Prime Minister's announcement re: evictions

Hi Simon they are on a fixed term lease that expires in September I think I need to accept that they don't want to move early and yes I will find some cheaper accomodation I've only just arrived back in Brisbane after leaving Sydney in a hurry so I got an Airbnb for 2 weeks.

I'm still uncertain though about how to handle any negotiations about a reduction in rent. certainly my initial reaction is that I don't want to reduce the rent because I have given them the option to go somewhere more affordable. also I don't know what they're hardship situation really is (potentially they could both be getting $1,500 a week now with no kids)a also uncertain how to verify that. And the other unknown is if I stick to my guns whether or not I would be likely to be able to get back any arrears. as you point out investors don't really know how this legislation is going to be applied to protect investors

 

I offered to pay the moving costs that they don't want to move at the moment they said it's too stressful which is fair enough. They have a lease. The request for a discount hasn't been repeated one property manager I'm speaking to said if they've been offered the opportunity to break been the lease in response to hardship then they shouldn't be granted a discount. I don't know if I will be that hard line but i'll see if they come back and ask for discount again.

 

Still waiting for Victoria to announce what we’re doing. It’s been an interesting day though.

Mostly been doing deferrals of half the rent as an interim option for this month, pending further announcements. Didn’t want to leave tenants in the dark, but also don’t want to jump too quickly on reductions especially because there’s issues with insurance to consider as well.

We haven’t done any ongoing reductions, but a a handful have asked me to waive a portion of the rent. Some want to see that the tenants will at least pay what they’ve requested as a deferral and then will be looking to credit an amount to them at a later date, these tenants don’t know that yet though so that will be a nice little surprise down the track.

Hopefully some clarity this end soon, I think NSW, Tassie and maybe (?) QLD have officially made some changes. This is not yet the case here.

 

https://www.theage.com.au/politics/...ace-coronavirus-quagmire-20200406-p54hj9.html

Well it looks like Resi property is either being put in the too hard basket or nothing will be done

If you were being completely consistent to landlords and tenants,
There would be a mortgage freeze on all/some loans, with discounts
None of this waived land tax garbage which is peanuts compared to rent

Or better yet, all/proportionate mortgage payments paid by the government for every week the tenant doesnt pay full rent

 

That's crazy, they're just going to let us defend for ourselves.

'National cabinet will not consider residential tenancies when it meets on Tuesday, leaving the sector in limbo.'

 

As uncertain as it is, the government has taken its time to try and put forward effective stimulus and thoughtful policy in this time instead of quick knee jerk reactions under huge pressure. Time will tell what comes of it.
Only thing u can do is remain patient and with a clear mind, negativity will drain u and any decision u make won’t be your best.

a friend of mine who’s English isn’t the best offered me a saying which translates to something like this.
don’t make a promise when your happy and don’t make a decision when your angry. (Not 100% perfect translation but hopefully u get the drift)

 

In VIC they haven’t waived land tax - deferred it until 2021 for those people who have investment properties with land values of less than 1mill.

 

But they have done something - the eviction moratorium is equivalent to tenants being able to defer their rent, and the JobSeeker payment and Rental Grant (Per Person!) are enough to cover most peoples rent.

Call me crazy but the way I see it, the industry as a whole as no idea how to apply what I just summed up in the first sentence, and this is evident by the Real Estate Institute of Australia (REIA) pushing media statements encouraging landlords to give rent reductions when it is not needed because of the welfare packages I summed up in the second sentence.

The other problem is Tenants have this entitled attitude (like what comes across in CMCM's first post), that they should be protected and immune from going into debt on rent, and that they are victims of 'greedy landlords'.

Tenants are consumers, the product is rental accommodation. I just cannot understand how the whole world doesn't see this as a commercial transaction like going to shop and buying a carton of milk. You pay money and you get something. You choose to shop with who you want. Tenants make out like they've got no choice.

I don't think there has ever been a more empowered consumer than a Tenant in this day and age with all the protections, rights in the tenancy acts, and the support from the well funded advocacy groups (Just look at Tenants Queensland and Make Renting Fair campaigns in Qld, pushed by the ALP & Greens).

Landlords aren't crying poor, Landlords are crying to get paid for the product their selling, just like the super market and the petrol station..

 

Pretty well every report that has come out from the last 5 years has shown how disproportionately our laws favour landlord over tenant rights in Australia.

