Have you been asked for a rent reduction?

Via tax you'll get cents in the dollar back, not the full amount. So I can understand people's frustration with being out of pocket, particularly if they're also impacted by unemployment themselves.

 

Not inflexible I have given them 30% off for 12 weeks. But this and other rent and dividend losses mean my income that I live off is down over 65% for next 3 months (some rentals gone completely including European holiday letting)

 

Where did you get the idea that lost rent comes straight off our taxes?

 

Well tax deductible from your earnings. If I don't earn as much then I pay less tax.
OK some landlords are also doing it tough themselves but if you can afford a discount then it makes little difference to the landlord and a lot of different to the tenant.

 

You're talking about negative gearing. In most cases that only refunds 20 - 30 cents for every dollar you loose. The argument that investors can just, "Negative gear it", is fairly ignorant in my opinion.

 

love it when people insist a "tax deduction" = free money

I usually say "ok, give me $1000 now, and I will issue a $1000 tax invoice, that you can tax deduce, deal?"

dead silence after that

 

Haha. What!?!?
Better try and get you some of that Nasty Landlord pimpin' money. They are rollin' in the plastic fantastic!

 

My tenant had lost his job and I saw a 30% reduction in rent as a reasonable temporary solution given the difficult circumstances we are all under. I'm not taking sides with the tenant - just trying to do my bit to alleviate the situation and at the end of the day we might all have some plastic left over - better than nothing!

 

I might be a dumb arse when it comes to financial matters but $150 a week discount is only one hours work for me - so who cares!

 

So, just because it means little to you, does not mean it means little to others. To some, yes, even other investors, $150pw is a lot of money. You make it sound like all LLs are rolling in money. This just isn't true.

 

wow! no wonder landlords get so much hate

 

Although in this the case the poster has agreed to reduce the rent so probably gained karma rather than hate.

In most cases I would have thought the need for a tempory rent reduction could be more easily met by a landlord than the tennant coming up with the shortfall.
If nothing else the landlord will have access to mortgage relief through thier bank, whereas the tennant presumably has no fallback option.

At least the approached you rather than just renge entirely and wave the white flag saying they cannot pay... it shows the Tennant is being proactive in managing thier difficulty.

 

Totally incorrect. Some of the banks will allow you to capitalise interest, therefore costing the LL more.

 

At this stage only 3% of our portfolio has negotiated a reduction.

However, we manage a small portfolio and I feel there's been a lot of luck involved with those stats. I knows some agencies that are around 20%

 

Well capitalizing the interest is an option the tennant doesnt have.
Besides, in the case above of $150 @ 3 months is what....~ $100 in capitalized interest?

 

No different to a tenant having to pay rent arrears in the future except the LL hasn't charged them interest.

 

For sure, particularly if they are able to make up those arrears over the next decade or two it should be pretty easy for them. They could probably even pay the interest.

 

But the tenant has other options...
1. move into a cheaper place.
2. break lease with only 1 week's notice
3. Go to Centrelink and apply for assistance
4. Move in with a friend or family
5. The Govt has also put in place protective measures for tenants that will see that they aren't kicked out in the next 6 months.

 

You know what? I don't have enough energy to discuss this with the ignorant few who earn $150 an hour or more. I'll take my $30 an hour and invest it doing good deeds for my local community. My time and energy is genuinely appreciated here amongst my peers.

 

And it's the ignorant few that earn $150 an hour that give us all a bad name