If you were a tenant......

We've got friends in Sydney and family in Perth who are in similar situations to what @skater describes, the exception is both groups have savings and are professionals and in industries which should kick off again once some semblance of normality returns.

The Sydney guys are renting on the lower north shore, they're living off savings until their gov assistance comes through. They plan on moving in with his family once their lease ends in May, they should be able to save some money and with some luck get into a cheaper rental in the same area.

Family members who rent in Perth own property on the east coast (previously Air BnB let), if they get to the point where they can't make ends meet then they're going to sell everything up, pack the car and move back east.

I'm sure some will attempt to move amid the chaos but many will simply scrape by on savings, government assistance and rent reductions or simply move in with friends or family. Signing a new lease right now (and trying to move), would be the last thing that I'd recommend to anyone who isn't in an absolute last resort scenario.

 

Time to live within their means.
Goes all the luxury items. Those are for the well off and have savings to do that.
I think people have forgotten to live with what you have earned. I do remember my grandpa tells me stories of real hardship. Young people have no idea aka gen Y.

 

Personally, I believe there are two ways to act. Responsibly ( doesn't necessarily mean moving homes though) or entitled. That's it.

You would be behaving responsibly imo. I understand folks will find themselves in all kinds of different financial situations. There are no easy solutions. But I firmly believe we all need to do our bit and make sacrifices beyond what we would normally do in times like this. FYI I haven't paused my interest repayments because I don't need to. It would be easy for me to pause it and use the funds elsewhere. It has crossed my mind but I don't believe it's right.

Anyways that's my opinion.

 

IF tenants of a property were no longer able to pay (hardship), would you pause interest repayments on that property?

 

Yes I would. But they would have to legitimately not be able to make full payment. I'd expect some kind of payment. I don't believe most folks wouldn't be able to pay at least SOMETHING.

 

This is the way I think as well. I know full well the effects of tenants who just stop paying because they didn't have enough money that week. They don't say to themselves "Oh dear, I'm $50 short of my rent, I'll only pay $250 instead of $300." No, they say "Oh dear, I don't have enough for rent, so I won't pay". This will be the same, but on a much increased scale, although I believe that most people try to do the right thing, there is an element that will take advantage.

Those that think responsibly will look at their situation and try to reduce their rents, but in the long term, if the rent they CAN pay is too far removed from the amount they NEED to pay, will take the option of looking for cheaper accommodation.

 

When this is crisis is at an end, Australian citizens and residents will do well to remember the Govt help they received in some way**. It is hoped in future they are more forgiving towards Govt for providing the unemployed with Jobseeker allowance or providing housing for the homeless. Sometimes life throws you a curve ball.

**Not everyone will directly benefit from the current Govt payments but without this intervention, the entire economy faced collapse and everyone is affected in some way, directly or indirectly.

 

if i were a tenant and the landlord has been delaying repairs and other essential requests, i will be delaying my rent!

but if the landlord is nice and superb, i'll pas as normal (unless i have no money and will therefore negotiate).

 

well, you are eligible for $1100 per week per couple due to stimulus, that leaves you $300 per week which isnt much with kids

 

spot on, this

its almost like they go for the all or nothing mindset,

 

Quite a few people wont be eligible for it, they may see their family income drop by 40-50% , but if their partner earns more than 80k then there is no benifit, casual employee's with less than one year at current employer get nothing , many employees with a serious underlying condition like Type 1 Diabetes , Cystic fibrosis,
Heart and lung conditions will have to cease work and go into self isolation , I dont think many of these will be covered if they voluntary stopped work.

 

OPs example was that they both lost their jobs, and im assuming theyre not non residents

 

1. Negotiate with landlord about delayed payment of rent until they have some funds. Agree a repayment plan in the future. Moving now is too dangerous for them and society in general.

2. Learn to budget. Any family with 2 decent wages over a decent period of time should always be in the position of having 6 months expenses saved. I have deep sympathy for those in low paid or insecure work (which doesn't sound like these people). But let's leave the cars on finance, up market apartments and private school fees until you've got a bit of a buffer.

 

I would never have put myself or family in that position to begin with.

$800pw rent for a unit? Oof. Time to move city.

But for the sake of the scenario:

• Attempt negotiation with landlord or move (if necessary).
• Withdraw from super.
• Cut all unnecessary costs.
• Apply for any benefits I'm eligible for.
• Sell any other luxury items I have (if I have an expensive car, chances are I also have an expensive TV, phones, laptop, etc).
• See if my employer would take me back on a lower income (e.g. via the JobKeeper arrangement).

 

I am a tennant in Sydney and I am currently stood down on zero pay.
Fortunately renting is a lifestyle choice for me not a financial one but were that not the case...

I would contact the landlord advising the situation.
Work out what I could afford to pay and offer that. These are the only two realistic options.

Property chat is predominantly landlords, so as a tenant I'll point out some flaws in most peoples solutions.

1) Goverment assistance probably wont enable you to afford your entire rent anyway. My own rent exceeds what I am eligible in goverment benefits, some people are not eligible for anything.

2) Moving house can be expensive, especially if a family is involved. It is unlikely they can afford to pay the moving expenses even if they wanted to.

3) Have any landlords or agents here accepted a tenancy application for a family with no or little income who are probably in arrears to a previous landlord?

4) Are there even rental viewings on at the moment, and are removilists available?

5) Does moving house comply with the intention of 'essential travel' in your state.

I think the best thing is to pay what you can, especially if there is a reasonable probability you will be on the payroll as soon as this mess starts to calm down.
A assume banks are giving mortgage relief to investment properties (I dont know), and if the reduced rent is merely a reduction to your ordinary income be thankful you even have one.

 

We just rented out 2 properties over the weekend.
One was a unit that just wasn't renting as it is carpeted rather than tiled. Rent is $340pw.
The other property is a 3 bed townhouse which was only empty for a week renting out at $480. We thought we would have to negotiate pm even mentioned the we would be negotiable but they took it at the price as they were going to save $120 and moving from a unit to a townhouse with a decent yard.

We have 2 tenants requesting rent reductions.

The one that is going to be a problem is on some sort of visa that denies them Centrelink help.

The other one is a mum with 3 kids. She gets nearly $800 per fortnight through FBT Part A and B but no other support from Centrelink as she must be getting some sort of alimony. She had $41k in the bank when she applied for the property in May last year. As a couple they sold a property just prior to May where they cleared $250k. I leased this to them on the basis that the Ex was in the background and funds in the bank. Her rent is $340pw.

Her reason for claiming hardship was that her online business, about which I know nothing, is slowing down. We have never seen any activity that would indicate that there is any sort of business as she has been very busy with a baby.

I will be maintaining the Centrelink line as based on a single mum with kids and the Corona bonus etc she would be getting about $1000pw and that is not including any rental subsidy nor the Part A and B.

We will see tomorrow how this progresses.

 

The mum with the 3 kids will get plenty from centrelink even if she had a business that isn't paying it's way. We've got one just leaving who was paying $370pw. Single mum, 3 kids. No other income. Could pay this before the Corona bonus came into effect. Only leaving because we gave her notice a month ago.

Yes, and yes. No open homes, but you can have private viewings.

Yes, you are allowed to move house.
.

 

I would sign up with centrelink, skip paying rent for 8 months. Maybe declare bankruptcy so that the bank can't come after me. Maybe have another kid to get extra government benefits. Learn all about FIRE and home-brew.

 

Move and be approved for a new lease with no job?

Which landlord here would sign a new lease with two unemployed people?