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

Discussion in 'Property Market Economics' started by Jess Peletier, 20th Mar, 2020.

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  1. Antoni0

    Antoni0 Well-Known Member

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    I think there's quite a lot of misunderstanding of the prohibition on evictions for 6 months, it's not a total blanket prohibition you can still evict tenants under certain circumstances. Have a look at the Jackie Trad video, starts at 12:30 on the video.

     
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  2. skater

    skater Well-Known Member

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    In all honesty, the government has been very generous with the jobkeeper payments, and while I can't find put my finger on the place where I saw it, the payments means that a family with two kids can still afford the average rent and still have around $900pw to live off of when you add it the other benefits like rent assistance etc.
     
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  3. bumskins

    bumskins Well-Known Member

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    I wonder how many families are going to get 2x Job Keeper + all the other benefits?
    I think thats far from the default case.
    Still tax to be taken out of the payment too.
     
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  4. marmot

    marmot Well-Known Member

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    Or those that only lose one income and the other earns more than 78k, they get nothing .
    Many businesses will not qualify for the job keeper so workers wont qualify for anything if laid off , many casuals will get nothing if they are laid off, many casuals will also be weeks and weeks with no pay due to being unable to get back to work after a minor sore throat or cough as many emploers are refusing to allow them back onto workplaces uneless they can medically prove that they do not have coronavirus, and they are refused the test because they do not fit the criteria.
     
  5. Gill Bates

    Gill Bates Well-Known Member

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    RE title of this thread -
    Government says tenants don't have to pay rent if under hardship"

    What the government actually said is ( or words like this )
    " Tenants can not be evicted if during next 6 months they can sho that they not pay rent due to the virus "

    If they do not pay rent, they still have a debt and a obligation to pay.
    The next property owner will get to find out about their unpaid rent.
    And with all the government benefits and potential withdrawals from super the number tenants in this situation would have to be quite small.

    About the casual workers

    Maybe better they just go on dole ? Would have to get a few hundred there , plus rent assistance.
    And most would have at least a few thousand in super that they could use ?
     
  6. frank22

    frank22 Well-Known Member

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    The job keeper included casuals with 12 months or more of service
    The job seeker is for everyone one.The ACT government introduced a package for landlords ,whilst the nanny state of Victoria have sat on their arse and done nothing
     
  7. Jezzah

    Jezzah Well-Known Member

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    If mortgage holders need to freeze their loan for six months can the bank have some m²? Better than just giving the free payment-period for nothing.

    I am being facetious, I get it, it sucks. Rent free ideally is a rare situation as I would hope most would come to an agreed reduction instead.
     
  8. Melbourne_guy

    Melbourne_guy Well-Known Member

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    What is the alternative for landlords to watching a business fold and a building that lies empty in the short to medium term? There is unlikely to be a flood of businesses immediately jumping to take over commercial leases except for the very best locations.
     
  9. Jezzah

    Jezzah Well-Known Member

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    True. In my mind I was thinking of both residential and commercial landlords together and that's not the situation FireDragon had proposed.
     
  10. Omnidragon

    Omnidragon Well-Known Member

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    Haha I’ve had a retail tenant still open for kebab takeaway, who obviously didn’t pay March or April rent, and just completely ignores emails from the agent.

    So much for coming to the table to negotiate. Doesn’t even respond after 1 month.
     
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  11. Jezzah

    Jezzah Well-Known Member

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    DAMN! Feel for you Omni, if that person can't at least communicate then yeah I would kick them to the curb the first chance I get. If we can't communicate we can't do business!
     
  12. Redom

    Redom Mortgage Broker Business Plus Member

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    On a macro level, this isn't really an option at least for a while post Covid.

    Simply, as the PM keeps explaining, 'and replace them with whom?'
     
  13. Omnidragon

    Omnidragon Well-Known Member

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    Super dodgy. I’ve told the agent just give notice in accordance with current law and lock up. Don’t really care if I get no rent because I’m getting no rent anyway and no communication.
     
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  14. Anchor

    Anchor Well-Known Member

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    Govt needs to find a middle ground soon before lack of policy pushes stakeholders to extreme positions... ideal breeding ground for populist outcomes.

    If commercial tenants/LLs could not come to an agreement how would you expect residential tenants/LLs to do so ?

    Everyone.. tenants, LLs, banks, local and state govts, agents, insurers and service providers should wear some cost.
     
    Last edited by a moderator: 8th Apr, 2020
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  15. MTR

    MTR Well-Known Member

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  16. Shogun

    Shogun Well-Known Member

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    I think a "financial planner" has to advise them
     
  17. Simon Hampel

    Simon Hampel Founder Staff Member

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    People can apply to access super in the case of hardship - but you can't advise someone to do so, because that would be giving financial advice and there are lots of dodgy operators out there with schemes to help people get early access to their super.

    Personally I don't think using super to pay your rent is actually a good idea - I think super should only be used in actual emergencies (eg major illness with expensive treatment, etc).
     
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  18. Propin

    Propin Well-Known Member

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    I was thinking I should pull out my superannuation to pay the banks when the tenants stop paying. But then I thought, hmm maybe the tenants should use their superannuation. But then there was a crackdown on suggesting that. So I think the government should pay the shortfall. I don’t think I’d be all that worse off having the property vacant.
     
  19. iloveqld

    iloveqld Well-Known Member

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    So landlord don't need to suggest, but landlord can offer rent reduction, if renters can't pay, all will be recorded with cost and landlord can claim on that after all this ****
     
  20. marmot

    marmot Well-Known Member

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    Unless you lost your job why would you need to use your super, there is the option of using the savings from all the interest rate cuts over the last 10 months, and you still have negative gearing to get back some of the losses.
    After all , thats what its for.
    30 years of no recession and 12 years since the last economic shock, did everyone just get overconfident with risk ,before it all went horribly wrong.
     
    Last edited: 7th Apr, 2020
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