QLD Has anybody else offered a rent reduction without tenant's request?

Discussion in 'Property Management' started by Ben Clifford, 21st Feb, 2021.

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  1. Ben Clifford

    Ben Clifford New Member

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    Long story short...

    I self manage the rental of a small house I own, next door to my own house. I would get a PM but I just don't see the point when I literally live next door. Nil issues so far.

    October last year a single mother and her two children sign a year's lease on the house, good tenants generally. She was working part time but lost most of her hours in January and relied on Centrelink to pay the rent. They never went into arrears until a few weeks ago when they underpaid the fortnightly rent by half. The next fortnight, they paid the arrears and have been paying full rent ever since, so no current issues at all.

    This week I conducted an inspection of the property; Mum was home. I noticed that a lot of the family's furniture was missing and basically all that's left was the TV, couch, table, and beds (I know they had more furniture previously as I saw them moving in). Asked Mum about the furniture and she said she sold a lot of it to make rent and other bills until she can get another job.

    I want to offer a slight temporary rent reduction to make this easier until the family gets back on their feet (the tenant did not request a reduction). Obviously this is just being a good neighbour but (selfishly) I also want to make sure I retain good tenants who don't cause problems. The reduction would be 350 week down to 300 a week, for a few months.

    How do I o this legally? I don't know how to amend the current lease - would it just be an agreement that I get in writing? Has anyone done this before?
     
  2. Trainee

    Trainee Well-Known Member

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    Messing with the lease is probably a bad idea. Wouldnt it be easier to give her some woolies gift cards?
     
  3. Ben Clifford

    Ben Clifford New Member

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    Thanks Trainee, I'll consider it -- I just feel like it'd be a little awkward
     
  4. Mel Morgan

    Mel Morgan Sydney Property Manager Business Member

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    You could give her a week's free rent as an alternative.
     
    craigc, wylie and Property Baron like this.
  5. Ben Clifford

    Ben Clifford New Member

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    Thanks Mel, that sounds much easier. Would I need to formalise that in anyway? Like with a written agreement? Or could I just let the tenant know verbally to skip one payment.
     
  6. thatbum

    thatbum Well-Known Member

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    I've done something similar before but legally I'd recommend deferring the rent and then making the decision to write it off much later - possibly even at the end of the tenancy.

    Especially because you never know when the government might announce a grant or supplement that you might be able to collect in on.

    Here in WA I think we're about to go onto our 4th round of rental subsidies.
     
  7. wylie

    wylie Moderator Staff Member

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    I'd also suggest keeping the rent at the higher figure and offer a week or two free.

    We did this when we needed to allow a cement pump to run through the yard. I knew he was waiting fairly often to be paid for work he'd done. They often were a few days late, but always caught up.

    It was win/win. We did this twice. First time the concrete pour was postponed, but I honoured the agreement. Then when it did happen a few weeks later, we gave another week free.

    It's easier to offer a week free than drop the rent and then some tenants will think the catch up to what you were getting is a steep increase.
     
  8. Ben Clifford

    Ben Clifford New Member

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    Thanks everyone. I've emailed the tenant an offer to skip the upcoming fortnight's rent, on your advice
     
  9. Mel Morgan

    Mel Morgan Sydney Property Manager Business Member

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    Definitely document it in writing so she knows its a one-off helping hand, and possibly worth considering splitting it over say 2 months (1 week free per month) if not too late! Some people are not that good with money management.
     
  10. Patrico1966

    Patrico1966 Well-Known Member

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    Does it end on 31st march?