VIC Teant asking for 50% rent reduction

True, but I also suspect that if you then try to go to VCAT to evict, the landlord won't get much sympathy.

We made an effort to demonstrate to CAV that we were trying to work with the tenant to get a reasonable outcome. It was only when there was a third party involved that this tenant started to focus on what they could do, not how bad they've had it.

 

I already live in 3x smaller and a lot older house in Syd than the IP
its my choice, but of-course I could have also sold and bought a nice new shiny PPoR instead of investing for the long run
even if you just drive for uber you can afford 360 per week rent but here people expect everything to be handed on a silver plate to you

 

are you also stipulating in revised contracts submitted to CAV that the rent will be re-negotiated after 3-5 months (period when discounted rent is being offered) rather than automatically defaulting back to the amount in original lease.

 

this is indeed very frustrating, they want the LL to offer discount without knowing how much govt is going to contribute in the shortfall. no way to know if LL will be out of pocket by $500 or $2500

 

The grant doesn’t cover any shortfall. If you say the rent is reduced to $1,000 a month, that’s all you get.

The grant is for the benefit of the tenant, not the owner. So if they are eligible for $2k their rent will be covered for two months.

The only waiver I am aware of at this stage for the owner is land tax waivers of 25%.

 

correct, however the grant is paid directly to landlord
for budgeting landlord should know how much will be paid (if any)
if tenant is eligible for for the full $2k than probably the the LL can take that into account and offer the rent reduction keeping that in mind

 

Our agreement states that the rent will revert to the original amount after a specific date. It also lays out how much they need to pay by key dates. Pleased to say that so far they're ahead for schedule.

 

thanks I found the CAV have published a template too https://www.consumer.vic.gov.au/lib...nting/temporary-rent-reduction-agreement.docx

 

To be eligible the negotiated rent needs to be over 30% of the tenants income and the tenant does not have to apply for the grant if they do not wish.

You’re best to negotiate what you believe is fair and reasonable, and direct the tenants to further assistance if required.

The tenant is liable for the full amount of the reduced rent whether they get the grant or not. This can be enforced via VCAT if necessary.

Edit: If you are doing a once off reduction it would help to know what the difference would be so you could accomodate the tenant. But it’s still up to them to apply for the grant, so any reduction you offer based off that could see you further out of pocket. Base any reductions off your situation first and see if you can meet somewhere reasonable with the tenants situation.

You can also lodge your agreements online and get a reference number. This can be used for the grant for the tenants and land tax waivers for the owners.