Compared to the rest of the world, landlords have an unusual amount of power here. Too much. Especially compared to countries where renting is considered the norm like Germany - Tenants and Landlords are on a much more even keel.

Multiple recent articles about this:
Australian rental laws lag the rest of the world because of ‘petty landlordism’: experts

Renting for life? Housing shift requires rethink of renters' rights

Australia lagging behind world on protecting renters, tenants union says

For most renters, what other choice to they have than to rent? Actually milk went through this, with arguably anti-competitive behaviour from coles and woolies with how they treat their suppliers so maybe not the best example there.

You might argue... well they could go and get another rental. That doesn't make security of their housing any better. You can't just choose not to have housing.

The only answer, as our PM said is that Landlords and Tenants are going to have to work together. That means Landlords need to accept that they are going to have to provide some leeway on rent levels instead of the current attitude and allow reductions. There is no escaping that.

What are you suggesting, tenants take out a credit card and start using a cash advance or personal loan to pay rent when they don't have a job in a crisis like now? This is the exact mentality that landlords have had with making "helpful" suggestions like... just access your super that regulatory bodies have had to stamp out.

 

That is an avenue that the tenant may wish to pursue. It is not the landlord's responsibility or obligation to fund the tenant.

 

We don’t (yet) have a rental grant here, and the average rents that I have are in excessive of $500pw. I also have a fair chunk of singles in properties, so when their income dries up what is being offered barely makes a dent in their rent. I also have a substantial amount of temporary visa holders who are so far receiving no assistance.

Sure there’s an argument that they all should have a buffer, but that’s not the reality of it. A number of my singles in apartments have their own investment properties too, so not only are they struggling to meet their rent it’s a double edged sword because their tenants are also not paying/struggling.

Don’t get me wrong, these assistance packages are good for a lot of people. However there’s been a lot left in the dark and someone that was earning over $100k pa is unlikely to be able to meet all of their expenses earning $1,500 per fortnight less tax. It’s just not feasible.

Yes, they should be cutting down expenses. Defer their loans for cars, call whoever they have gas and electricity to push back payments etc.

I feel that the assistance being offered is unbalanced where it will pay a casual worker who usually earns $250 per week the same amount as a full time worker who usually earns $2,000 per week. Just doesn’t seem right to me.

We’re tenants as well and hubby is about to take a pay cut to the $1,500 fortnightly. We’ll be fine though as we have a buffer, it’s going to mean tightening the belts a little which is not an issue. I can see how easily it could be though.

 

Yes that is something reasonable that tenants can do so they don't fall behind in rent

 

No landlord is funding a tenant. I don't see landlords giving tenants money here. This idea what somehow landlords are funding tenants and paying for tenants expenses absurd.

So ruin their financial credit with no ability to pay... But that's ok cos the landlord gets every dollar.

Sorry but no, I don't think tenants putting themselves into that situation in this extraordinary situation is something any reasonable or humane person would suggest is a good idea. Hence the moratorium to give everyone time to work some of this out, negotiate rent reductions etc.

 

i could think of multiple reasons why the REIA is encouraging rent reductions etc.
- REIA feels the stimulus isnt sufficient
- even if sufficent, the "entitilement" mentality of tenants being predicted
- being influenced/kahootz with the governement

I havent said they havent done anything, theyve virtually done nothing for landlords, the tenant aspect of stimulus I think is very generous, I have friends from USA, Japan, Singapore, Thailand, France, Greece, turkey, and none of them are getting this much assistance

you have no disagreement from me on that one, I discussed this with my 9 year old and she said "why is a tenant allowed to not pay rent and the owner has to accept it" , even a 9yr old understands it

Ive been talking to many friends from overseas, and when I tell them about what our governement has done eg stimulus, they're usually like "wow"

 

who would have thought eh?
taking action for a contract you signed to put a roof over your head, now that your circumstances have changed,

edit: using credit cards or super may not be the best solution, but in the right direction

 

There is another simple explanation. In a time of such great job losses the only reasonable solution is that everyone gives a bit which means landlords need to accept reduced rents.

There is no entitlement. A lot of people just lost their jobs and are renegotiating how to get by.

They are taking action. Negotiating with supplier of a service within their rights. It may not be the action many on this forum may like but as raised by the PM a perfectly reasonable option. Absolutely nothing wrong with that. As has been highlighted - everyone will need to work together to reach reasonable outcomes.