International student accommodation tenants in financial difficulty

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

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  1. Patrico1966

    Patrico1966 Well-Known Member

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    I know that I would be looking at the point of that as soon as the qualification period comes up for eviction for not paying rent then lodge it- get the paperwork into the system regardless of what any law states. I would have no choice as they appear determined not to work anyway nor indicate they are getting any govt assistance to pay rent. That way I have done that part legally as is my right. I would be taking photos left right and centre of my property before putting the form in.

    One thing I have done in the past is see my local MP, liberal and/or labor and get their advice as well. One of them will go into bat for you and a very valuable ally. It pays to get on the front foot right now. Possibly the eviction notice wont work but then you can work on other avenues as you have suggested. I never allow any tenant advocates anywhere near my property. It is your right to prevent entry. I would not be increasing any technology for them to use i.e internet. These people wont take out any loans, you can bet on that.
     
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  2. Owlet

    Owlet Well-Known Member

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    I don’t think they are playing fair. I’d be tempted to send this, their original letter and any other info you have to the the Prime Minister’s office, local, MP, news outlets.
    I would also change the internet to the slowest, most unreliable provider I could find. Your lease says ‘free internet’ not high speed, reliable internet.
    If you cannot fulfil your obligations under the lease - what can they do? Are they willing to take you to VCAT? I’d stop the cleaning and I’d stop the gardening. They can interrupt their freeloading and studies to take you to tribunal.
     
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  3. The Butler

    The Butler Well-Known Member

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    As things stand at the moment a business will not be able to claim a job keepers allowance for any temporary residents (excluding NZ'ers on 444 visas) or any casual workers that have been working for less than 12 mths for the employer.
     
    Last edited: 5th Apr, 2020
  4. Shogun

    Shogun Well-Known Member

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    Empty room? Maybe time to let a music student learning the drums or French horn move in.
     
  5. Simon Hampel

    Simon Hampel Founder Staff Member

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    Tell them to tell their parents to pay their rent.
     
  6. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    Just read through all the thread and have the following ideas/comments

    Yes I think they are trying it on somewhat. Did they suggest a lower rate in the email or just that they wouldn't be paying at all. They feel that banding together will give them a stronger negotiation point.

    You are now entering into the negotiation space. You can choose to reply with any of all of the following suggestions
    1. a reduced weekly rent (10% less)
    2. you can offer them jobs doing the cleaning/gardening/maintenance in lieu of some rent (ie the person who agrees to clean blah blah weekly will get 50% rent reduction)
    3. you can offer that they can break their lease now with 1 weeks notice if they want to return home - and then rent out the room to a non student etc
    4. is there any chance your place is near a hospital or high risk occupation area? If so then losing the students might allow you to get a different tenant who might be someone who wants to isolate themselves from their family
     
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  7. AnneC

    AnneC Well-Known Member

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    Thank you, some good ideas to act on.
     
  8. thatbum

    thatbum Well-Known Member

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    Look at the end of the day, I think you need to make the hard decision about whether you're willing to risk potentially being stuck with these tenants or not.

    All that other stuff about delving into their alleged hardship is a waste of your time and emotional energy imo. I think you really have 90% of the information you need to know already if you're being honest with yourself.

    If you are saying you can't afford it, then I personally would just send them a very short response saying that. "Sorry but I can't afford your request and intend to pursue the rent and my legal remedies including eviction. You're free to find somewhere cheaper to live for this period".

    Done. And then since the law hasn't changed yet, I don't see why you wouldn't immediately commence the necessary process to obtain a termination order. Its not like you can't pull the plug along the way. But not starting it now (assuming they have started falling behind) is just handicapping yourself.
     
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  9. Omnidragon

    Omnidragon Well-Known Member

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    Out of curiosity, where are these students usually from? Like SEA or Europe?
     
  10. The Y-man

    The Y-man Moderator Staff Member

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    Can't help as such regarding the problem at hand, but some observations from another part of the supply chain:

    1. Students are being offered various support packages, but these are small one-off amounts as discussed in posts above which will not last long.
    2. The census date has been extended by most unis to allow students to leave a course without financial or academic penalty (i.e. refund of fees). However, students may not be aware of this. Other students have tried to defer and have been refused.
    3. Most unis have moved to online mode which means that students may be able to carry on with their studies from their home nation (with perhaps the exception of one major place with a great firewall).
    4. In some cases it is not (just) the student losing work - the parents in their home nations (eg Malaysia, Spain, Italy) are in full lock down and have also lost their jobs, and unable to provide for their kids.

