How has COVID-19 affected you as a landlord?

Discussion in 'Property Management' started by Simon Hampel, 17th Mar, 2020.

Join Australia's most dynamic and respected property investment community
  1. Simon Hampel

    Simon Hampel Founder Staff Member

    Joined:
    3rd Jun, 2015
    Posts:
    4,992
    Location:
    Sydney
    We've already started to hear a few things in some of the other threads - but I thought it would be useful to discuss some of the issues we might be facing as a landlord in the light of the COVID-19 Caronavirus.

    People who are self-isolating are going to have difficulty seeking a property to rent if they need to move.

    People who aren't able to work because their place of work has shut down or shed staff are going to have difficulty paying their rent.

    How is everyone handling these situations? What other issues have people experienced?
     
  2. Gockie

    Gockie Unicycle everywhere... except after ankle surgery Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    10,450
    Location:
    Sydney
    Having been an Airbnb host since 2014, I am now stopping the Airbnb hosting. Nobody is travelling.
     
    Danny370z likes this.
  3. FireDragon

    FireDragon Well-Known Member

    Joined:
    31st Jul, 2015
    Posts:
    231
    Location:
    Australia
    Yes, one of my tenant is a student and her University has a confirmed case. She is not going to renew the lease and going back to China.
     
  4. Sackie

    Sackie Well-Known Member Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    15,350
    Location:
    Bondi Beach
    I haven't been affected yet, though its still early days. This is where buffers will come into place too. Hope people have decent buffers.
     
    MWI, Hetty, kierank and 2 others like this.
  5. moridog

    moridog Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    340
    Location:
    WA
    As Gockie says, we haven't had a booking at our airbnb since the news broke, our big Easter booking has cancelled as they have had to cancel their wedding. We were intending to put the house on the rental market and will do so a little earlier than intended now.
     
  6. FireDragon

    FireDragon Well-Known Member

    Joined:
    31st Jul, 2015
    Posts:
    231
    Location:
    Australia
  7. skater

    skater Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    3,344
    Location:
    Sydney
    Most of my tenants are centrelink recipients, so their income should stay the same, no matter what. My huge, main concern is that we are about to settle on a new PPOR. The goal was to put tenants in for 12 months, while we reno here & sell it. We've also given notice to tenants of another home to reno & sell. So, the PPOR would normally command $790pw rent. Hoping we can find someone with an income that will be stable, as we absolutely need that. The other concern is that the two homes we were going to sell.
     
    Tattler likes this.
  8. Dan Wood

    Dan Wood Well-Known Member

    Joined:
    18th May, 2019
    Posts:
    273
    Location:
    QLD
    Get in quick, I personally predict that people will be renewing with shorter leases (if they're unhappy) to avoid moving while all this is happening..
     
    Rugrat likes this.
  9. Gen-Y

    Gen-Y Well-Known Member

    Joined:
    8th Nov, 2015
    Posts:
    317
    Location:
    Brisbane - Sydney
    Nothing yet - but I will find out from my landlord insurance.
    See if the covers actually covers rent arrears in a pandemic situation.

    I would ask everyone to check their own policy. Don't assume it is all OKAY!
     
  10. Gen-Y

    Gen-Y Well-Known Member

    Joined:
    8th Nov, 2015
    Posts:
    317
    Location:
    Brisbane - Sydney
    Yes good strategy to have in place. Smart move there Sackie.
     
  11. chrish

    chrish Active Member

    Joined:
    22nd Nov, 2017
    Posts:
    39
    Location:
    Perth
    As a strata committee, we have suspended interest being incurred on late levy payments. We will review at a later date.
     
  12. Lacrim

    Lacrim Well-Known Member

    Joined:
    25th Jul, 2015
    Posts:
    2,541
    Location:
    Australia
    Am selling too. I reckon I'm a month too late :(
     
  13. Lacrim

    Lacrim Well-Known Member

    Joined:
    25th Jul, 2015
    Posts:
    2,541
    Location:
    Australia
    Good luck with that. They'll prob find any reason why it's not covered.
     
  14. Danny370z

    Danny370z Well-Known Member

    Joined:
    1st Nov, 2015
    Posts:
    117
    Location:
    Sydney
    Most chinese want to go back to china. Look at the flights almost 5k one way now. This is because they are actually handling it now. And they are worried about how bad we are doing...
     
  15. Gen-Y

    Gen-Y Well-Known Member

    Joined:
    8th Nov, 2015
    Posts:
    317
    Location:
    Brisbane - Sydney
    Does that mean you will just stick you head in the sand like an emu? Hope for the best?
    If I am not cover by the landlord insurance. Every landlord out there will be out of pocket when nobody is working and can't pay their rent.
     
  16. Casteller

    Casteller Well-Known Member

    Joined:
    30th Jun, 2015
    Posts:
    645
    Location:
    Barcelona, Spain
    I expect my Spanish holiday house will be hard to let this year (normally do 6 weeks in summer). Some Russians have already booked a few weeks though before this crisis, maybe they´ll cancel now. Management company has changed policy to allow tenants to pay last minute or cancel without penalty. Another property in Barcelona lease expires June, French tenant leaving, probably will be hard to let immediately afterwards. Along with the plunging $AUD that I use to fund myself here, it´s going to be a sparse year financially.
     
  17. Gockie

    Gockie Unicycle everywhere... except after ankle surgery Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    10,450
    Location:
    Sydney
    I'm also thinking it's highly probable that I won't be going to France in late July this year. So I would cancel that Airbnb booking (of something like 2 weeks). So that owner will be most likely out of pocket.
    I had salary sacrificed for 4 week's extra leave, and it's quite possible I will get that paid out as salary rather than have it taken as leave. Sad :(
     
  18. Traveller99

    Traveller99 Well-Known Member

    Joined:
    22nd Jun, 2015
    Posts:
    119
    Location:
    Settled
    I was just forced to cancel my two week Airbnb stay with a full refund. Feel sorry for the owners as it must be getting tough.
     
  19. MTR

    MTR Material Girl Premium Member

    Joined:
    19th Jun, 2015
    Posts:
    17,529
    Location:
    My World
    I am concerned whether tenants can continue paying rents
    Only saving grace for me is fall of the AUD.
     
    Hetty and Ross Forrester like this.
  20. Mel Morgan

    Mel Morgan Sydney Property Manager Business Member

    Joined:
    6th Jun, 2017
    Posts:
    606
    Location:
    Sydney
    I had my first tenant ask for a rent reduction today. Except he hasn't even lost his job! My response is that until the owners don't have to pay their mortgage & bills, please continue to pay your rent. I have students trapped in Wuhan in another property for months and thankfully they are keeping their rent up to date, after some discussions.
     
    Scaphella likes this.