Non paying tenant - It's started.

Discussion in 'Property Management' started by GoneFishing, 1st Apr, 2020.

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  1. Dan Wood

    Dan Wood Well-Known Member

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    It's also not starting until May? Correct me if I'm wrong they're backdating it though..
     
    Dan Wood, 2nd Apr, 2020
    #21
  2. abc_123

    abc_123 Well-Known Member

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    Suncorp have suspended all landlord insurance sales. So I don't know where this will leave people who have renewals coming up soon like me... we may be no better off
     
    abc_123, 2nd Apr, 2020
    #22
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  3. Beano

    Beano Well-Known Member

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    No renewals I suspect
     
    Beano, 2nd Apr, 2020
    #23
  4. skater

    skater Well-Known Member

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    That rental figure is quite low. I've got/had many centrelink customers paying a similar amount of rent each week, with no issues.

    With such a low rent, tenant should still be able to pay, but may have some issues until the new payments come through. If LL is dependent on the rental income, the net result of tenant not paying is just transferring the hurt from the tenant to the LL.
    I feel this is a good compromise.
     
    skater, 2nd Apr, 2020
    #24
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  5. abc_123

    abc_123 Well-Known Member

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    Yes I wonder if you can even take out a normal building and contents building for a rental property to at least be covered for non tenant caused stuff.
     
    abc_123, 2nd Apr, 2020
    #25
  6. Simon Hampel

    Simon Hampel Founder Staff Member

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    I know EBM and TS were renewing policies. They don't want to have zero clients after all of this.

    It's just new risk they are avoiding.
     
    Simon Hampel, 2nd Apr, 2020
    #26
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  7. Simon Hampel

    Simon Hampel Founder Staff Member

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    Nobody has said anything about not offering building & content insurance - there is no increased risk there. It's only landlord insurance which is the issue in light of the new eviction moratorium.
     
    Simon Hampel, 2nd Apr, 2020
    #27
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  8. HUGH72

    HUGH72 Well-Known Member

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    Very risky, you have left yourself open to personal injury claim. Once this pandemic is over get some.
     
    HUGH72, 2nd Apr, 2020
    #28
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  9. abc_123

    abc_123 Well-Known Member

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    Suncorp is building, contents, landlord combined policy. So not sure whether they offer the standard building and contents for landlords. I guess some insurers must for people that have the separate landlord insurance.
     
    abc_123, 2nd Apr, 2020
    #29
  10. Hebro

    Hebro Well-Known Member

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    If tenants say they cannot pay, would one response be to let them know that you have to put it on the market, and that they will need to make the property available for inspection?

    This is a real disincentive if they say they will not pay, but really wish to stay in the property.
     
    Hebro, 2nd Apr, 2020
    #30
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  11. MTR

    MTR Well-Known Member

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    I just reduced rent for a tenant

    i predict many rental properties will come on the market

    there is also access to self managed super fund $10,000
     
    MTR, 2nd Apr, 2020
    #31
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  12. Hetty

    Hetty Well-Known Member

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    Yep, we renewed with EBM yesterday. Accidentally let it lapse but fortunately it was only two weeks overdue.
     
    Hetty, 2nd Apr, 2020
    #32
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  13. Propertunity

    Propertunity Well-Known Member

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    You'd have to read your PDS :)
    Maybe it is time for insurers to share some of the pain too? .....not just the banks and the LL.
     
    Propertunity, 2nd Apr, 2020
    #33
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  14. wylie

    wylie Moderator Staff Member

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    We're in an odd situation, not as straightforward as accepting lower rent just due to Covid.

    We have two houses that are part of our DA. We accepted lower than market for one house because several potential renters weren't interested due to the obvious building site next door. They both have jobs and hopefully will keep their jobs.

    Friends of ours rented the other house 16 months ago, also slightly under market for the same reason.

    With our friends, we've twice foregone a week's rent. Once several months ago to get a machine through the side yard. When wet weather stopped that happening, they offered to repay that week, and we said no.

    Last fortnight, with people not paying him (self-employed), and them nearly two weeks behind, I wiped another week to lower the pressure to catch up. I know they are trying to access some super. I believe he cannot get Centrelink but I know they are looking at all that.

    And today they are allowing a concrete pumper to run a line through their yard which helps our builder. Another tenant could easily have said no.

    We've also lowered their rent by $100 a week for the next four weeks as we are about to build a deck on their house. This was meant to happen 14 months ago and we'd agreed to add $20 a week once the deck was built, but we won't do that now. They will have some noise, so I've said cheaper rent for four weeks and let's see how things are by then.

    If we need to reduce rent further as this Covid thing unfolds, we will do that. We will work with these very good people because they are vulnerable, they are friends and I know they would help us if we needed help.

    The other house we hold has a tenant in a secure job (I hope) so I'm crossing my fingers that they can keep paying rent, because I have to keep paying our mortgage, rates and we are continuing our build.

    Our construction payments are ramping up. We've allowed for them of course, planned for a long time, but we need rent coming in to feed ourselves.

    We will get through this, might take a financial hit, and that might last some time, but if we come through with health intact, able to feed ourselves and hold on for better times, I'm happy.
     
    wylie, 2nd Apr, 2020
    #34
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  15. Bazza

    Bazza Well-Known Member

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    I just reduced one tenants rent by 30% until he receives JobSeeker or JobKeeper allowance then it goes back to normal. I figure it is better to get 70% then nothing. The tenants are grateful.
     
    Bazza, 2nd Apr, 2020
    #35
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  16. abc_123

    abc_123 Well-Known Member

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    Well there is certainly nothing specific in my pds either way, and I have asked my insurer and they are unwilling to provide a position yet. However to pay out the rent default, the tenant has actually have to left leaving arrears before a claim is possible. So I suspect that the insurers will remove rent default from any renewals they offer and by time these rules have been lifted and we actually get them the non payer out, we will no longer be covered for rent default and have no claim?
     
    abc_123, 2nd Apr, 2020
    #36
  17. abc_123

    abc_123 Well-Known Member

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    I can understand the companies that specialise in landlord insurance renewing as that would impact their business a great deal, but insurers where that it is only a small part of their business I can certainly see them deciding to dump it for the time being.
     
    abc_123, 2nd Apr, 2020
    #37
  18. MTR

    MTR Well-Known Member

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    Whats really important is pro active property managers

    median resi rent in Australia is $430 pw

    Corona Stimulus package. -

    A couple with 2 children, paying 30% of their centre link payment plus rental assistance would be able to pay $472 per week rent and still have $912 per week to live on
     
    MTR, 2nd Apr, 2020
    #38
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  19. Antoni0

    Antoni0 Well-Known Member

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    Yep, I've experienced the same, the best payers even when you raise the rent they get a higher subsidy from the Govt.
     
    Antoni0, 2nd Apr, 2020
    #39
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  20. abc_123

    abc_123 Well-Known Member

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    Well whilst landlords insurance policies are clear in the pds that the number of weeks or amount of $ they cover is limited, I would hope the insurers aren't allowed to hire a bunch of lawyers to try weasel out of paying what appeared to be covered to an ordinary person reading the pds.
     
    abc_123, 2nd Apr, 2020
    #40
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