International student accommodation tenants in financial difficulty

Discussion in 'Property Management' started by AnneC, 4th Apr, 2020.

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  1. adprom

    adprom Well-Known Member

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    Well knowingly disconnecting a utility deliberately with tenants present would land you in all sorts of hot water for not complying with building codes.

    As it stands, it takes a couple of months and written notice for electricity to be disconnected. I expect there will need to be a moratorium on electricity and gas disconnections. I think phone and Internet will be added to this list as well... but a lot of the providers already are not disconnecting or suspending services anyway.
     
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  2. abc_123

    abc_123 Well-Known Member

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    They might consider it essential, it isn't considered an essential service according to law.

    A landlord doesn't have to provide it, it doesn't even have to be available at the property in order to lease a property.

    A builder doesn't have to provide facility for an internet connection when building a property.

    A property doesn't have to have internet in order to be considered habitable.

    An internet service provider is not obliged to provide an internet service to anyone, nor to continue to provide an internet service to anyone.
     
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  3. AnneC

    AnneC Well-Known Member

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    When they apply for a Student Visa, they are overseas and do not have employment and so cannot provide an income tax return.

    Also, the amount that they need to have to pay for their stay is much more than our rent. Our rent is about $8,000 per year and that is all inclusive of all bills and fully furnished. So, what have they done with the other $54,000?

    Annual Income Option
    The annual income option requires students to provide evidence of personal annual income of at least AUD62,222
    In all cases, the evidence of annual income must be provided in the form of official government documentation, such as a tax assessment.

    Students can only work a maximum of 20 hours per week.
     
  4. abc_123

    abc_123 Well-Known Member

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    An internet provider might be choosing not to disconnect internet services due to non payment but they are not forced to.

    Unless new laws are passed, I do not see how an internet service provider could legally continue to bill a landlord for an internet service the landlord had requested to be disconnected. It isn't considered an essential service. An internet service provider is not legally required to provide an internet service at all to anyone under current laws. Let alone to provide services to someone who does not pay.
     
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  5. AnneC

    AnneC Well-Known Member

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    It is a service which we provide as part of their accommodation. It would be interesting to see if we still need to provide these services as well as accommodation, when we are not getting paid.
     
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  6. adprom

    adprom Well-Known Member

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    I was referring to electricity and gas.

    The internet comment was an aside. You are right, account holder can cancel internet with no repercussions. Although it is reduced amenity (but if no one is paying... meh).

    As I said though - I expect the moratorium will apply to internet and phone. But that doesn't stop a housing owner disconnecting. That will be more for tenants who cannot pay their phone/internet bills.

    I think some people on this forum/thread forget this is a large disaster and thousands of people are losing their lives every day.
     
  7. Antoni0

    Antoni0 Well-Known Member

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    If the LL is already in a lot of debt and knows they can no longer pay for utilities in the near future and advises the service provider of that, I would hate to see the sort of litigation that would arise from it. I really don't think it will be a simple black and white response.
     
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  8. adprom

    adprom Well-Known Member

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    Subletting will be another one... Rentals are very well regulated... I fear what will happen where people are paying for a room etc on informal or less protected agreements.
     
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  9. abc_123

    abc_123 Well-Known Member

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    Well perhaps in student accomodation or no seperate meter it would be more complicated and I do not know how that would work. But generally owner cannot be billed for tenants electricity usage. Otherwise why aren't tenants just not paying electricity right now and the owner is getting billed for that?
     
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  10. adprom

    adprom Well-Known Member

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    Single shared meter. In that situation the LL is responsible for the utility usage (a little bit state dependent).
     
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  11. abc_123

    abc_123 Well-Known Member

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    Yes this will be interesting. As normally the tribunal I guess offers a rent reduction for services not provided, or repairs not done, or allows the tenant to terminate their lease. But since tenant is paying zero and landlord would be happy for them to leave since they are not paying, they will have to come up with some further punishments for landlords...
     
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  12. AnneC

    AnneC Well-Known Member

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    Not to mention the other services, like being called up at midnight that they have locked themselves out of the room and need to get inside their room or need their light bulb changed etc
     
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  13. wylie

    wylie Moderator Staff Member

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    I’m guessing your leases state you provide all this? I doubt you can do anything. Maybe you can clean yourself? if there’s no detail of how much internet is included you can drop it back to the lowest plan.

    I’d guess if you trim right back the services that are written into the lease down to the most basic - to fulfil your obligation to them under the lease they can’t complain whilst they are failing to fulfil their obligation to you under the same lease.

    This sounds tit for tat but they are the ones deciding not to pay any rent at all.

    You can’t shut off power or you will be in big trouble (even if they stop paying rent - how lopsided is that?)

    But if you clean the place yourself and take over the garden care and reduce their internet to the cheapest plan you are still fulfilling the lease terms (check it first). They may not like how you clean or may not like having crappy internet and might decide to start paying what they can.

    Of course, they may also trash the place. I’m sorry this is happening to you. Maybe play hardball whilst still providing what you must provide via the lease.
     
  14. Antoni0

    Antoni0 Well-Known Member

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    AFAIK in Qld they direct bill the LL for water on IPs, then the PM or LL bills the tenants.
     
  15. Michael Mitchell

    Michael Mitchell Property Manager Business Member

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    @AnneC - Have you got the option to apply to tribunal to have all leases terminated sic: frustrated contract / hardship on your part, move them all out, shut it down to stop the bleeding. Restart post-crisis. Another alternative, the above but instead of shutting down, temporarily change them to long stay rentals for 6-12 months on residential tenancies not rooming accommodation agreements if possible? Guessing there would still be extraordinary challenges and exposure though from non-shared meters, etc. probably not worth doing. See if ARAMA can help in some way re: guidance?
     
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  16. adprom

    adprom Well-Known Member

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    If they started trashing the place, I'd hope calling the police might bring some order back! Optional things such as cleaning could go on hold (but would be hard for an owner to see things going south). Also... the cultural differences I think would be a challenge in this situation. This is a properly hard situation. Probably could do with its own thread.
     
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  17. AnneC

    AnneC Well-Known Member

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    My age and health wont allow me to do the cleaning or gardening. Not an option.
     
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  18. adprom

    adprom Well-Known Member

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    The tenants are being idiots about it too... This is interesting. You are approaching a unique situation where you simply may not be able to remain operational. I have no idea how that is dealt with. Given the service you provide you might want to contact your state and federal MPs.
     
  19. AnneC

    AnneC Well-Known Member

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    Thank you, I will look into that. I would have thought that
    Yes, I will look into that. I would have thought that if they were not able to pay for their stay in Australia, that they were not longer eligible for a Student Visa?
     
  20. wylie

    wylie Moderator Staff Member

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    Don’t do them to a high standard... ;)
     

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