Rent reduction in unit complex for no access to pool/gym

Discussion in 'Property Management' started by Shogun, 29th Mar, 2020.

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  1. Shogun

    Shogun Well-Known Member

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    A question:

    A tennant in a complex with pool and gym. Unable to use because of current Government requirements. Can they ask for a rent reduction due to services not being supplied?
     
    Shogun, 29th Mar, 2020
    #1
  2. Simon Hampel

    Simon Hampel Founder Staff Member

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    It's not as if they are going to get access to a pool or gym anywhere else.

    Personally I would be telling them (politely) to suck it up and wouldn't be discounting because of that (it's a govt order, not a failure to deliver by the landlord) - but would be interested to hear the views from our resident property managers!
     
    Simon Hampel, 29th Mar, 2020
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  3. Player

    Player Well-Known Member

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    Please direct them here........

    First world problems 2020
     
    Player, 29th Mar, 2020
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  4. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Yes they can ask
     
    Terry_w, 29th Mar, 2020
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  5. Shogun

    Shogun Well-Known Member

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    Even though the landlord/complex is supplying the service. It's the Government Corona rules are stopping the tenant from using them?
     
    Shogun, 30th Mar, 2020
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  6. thatbum

    thatbum Well-Known Member

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    Legally there's a principle where if amenities associated with the lease are not available, it can be grounds for a rent reduction, yes.

    There doesn't need to be any fault on behalf of the lessor either.
     
    thatbum, 30th Mar, 2020
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  7. Simon Hampel

    Simon Hampel Founder Staff Member

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    That was Terry's obtuse way of saying, "Yes, they can ask, no, you don't have to give it to them".

    Whether the tribunal would see it the same way is a different matter - although I think they would want to be cautious about opening that can of worms.
     
    Simon Hampel, 30th Mar, 2020
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  8. Tony3008

    Tony3008 Well-Known Member

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    If your OC levy was being reduced to take account of this, yes you’d be obliged (morally anyway) to pass the reduction on. But of course it won’t be. A couple of years back in my Docklands apartment the OC forfeited access to the pool and gym as a money saver ($500pa in my case) and I reduced the rent accordingly since tenant was a user.
     
    Tony3008, 30th Mar, 2020
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  9. Marg4000

    Marg4000 Well-Known Member

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    Tricky.

    The services are still being supplied, the government is banning access.
     
    Marg4000, 30th Mar, 2020
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  10. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    They can ask for ice cream every monday morning too. But it doesn't mean you have to agree.

    But in this situation you have contacted to supply certain facilities such as a gym which you are now not supplying so they have a legitimate reason to ask for a reduction in rent. Units with gyms rent for more than units without gyms.
     
    Terry_w, 30th Mar, 2020
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  11. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Not this time!
     
    Terry_w, 30th Mar, 2020
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  12. SeafordSunshine

    SeafordSunshine Well-Known Member

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    I would suggest that
    You are proving access to the pool.
    Whether on not they use it is up to them?
     
    SeafordSunshine, 2nd Apr, 2020
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  13. adprom

    adprom Well-Known Member

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    The law in most states is pretty clear. If there is a reduction of services that was provided with access to the property (regardless of reason) then the tenant is entitled to a rent reduction in line with loss of those services. Ultimately they don't pay for something they are not receiving.

    I'd suggest that playing hardball in the current environment is a very short term strategy (good luck re-renting at anything close to a current agreed rate).
     
    adprom, 3rd Apr, 2020
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