    The Y-man
     
  11. AnneC

    AnneC Well-Known Member

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  12. Marg4000

    Marg4000 Well-Known Member

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    I would advise the students that a condition of their student visa is that they have enough funds to support themselves during their stay in Australia. Any casual work is intended to provide extras, not basic day to day living expenses.

    Anyone who now cannot afford rent will be reported to the Immigration Department as being in breach of their visa and may face possible deportation.

    Two can play this game!
     
  13. thatbum

    thatbum Well-Known Member

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    That seems unnecessarily inflammatory.
     
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  14. Marg4000

    Marg4000 Well-Known Member

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    Will soon sort out if they are genuine or trying it on!

    Every action can have consequences, and if they are just trying to get out of paying they need to be made aware of what can possibly happen.

    And they can certainly forget updated wifi.
     
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  15. Air_Bender

    Air_Bender Well-Known Member

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    Pardon my ignorance but I thought the Prime Minister's message for visitors and international students was crystal clear: Go Home!

    He even made the point that they weren't eligible for any of the Federal Government's grants/payments:

    "
    International students have no access to the Federal Government's JobSeeker payment and are having to deal with the COVID-19 crisis without the financial safety net available to many Australian citizens and residents.

    Mr Morrison pointed out it was a requirement for students who come to Australia to be able to support themselves in their first 12 months of their study".

    I don't know what Victoria's changes to these laws will look like but I doubt they'll have special protections for international students.

    Perhaps send this article to those students and let them know you will be initiating the eviction process as per thatbum's post.

    'it's time to go home' Scott Morrison tells visitors and international students
     
    Last edited: 5th Apr, 2020
  16. AnneC

    AnneC Well-Known Member

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    We intend to speak to each student to discuss their supposedly individual cases and will also inform them that if they cannot really support themselves, then it may be best to return home. It was my understanding that the students should not be relying on their casual work to support themselves. Casual work is just that, casual and not guaranteed employment.
     
  17. Marg4000

    Marg4000 Well-Known Member

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    Also point out other consequences. Maybe they cannot be evicted, but they are still responsible for the rent and the debt will accrue. If they skip the country, this black mark on their record may affect future rental should they choose to return at any time.
     
  18. The Y-man

    The Y-man Moderator Staff Member

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    Those in rooming accomo won't fear this one much as they know most LL won't do ref checks and the name/numbers will prob be fake any way. Totally different issue going thru agent ~students fear getting a black mark thru agents.

    The Y-man
     
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  19. Francesco

    Francesco Well-Known Member

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    The situation is very tricky. International students on study visa are supposed to have their income and health insurance without relying on the host country. Ability to access part time work to help the student offset expenses is an incentive and not guaranteed.

    The States should write the new tenancy code required to tide over this crisis to facilitate Scomo's take on the situation. They should go home or comply with Australian rules of interstate quarantine and get a job in the country. It would be remiss of politicians to create the problem of 6 month ban on eviction and expect landlord to deal with the mess.

    I would take the following steps, multilaterally, incorporating other poster's suggestions:

    • layout the financial situation with tenants, protecting their privacy and modifying response to fit each student's situation. Outline the authorities (governments, educational institutions, utilities) you will be contacting consequential of them breaching their rental obligations and the burden you are bearing. Most students may be encouraged to negotiate in better faith if they perceive that they may be somewhat tainted in the process.
    • talk to lenders and minimise mortgage payments
    • reduce or cancel any utility services, whatever you are able to get away with
    • reduce expenses to minimal outflow consistent with lease agreements
    • comply with any landlord insurer's claim process. Carry out any eviction process under current law if required.
    • feedback to the Commonwealth and the State governments about the situation they have caused and hardship placed on you, through letters/emails to the local politicians and relevant portfolio ministers
    • claim for any Commonwealth payments you may be eligible for in all the packages that have been announced
    • seek alternative avenues for more productive rental arrangements in any vacant rooms
    • ensure that your accommodations comply with Covid 19 rules and that students behave appropriately to minimise infection
    It is a difficult time for all and I hope enough numbers of students will seek alternative accommodations going forward.
     
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  20. AnneC

    AnneC Well-Known Member

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    I suppose there would be a black mark and negative credit rating if it is taken to VCAT?