How has COVID-19 affected you as a landlord?

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

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  1. skater

    skater Well-Known Member

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    I'm pretty much in the same situation, except half of my loans are now P&I.
     
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  2. skater

    skater Well-Known Member

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    Wait! At this point in time, we don't know what, or if, there will be any help to LL's. Also, Newstart is double what it used to be, and it's untaxed. If your tenant was in a lower income bracket, they may be able to ride this through. Don't jump the gun.
     
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  3. Michael Mitchell

    Michael Mitchell Well-Known Member

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    1. Don't offer rent reduction or rent deferral or anything like that, contract is a contract and arrears and breach process must still be followed so as to not adversely affect any future potential claim on the Landlords insurance for loss of rent, etc.

    2. If Tenant says they've lost their job or had their hours reduced or cannot work, refer them to Centrelink for assistance

    3. Empathize with them - "I am in the exact same situation as you and the Government is providing a safety net for us all via Centrelink" etc.

    4. Side notes: Some Tenants may try and use the argument that a Landlord gets a 'payment holiday' or deferred mortgage for x period of time etc therefor they should get the same for their rent; well actually if you read the fine print it's not great, not only do you have to repay everything that was owed for the period, you have to pay interest on top of that interest. As a tenant, could you afford to pay interest on top of the rent you haven't paid plus your normal rent going forward? Guessing the answer is no..
     
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  4. Tyler Durden

    Tyler Durden Well-Known Member

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    Our two remaining IP's are both let to health professionals at slightly below market so we shouldn't have a problem but word on the street is that the area (coastal lifestyle) is going to see a torrent of new rental listings as Air BnB owners transition properties back to the longterm rental market. I imagine many regional areas are going to see the same scenario play out over the next 3-6 months...

    Not sure the capitals will fair much better either? Sydney and Melbourne had 15000 (Syd) and 8500 (Mel) entire houses and apartments for listed on Air Bnb in 2017. Even if half of these properties are added to the long-term rental market then it isn't hard to envision a supply side shock.
     
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  5. Michael Mitchell

    Michael Mitchell Well-Known Member

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    Typical short term such as hotels and motels will have to adapt and transition to long term otherwise go bust.
     
  6. James Fontaine

    James Fontaine Member

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    Some great insights and things to consider. I have rental Guarantee on my IP through the PM. So I don't really have to get involved with the decisions. I will have to check the contract though to see how concrete it is in times like now.
    With mortgage payments being deferred, would you only have a short period to catch up or could it be stretched over the term? Whatever happens, I hope everyone rides this wave and we can get back on track once this virus is under control.
     
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  7. willair

    willair Well-Known Member Premium Member

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    Just from the sidelines ,one of the daughters just listed one property after settlement last week..

    There was only one vacant last week in that block of five now there are three going by the rental listings on the net ..Daughter just asked Dad is this going to be like when you told me all those years ago to buy CBA at $94.00 when you thought it would break above the one hundred dollars mark..

    Just told her drop the rent,and your's at least the kitchen bathroom is new and the other 2 units are still in the 1990's style and they are all in the same price range ..good luck..
     
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  8. Keentolearn77

    Keentolearn77 Well-Known Member

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    Stress levels going up
    I hope the govt make an announcement soon, as my sleep begins to be affected.
    After tenant has already requested rent be halved last week (more than halved) sympathising with tenant via PM and advising PM that we are neg geared / financially strapped In similar position. Let’s await govt announcements with assistance payments etc and see how we can all work through this together.
    Tenant is full of threats and other unwelcome comments
    Not a nice tenant at all, hoping to move forward with some positive outcome with coming announcements
    OMG
     
  9. Joynz

    Joynz Well-Known Member

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    I have an aggressive and difficult tenant that I want to give notice to leave (in July) before the new Vic legislation kicks in (and I am stuck with them).

    The REA advised me that they had very few people at opens recently so I have to balance keeping the tenants vs the potential that it sits vacant in August.

    However this would be a chance to refresh it a bit. Have to decide this week.
     
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  10. wylie

    wylie Moderator Staff Member

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    I'd choose having it empty over being forced to keep an aggressive and difficult tenant. You should rent it again even if you have to lower the rent. I'd choose lower rent over troublesome tenants.
     
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  11. Ted Varrick

    Ted Varrick Well-Known Member

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    Perhaps if they have lost their job, and can provide you some information on the discount that their home builder has already agreed to, for building their brand new house, then you might be in a position to consider their request.
     
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  12. Ted Varrick

    Ted Varrick Well-Known Member

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    More an overreaction on the tenant's part, rather than the landlord, but sort of understandable if there's a discount to be had without much effort.

    After all, if you don't ask, you don't get.
     
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  13. Ted Varrick

    Ted Varrick Well-Known Member

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    Unstable, or have they lost their job? If the former, they should refer to their lease, if the latter, then they have some Centrelink options to consider, and you also have some options to consider, given this fast changing environment.
     
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  14. Lacrim

    Lacrim Well-Known Member

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    shady.gif
     
  15. Beano

    Beano Well-Known Member

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    Interesting way to view things

    From the Australian angle ...you have done fantastically well as your US income converts to many more AUD

    From a US view hmmh my Australian dollars are not worth much here in the US

    Same situation
     
  16. Michael Mitchell

    Michael Mitchell Well-Known Member

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  17. Hetty

    Hetty Well-Known Member

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    Haven’t heard from tenants yet. Leases were recently signed on both properties. Hoping tenants are in a position to honour them. I’m 27 weeks pregnant so going on mat leave soonish, although we have a good buffer I’ve not got long to go until I’m on half pay. I am a teacher and I’m currently working from home and waiting to see how this how situation with schools plays out. If I can work from home most of the year I might take my mat leave on full pay rather than half pay and work from home with the earlier return, but it’s a risk because we aren’t given much notice for changes.

    Anyway we will help our tenants if they’re in genuine financial trouble. Hoping they don’t ask unless they are. Our IP loans are P&I, as is our PPOR loan.
     
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  18. Omnimaqq23

    Omnimaqq23 Well-Known Member

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    I have just sent a text to my tenant to ask if they're safe and OK and to give me a buzz if they're in any trouble. They seem to be doing OK for now. It is sad to see so many people impacted financially and must be stressful for tenants and landlords alike. Hopefully we can all show a bit of compassion (where we can) in a very very dire and horrible situation right now.
     
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  19. Hetty

    Hetty Well-Known Member

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    My tenants have just asked for a reduction.
     
  20. wylie

    wylie Moderator Staff Member

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    Have they lost jobs?
     
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