Prime Minister's announcement re: evictions

Of course they can move, but will they? As of today Victoria is in Stage 3 lockdown. That's going to make it very hard for people to firstly find a new place, then actually physically move.

It also comes down to getting the references from the existing landlord or PM. If they're moving because they're not able to pay the rent where they currently are, why would the new landlord even entertain the idea of a tenant that's already stopped paying? I'd rather have a property vacant for 12 months than a tenant that doesn't pay the rent.

The realitiy is a lot simply won't and some rental arrears will need to be forgiven. I'm not saying we take a hard line with them, just make sure they're doing what they can. Some of these people have already lost their businesses. Their own plans for the future have come crashing down around them. We also need to be compassionate about this, but we can't let ourselves be taken advantage of either.

I do have a tenant that is already a fortnight behind. They are doing what they can to make it work and I wasn't going to evict them anyway. As long as they continue to work with me, then I'll be understanding. Ultimately we'll likely both be out of pocket, but we'll both also likely get the best outcome we can reasonably expect.

This isn't about the landlords taking a hit or putting it all back on the tenants. The world is in a crisis, everyone is going to have to make a sacrifice somewhere. The more we share the load, the better it is for everyone.

 

I completely agree. Some of the panic on here is ridiculous frankly.

If they bring in an eviction moratorium, its not the end of the world. It literally only makes a difference to lessors that would be seeking a termination against the wishes of their tenant. Think about that. How many would be in the rush to do that anyway during this time?

It's not a rent holiday. Everyone needs to stop talking like it somehow is one.

 

Definitely not a rent holiday, and I do believe the people that can make it work - will. Even if it means part payments or delays, most people are good people and do the right thing.

It’s going to be hard to place tenants, it’s going to be hard on owners with vacant properties or with tenants not paying right now.

Residential tenants will be able to make some form of payment, those that say they can’t pay a cent are honestly taking you for a ride. It will be tight for a lot of people, but anyone that’s had a form of hardship knows that you need to make other sacrifices first.

We’re directing people to Government assistance and to pay what they can, not totally writing it off. Not many can afford to do that, the majority of calls I’ve had are from genuine people who are just freaking out and don’t know what to do and their rent is typically their largest expense.

It’s going to be a tough few months, it’s going to be rough - no doubt. You just need to work with people as much as possible without shooting your self in the foot.

 

Well if my tenant is not paying rent, of course I would be seeking a termination, it is cheaper for me to have it empty and not be able to find a tenant than have a tenant in there not paying, and of course it would be against the tenant's wishes because they are getting free rent!

There is absolutely no means by which we can enforce payment of rent other than the threat of civil action after this is over, which would be expensive and difficult to enforce upon winning the case and they know that especially if they have nothing of value. A theoretical obligation to pay rent is meaningless.

And Tasmania has banned evictions for any reason at all, the tenant doesn't have to show they can't pay, we have been lied to that this is only for tenants in genuine hardship. They can trash your property, there is nothing you can do to get rid of them. They could threaten to trash your property if you don't give them a new air conditioner or whatever they want.

LL insurance won't cover a second claim for the same tenant, so if you can't get rid of them, then you will be uninsured.

I can't believe anyone actually thinks having tenants in place at the moment is a good thing.

 

Oh is it just one or zero is it? Well frankly I think that sort of attitude is terrible commercial decision making, but you do you.

I don't feel bad for one second that this sort of position will be the type banned under a moratorium.

 

In the Domain app, for rental properties, it shows the history of the advertised price. Lots of reductions today; better to get a lower rent than no rent......

 

How is agreeing to reduced rent of any benefit to a landlord if the payment of that reduced amount is still not enforceable.

It just reduces any civil claim I might have against them or my landlord insurance if they still choose not to pay. If they want to take advantage they will get a landlord to agree to a reduced rent, and then just refuse to pay that too.

If the tenant wants to do the right thing and pay what they can instead of nothing, then they can do so and I will appreciate that and not hold anything against them, whether I agree to it or not is irrelevant as I have no choice in the matter.

 

Great post.

Love the concept that you can use Centrelink against a non paying tenant. Be it that in the past I went to eport someone who was using one of our addresses re centrelink payments and they simply were not interested.

Being completely ignorant of the ins and outs of Centrelink are you aware what the centrelink rental subsidies amount to?

 

Just because something is not unenforceable now doesn't mean that the money wont be recoverable in the future. It also doesn't mean every tenant will stop paying rent. I haven't experienced any yet.

Also an unrented property might not be covered by insurance.

 

You don't have to agree to reduced rent.

 

As far as I am aware, there are no centrelink implications of not using rent assistance to pay rent. They can spend it on whatever they want. As long as they do not lie about the rent they are supposedly meant to pay, or their income or something like that, centrelink do not care.

Think of how many people probably use child related centrelink payments on themselves and then neglect their kids, centrelink doesn't care.

 

I think some good points

first need to find out if its legal

self preservation

 

Owner occupier and landlord insurers all have clauses about properties that are vacant for extended periods, it doesn't matter whether it is a tenant, the owner, a friend etc living there, as long as it is not vacant. They usually don't refuse to insure at all, but probably have an increased excess, or require assurance that someone is checking on it, or a few limitations.

Insurers will have many more clauses relating to claims for rent default, malicious damage, especially for a second claim against the same tenant (because they assume you would have evicted the bad tenant, which you now can't), many more outs than they will have for an unoccupied property.

I have just received a response from my insurer regarding what impact this will have on our landlord insurance policies and they say they are still working on it, I am sure they have their lawyers trying to find ways out of paying any claims in relation to this and reword their policies so future customers have minimal cover.

 

Yes. I have just assumed that my insurer will wriggle their way out of any obligation.

 

Is there a way to find out on the history of selling advertised pre-CV19? thanks

 

An RP Data report will include the sales history for a property.

 

I wonder if that 6 months covers tenants that don't have permanent residency?

 

yes it may eventuate as an eviction moratorium, however, zero chance of getting arrears back, landlords insurance only pays 6 weeks (give or take), if you cant evict for 6 months, You are ****ed

 

its as if the government cant see the following scenarios are virtually the same

Tenant loses job, now cant afford to pay rent, governement comes up with stimulus and eviction moratorium, tenant's problems solved

Landlord has no rent coming in, cant evict, landlord cant pay mortgage, goes bankrupt/repossession/cant pay for their own rental or PPOR,

yet the government doesnt do any thing

ludicrous

 

do you think ending periodic leases within the minimum notification period will still be allowed?