Interesting article from the AFR.

• It would appear initially that on the whole landlords are going to have to take the financial hit on the chin.
• Some minimal tax concessions may apply, but hard to see that assisting cashflow.
• Even with a deferral on your investment loan, there is no indication that you can enforce your tenants to pay back missed rent. Its hard to see that being possible.

Grim outlook for landlords facing 'ticking time bomb'

Grim outlook for landlords facing 'ticking time bomb' AFR

Tens of thousands of residential investors face financial hardship as a result of the ban on evicting tenants, which will not be offset through tax relief and mortgage reprieves, experts say.

Residential and commercial landlords will be banned from evicting tenants who are suffering financial stress caused by the economic fallout of the COVID-19 pandemic.


Tax expert Adrian Raftery says landlords are facing grim prospects as rents dry up and evictions are banned.

To help ease the financial burden, the federal and state governments are working on a raft of tax concessions, including on land tax for property owners. Landlords can also apply for a mortgage repayment reprieve from the banks.

However tax specialist Adrian Raftery, principal of Mr Taxman, said the ban would help tenants but have a detrimental effect for a large number of landlords who can't pay their way.

... read more

 

I work in commercial real estate and virtually every tenant in our managed portfolio has asked to pay no rent for 3-6 months of variations thereof of rent relief. Its easier to list those who havent - it's a short list.

We are talking large corporate national businesses down to local ones across all industries and sectors - office, industrial, retail. It's total carnage out there.

 

How do you find out what they are eligible for? I currently dont know if my tenants are getting a stimulus handout or not. How could I prove they are?

 

Question, can we ask our PM's to request that our tenant update their application form ie check payslips, call workplaces, employment contracts etc. to gain insight as to their ability to pay into the future

I've asked my PM for information about my tenant and there has been radio silence from them. I merely wish to know if I've got a problem coming up or not? Peace of mind, or should I review my own financial strategy. I've got surpluses to cover 6 months+ however, it would unnecessary to utilise it if I can avoid it with other minimising strategies.

 

That's a fair call Cia, it indicates to me the unfair approach working massively in the tenants favour. I would probably only check if I knew problem was definitely coming up though.