Government says tenants don't have to pay rent if under hardship

My leases were both signed recently so hopefully should get me through the worst of it. I’d actually rent cheaper if it meant I could lock someone in long term but I’ve had tenants ask for 6 month leases a few times. No one has actually wanted longer than 12 or I’d give it to them. It’s not the property managers, it’s the tenants who want the shorter leases.

 

I would say its not poor planning, but rather the later - most don't have the means.

Its more a reflection of the state of our the economy. In recent years we have seen the cost of living increase, rents increase, yet wage growth slow. Households have been dipping into their savings to stay a float.

Real household disposable income has declined since 2016. The only way the government is getting growth is through population growth. The more people we have, the better the aggregate statistics are, despite what is happening at a real, individual household level.

 

My feeling is that we won't be told what the government has decided until after the QLD election has been held (which is tomorrow, Saturday 28th March). I don't think we'll hear till the polling booths have closed, and perhaps until the result is announced. Today, Friday 27th March is when the first instalment of land tax is due in VIC (not sure about other states). Perhaps the government needs us all to pay that first before we hear our fate...

 

I'd suggest that a good tenant doesn't want to enter into a long-term arrangement with the landlord from hell in the same way a landlord wants to be stuck with a bad tenant hence offers only a 12 month lease. For the initial contract, a good tenant should be cautious about signing up for longer than 12 months. After the 12 months, it is whatever arrangement suits both parties.

 

If you're Melbourne based I'll put you on to a few who would want longer. Maybe give it a couple of months though...

 

So my Biggest fear just happened, just got told I’m stood down from Monday, I’m originally a kiwi so get absolutely nothing from the govt or Centrelink, whilst my tenants do but still want to pay less.

I have a $25k buffer right now and $9k per month payments/min expenses so realistically I have around 10wks before **** hits the fan, may try access super and see how that goes.

This greedy landlord is in trouble. All within the space of a few weeks, isn't life crazy.

I was contributing around $1000pm (last 2yrs since buying) building this buffer up, thinking it would just keep building and building for a very rainy day. Turns out it’s poured down a few years sooner than I would have thought

 

Yeah perhaps. I’ve always fixed everything they’ve requested and all that. Maybe I’ve just had bad luck.

Nah my two IPs are in Brissy, thanks though


Sorry to hear that @Codie. I hope you find another job ASAP. This virus is such a bugger!

 

Sorry to hear this @Codie

 

Thanks @wylie the company is a large multinational, at this stage I really wouldn’t know but I’d say not.

Initial thoughts are I move everything to interest only which drops payments by $3000 a month or gives me an extra 8 weeks or so without having to fire sell the ppor.

Unfortunately all though i have had a little flack on my previous posts about not being able to foot the bill for tenants, I’m not far off the same situation even with a $25k buffer. The house will be sold under them which is no good for either of us

 

Rather than revert to IO, will your lender allow a 6 month payment deferral (even with a 3 month re-assessment cliff) to build your buffer, as you're not eligible for Govt help? You may have re-deployed work wise in that time. Sorry to hear mate.

 

nah bra..renter is entitled to sit pretty in his 20k+ car with takeaway smashed avo brekkies. i dont care if the landlord is driving his 2001 ford laser and made many other sacrifices on the way

(yes generalisations suck)

 

Serious?? Tomorrow is QLD COUNCIL ELECTIONS... Nobody gives a toss about those. Plus Libs are in power for BCC, and Labor for state, so there is no grandstanding going on.

I know you may be from Melbourne, but come on...

 

That’s a great point thanks @Player - Rams are finally doing a 3 month deferral according to the site, so that’s what I will apply for.

Yes the interest will capitalise over that 3 months ($14k) but I will be great-full to hold onto the properties for such a small outlay. I may actually be able to help the tenants out some what if needed so this could turn into a win/win (providing things don’t go much longer than 3 months)

 

Your calm and rational manner and positive outlook is terrific in such a difficult time. I’m not sure I could deal with what you’re suddenly enduring. All the best. We’re going to get through this.

 

Had our first request for a rent review (email) via the PM.

PM asked them whether they had lost job or have they applied for new start answer was no. More to the point there are 3 working adults in this unit so plenty of income to cover any of their day to day expenses.

Our first response will be "are you collecting new start". If so then send them back to center link to ask about rental assistance. Not sure at this stage how much is available but Scomo even made a reference to this in a Q and A session.

One problem is that we have some 40+ tenants living cheek to yowl and we need to be very careful not the start a rush for rental reduction requests.Generally just need to get the word around that it won't be happening and that should spread the blocks of units.

I am still not clear as to what Scomo and co are actually doing as they keep mixing commercial and residential whereas they should be treated differently.

 

Seems more than sensible.. nobody can predict a once in 100 year Depression popping up!

There are plenty on here it seems saying "well always have a buffer", but there are reasonable buffers, and then there are buffers for being prepared if the world turns on its head for 6-12 months+.. not so sure that is so normal except for the very most risk adverse people ... who are probably never going to invest in property anyhow.

 

Given the current situation, I think I'd be trying to lose!

 

Help tenants in genuine need if you financially able to, but it does seem unfair to be legally forced to since that's a broad generalization that could sink some. I think ideally if rent is forgiven, so should any mortgage payments and rates or equiv $ in taxes etc for the given period.

In any case, be kind to each other folks. The next 12-18 months is going to see a lot of decent people on hard times, and most people are good, it's just the ***** are the loudest and most newsworthy. There's plenty of money to made on the other side of this, but now is a time to pull together.