NSW Covid 19 - how would you handle this issue?

He hasn’t said anything about this but it’s a moratorium based on “financial stress” so that implies they can’t just decide to stop paying and be safe. You’d think with Centrelink being a back up if they lose their job they’d be able to pay something rather than nothing.

 

Will have to see the new regulations to find out.

 

A combination of smaller reductions and deferral can work, esp as the higher jobseeker payments and potential wage subsidy come in.

 

Bondi beach is a lifestyle suburb. There are thousands of people chomping at the bit to live in your apartment. Ask your property manager to do a home open and if someone else comes along and wishes to pay the $950 then why bother with this additional stress that will come from months of uncertainty about whether he will pay the rent or not. For crying out loud it’s a free market economy you have someone trying to live a champagne lifestyle on a kool aid budget in one of the coolest suburbs on earth. Are you trying to subside cheaper coffees for the rich Bondi beach people to enjoy by subsidising their baristas accomodation? Is that your role in life?

Bondi beach is just not going to be one of the suburbs where you have to be worried about getting a tenant. Sympathise with your tenant wish him well in his next ventures, tell him how lucky he is that he is getting an extra $500 from Scomo, because when WA got kicked in the bells nobody in Australia lent out a hand across the Nullarbor to help families without jobs and negative equity.

 

Lowest listing is $850/week!

If they sublease two rooms, they'd already get $700+ a week from that. Sounds like an excuse to me.

https://www.realestate.com.au/rent/...=false&activeSort=price-asc&source=refinement

 

Meet them halfway, otherwise you can AirBnb it, assuming the building allows it, and you don't P off your neighbours, by introducing a party house.

 

@Tom Rivera what is the highest rent you think the government benefits could comfortably cover? I haven't been following what the welfare offerings are, i just know it's been offered. So trying to gauge at what point is fair.

Also if the tenant is on centerlink payments already and already not working, they should have no basis asking for a rent reduction right? They have a secure income and it's also doubled. Just to add to that, out of all the people, I don't understand why they are receiving more financial support (and the first lot that was considered by the govt) when their income hasn't been affected in the first place. We have people losing their jobs so no income and businesses struggling, aren't these more of a priority? Can someone explain this to me, I'm genuinely a bit confused.

 

But the problem is you cannot evict them. So they can stay in your property rent free if they refuse to pay and you can't do anything about it?

EDIT - sorry didn't finish reading all the posts before responding. This thinking is already covered by OP.

 

Don't give him the reduction, let him leave, encourage him to leave, waive all break lease costs to get him to leave, even if you struggle without the rental income and have to sell, he is asking for a rent reduction now imagine what he will do when all the new laws come into full force, imagine when he is paying nothing and you can't get rid of him, he is damaging the property, you can't sell because he is in there, it will be far worse outcome than a vacant property. Also as soon as you agree to rent reduction it affects your ability to claim on your ll insurance for rent default.

So if all the states follow Tasmania, no evictions for any reason, you have zero rent paying tenant, have to let the bank take it back because you can't pay mortgage and can't sell with him in it for enough to cover the loan, bank sells for peanuts because it has a non paying tenant in place, bank comes after you for anything else you have to cover shortfall on loan.

All landlords with a vacant property right now, should be very very grateful and keep it that way.

 

Just a couple of things.
1. Agents aren’t allowed to hold open homes right now. Properties can only be inspected by private appointments.
2. I think the problem with Bondi is the very high number of Airbnb properties and there are no holidaying tourists. So some of the owners of those properties will want to go long term. Note we’ll be heading into winter too, which would have less tourists in any case too if Corona Virus was even eradicated
3. Eastern Suburbs Sydney is the centre of a couple of Corona Virus outbreaks due to some large gatherings of people this month. Bondi is an Epicentre.

Not saying what the OP should do, except maybe they could try negotiating with the tenant for something more than $700.

I can’t say if s/he’ll end up getting what he wants though unfortunately.

 

Aren't open inspections banned?

 

what on earth are you talking about?

You don't know the current tenant. Who says a new tenant won't be worse?

Yes. They are.

 

thanks a lot for your advice. yeah it's very tricky. i'm accepting the 700 for now and revisiting in 4 weeks. While I feel that the govt assistance coming online every day should help keep the rental market from freezing up and nobody being able to pay, I still think right now is not the time to go vacant because I will likely end up with nothing for quite a while in the current circumstances with the lockdown

 

With travel so restricted, who is going to book it on Airbnb?

 

Fair point.

I just thought it might better better than suggesting that the OP find a local dealer, who might be less fussy, and rent it out as a meth lab for twice the normal rent, but there you go.

 

1) He's provided no proof that his income has been cut.
2) He would have had to prove that he could afford the rent when he first leased it.
3) If @spludgey is correct, $850 is the current lowest listing in the area.

Based on the above, I would say NO! At the worst, I'd drop to $850, but not $700.

He's taking a lend, because he can't lease out the spare rooms for as much as he used to......or he doesn't want to be confined with so many people while we're all self isolating. If his income hasn't been cut, then he'd be saving quite a bit at the moment, since he can't go anywhere.

 

I agree most of your saying, especially the free market bit. But Scomo just trump you (I mean everyone have put money in the IP market) with a bazooka (no eviction for six months).

Don't get me wrong, the government is trying everything to stablize the financial market and reduce the uncertainty for everyone. It is a reasonable and noble act. But this kind of act do bring significant side effects in the long run.

It could be another Pandora box, like the FED opened the one called QE in GFC.

 

I think you did very good. It would be interesting to see the outcome of the revisiting in four weeks - return to 900 or further reduction.