NSW No evictions in Sydney

I am talking the the post where adprom states:

Show me where you have any right to see a tenant's personal financial records?

And you responded:

Wrong logic. You need to show me where its prohibited. Otherwise its fair game

 

I had a tenant question his rental increase citing that it was more than cpi. I have no issue with the tenant asking this. In return, we were able to show him his increase was below cpi and covered an 18mth period with no further increase.

 

Exactly, its fair game to ask for in negotiations.

Do you disagree or something?

 

Under no circumstances would I offer my tenant a drop in rent. I would not evict them without due cause either. The rules are too loose on this eviction/rule/procedure/advice- whatever they call it. Govt has had ample time to get a policy in place on this. Any shortfall in rent should be paid for by the govt. That is how the $550 should work.

 

There is a difference between asking for it and having a right to see it. The initial position was that there was an implied right to see it (certainly providing tenants with hardship forms expecting them to complete them insinuates this).

Asking for them, at the moment sure you can do that... Although asking for proof of super access and government benefits is that grey area which ASIC is now looking at. So I think asking for certain things is fraught with danger.

So you expect the government to underwrite your investment risk in a downturn? You invested in property which is a risk. That's not how it works.

Good luck with an empty rental for 12-18 months.

60-80% of something is better than the risk 100% of nothing. It will be up to each landlord whether they want to take that punt.

 

When negotiating with tenants it's fair game to ask for a tenants personal financial records?

Correct - I disagree.

Besides, what exactly would you hope to achieve with that information? Offer advice of a financial nature?

 

No its not , many were just being used as tourist accommodation, as it turns out in places like Hobart, Cairns inner Sydney area and the coastal suburbs like Bondi and probably many more , and it still dosnt answer the question i asked

 

So I'm curious then, what advice or leverage do you suggest tenants use in negotiations with the lessor?

 

So you expect the landlord to underwrite
the tenants rent in a downturn? The tenant signed a lease which is a risk. That's not how it works.

 

It is an investment. It is not a guaranteed return. We are in a downturn.

My definition the investment is the landlord's risk. One of those risks is that a tenant loses the ability to pay. However due to the downturn there may very well be inability to pay and low prospects of re-renting in short to medium term. That was an accepted investment risk at time of investing.

 

If the tenant is in distress communicate the matter and seek tempory rental relief to a level that can be afforded.

The landlord can accept, or reject.

Whether the landlord is satisfied in his/her mind that the tenant is suffering hardship is irrelevant as it is not thier determination to make.

Rejection is somewhat pointless as the tenant will not pay if the tenant decides they cannot pay and in the current environment the tennant can not be evicted for it either.

I sympathize with landlords in that the problem has been hand balled up the chain to them, and the whole thing is open to abuse, but neither of us make the rules.

 

Playing hardball with an owner may mean you get a big discount on rent. But it can also backfire. You are basically betting that the landlord wont, or cannot afford to, press their legal rights.

 

Except that is how it works as the rules have just changed.

 

Sure... so you are looking for a new rental in a market where landlords will do anything to keep a property occupied?

Something I didn't think of is that entire airbnb/short term stay economy has been entirely shut down which will bring additional supply onto the market. This will be an absolute tenant and buyer's market.

A lot of opportunities coming up if you have the ability.

 

Once the centrelink applications, increase in newstart, business grants start paying, the political winds will change again.

 

The area my properties are in are still in strong demand. So personally this type of letter would suit me well but maybe not for you.
Remember any unpaid rent becomes a debt payable down the track. If u reduce the rent you'll have no recourse to recoup the difference.

 

Yes it is. To answer your question, landlord's costs also go up every year (rates, land tax etc)

Bzzzt wrong.

 

1. The landlords costs have nothing to do with what a property is rented at. The market supply and demand dictates that. The supply, demand and what people are willing to pay just changed overnight.

2. The rules did change - besides, you evict someone and then what? Can't really argue that, it is a just a fact. Also as I said elsewhere, all those properties in the short term rental market just got added to the supply of housing... Fun times.

 

Would you not say a fixed-term tenancy agreement is guaranteeing that return though and provides the Lessor legal rights to extract that return if the Tenant does not make good on it?

This is different to say investing in shares (speculative), or building a spec home and the free market determines what it sells for (speculative), or capital gains determined at a future point in time (speculative), etc. Vs. 12 month fixed-term lease @ $500 per week = $26,000 (not speculative - defined and guaranteed by the contract)

 

You are definitely trying to decrease the risk - but there is always a risk that the tenant ups and outs without paying (although you always have their bond). The bond is effectively the only real guarantee you ever have.

Sure it mitigates the risk, but never completely removes it (as this circumstance is showing).