QLD REIQ comments on Renters and Landlords

Discussion in 'Property Management' started by Simon Hampel, 25th Mar, 2020.

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  1. Simon Hampel

    Simon Hampel Founder Staff Member

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    Queensland property price fall 'inevitable' due to coronavirus, industry figures say

    Renters and landlords also to come under strain
    Ms Mercorella said the REIQ's immediate concern was tenants facing eviction for not being able to make their rent.

    "Around 35 per cent of the Queensland population rents," she said.

    "The vast majority of that supply comes via the private investor, so given the predicted job losses, we are concerned about the impact that will have on a tenants ability to make their rent obligations.

    She said the REIQ welcomed any support governments could give to tenants.

    "Equally, what we need to be cognisant of is that the vast majority of that rental supply is coming from private investors — mum and dad investors — and they will have their own obligations at the other end to the bank." Ms Mercorella said.

    "So the challenge will be how we protect tenants in this in this environment, but also supporting owners who ultimately — if they don't meet those obligations — will end up defaulting on mortgages, and ultimately having to sell those properties and losing those properties, which will mean that we all lose."

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    She makes a good point - the long term outcome for tenants is not good if investors are forced to sell their properties due to no income while still needing to make loan repayments.
     
    Simon Hampel, 25th Mar, 2020
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  2. SatayKing

    SatayKing Well-Known Member

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    They are good points. Wondering if the investor do have to sell to whom? Other investors just waiting to pounce in which case the property would be available for rent?
     
    SatayKing, 25th Mar, 2020
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  3. Player

    Player Well-Known Member

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    Not only would many investors have their own obligations to banks and the like, they could also have job losses of their own within their family unit. Well and good for some tenants to scream rental strike during an eviction amnesty, landlords for the most part provide affordable housing to many families that takes a housing burden off governments, state and federal alike.

    In my own mind I'm forecasting at least three months rental loss/forgiveness through my portfolio averaged over every tenancy. These are extreme times and I don't think it's unreasonable for investors to not come to the party as well.

    We don't know enough yet, however it would not be unreasonable for tenants to provide Centrelink eligibility/approval after a job loss stemming from the pandemic. I would then make sure I take the ride with them. Not sure how property manager scan ascertain hardship and differentiate from fraudulent default.
     
    Player, 25th Mar, 2020
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  4. Archaon

    Archaon Well-Known Member

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    With the talks of a halt to evictions, you may have tenants that arent paying rent, and cant sell Vacant position.

    Was brought up in another thread.
     
    Archaon, 25th Mar, 2020
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