If you were a tenant......

I'm going to propose a hypothetical situation. Please comment below what you would do, if this were your current situation.

Family of two kids & two working adults. You are a respectable couple, who pay your debts and always try to do the right thing. You are renting a very nice unit in a desirable location. The rent is $800pw. You have little savings and you also have various other debts that need to be paid. Car, Credit Card, Personal Loan. Your kids are in private schools.

All of a sudden life throws you a curve ball. We have a pandemic & both of you lose your jobs. The school has suspended all tuition fees, you've spoken to the bank in regards to the Credit Card & the Personal Loan & they have provided some relief. You've sold the expensive car & bought a much cheaper one for cash, as you need to have a car. This leaves you with rent that is way too much for someone in your new scenario. What would you do?

 

Two options.

1. Try to work out an agreement with my LL which not only looks after my needs but that too of the LL and their obligations. No entitlement ****.

2. Move and rent something cheaper.

Also goes without saying, do a strict budget to cut down as much as possible. Trim any and all spending which is non essential.

 

Yep, move, would be my choice, because even if my LL was in a position to reduce my rent to half, when this is all over, there is no guarantee that both myself & my partner would be able to get back into the workforce immediately.

 

Agree. Also, most renters at the best of times don't have that much saved. So after 6 months of deals, if any cash builds up for that time period it's highly unlikely you'll ( as a LL) ever see it again.

LLs are making adjustments and expecting turbulent times. So too should renters. We ALL need to make sacrifices.

 

Are there any easy options in a pandemic though?

 

I’m not sure about the ‘respectable’ label - can be subjective.

I would look at accommodation options that I could afford, break lease and move. In the meantime I would use our JobKeeper payments to pay for shelter and food. I would look at both of us accessing our super so I could wipe our personal loan and credit cards debts - this would relieve a lot of financial pressure and stress. Any remaining super I would put aside for the kids education and our healthcare. I would also draw up a budget and adjust to our new reality - I may need to cancel the Spotify and Netflix subscriptions, change phone plans etc and tighten the belt. I would also focus on my kids and quality time with them doing the simple things - home made food, games and craft using what can be found in the house, a walk with the kids, reading with them etc.

 

I hear ya. I just think we all need to make tough decisions.

Also when this is all over, id be more than happy to pay a Corona levy to help our country. I think every Australian needs to.

 

I would move to somewhere cheaper.

 

This is true.....but it is allowed. Desperate times call for desperate measures & my sense of survival would cut in & tell me that moving was the only option. I acknowledge that I may not feel the same as others in the same situation, hence why I asked the question in the first place.

 

Apply to Centrelink, get something. You'd still be behind on the rent though. When the pandemic is over, move house to something cheaper, likely leaving behind a significant amount owning to the previous landlord. Hopefully their insurnace will cover it. The landlord unlikely to ever recover it from the tenant that owes them money, but they did get something from Centrelink in the meantime.

 

The hypothetical is ‘as tenant what would you do?’

 

This is true. My meaning in this instance is that I'm not one to 'game' the system. If I have money, even if not all of it, to pay my rent, I will. I wouldn't be looking to pay no rent.

 

This is correct. If you were the tenant, faced with these circumstances.

 

Very true.

 

If you were the tenant, what would you do?

 

If I wanted to use this situation to my family’s advantage and not act respectfully, my response would be quite different.