Tenant Financial Hardship Application

Hi All,

I thought I'm sharing with you a form that is recommended by RJ Sanderson.

https://www.rjsanderson.com.au/wp-content/uploads/2020/03/Tenant-Financial-Hardship-Application.pdf

It's quite elaborate and not too bad.
Hope it's useful for some.

Thoughts? Feedbacks? from Landlord or Tenant point of view?

 

Professional and proactive approach by your agency.

 

It's good but inviting tenants to ask for a reduction, so I wouldn’t send it to tenants until they enquire.

This is my current pro-forma, haven't had to use it yet, as above, I will only send to Tenants who enquire and are adamant they can no longer meet their obligations.

View attachment 37179

 

I'd ditch all of the hardship advice, any tenant of average intelligence will view any such advice as condescending and you'll immediately have them offside (both of our tenants are better educated they we are!). Unless they've been living under a rock they'll be aware of what help is available.

Focus on the second paragraph if you're concerned that certain tenants are going to plead ignorance and attempt to take advantage of the situation.

Whether it's your advice or not encouraging people in hardship to use credit cards or personal loans is completely unethical. You're a property manager dealing with tenancies not a financial counsellor.

 

Many thanks for sharing, this looks good, pretty comprehensive. Might have to add some State-specific questions, after we hear from our Premier....
Hopefully we dont have to use it on any of our Tenants.

 

That's quite a good form. Very thorough.

 

My intention is to NEVER have to use this form

 

This was shared on a PM Facebook group too and has been doing the rounds. I think it’s great, we’ve been tweaking something similar - but waiting on some further details to make it more specific and now with the Job Keepers announcement will need to update to include this.

 

Anyone happened to know if tenants need to give some form of proof for loss of work or income before defaulting on rents ?

 

...? They're not allowed to default on rents.

 

Not in landlords interests to agree to any form like this.

Soon, it will be impossible to take action on tenants who do not pay in the rest of the states.

The landlord may be happy to agree to a lesser rent that the tenant can pay, but the lesser rent will not be enforceable in any case.

If the tenant still fails to pay rent despite the lesser rent, the landlord agreeing to the lesser rent, just reduces any civil claim they might later have, or a claim against their landlord insurance.

Better to not formally agree to a lesser rent for the landlord. Perhaps ask that the tenant show they contribute what they reasonably can. If the tenant shows that they are contributing something reasonable, landlord will be assured that they are not being taken advantage of and will continue with their obligations to repair etc and no hard feelings. Landlord may then have the option to recover unpaid rent at a later stage, but may choose not to if the tenant has tried their best.

 

Yeah, I realise that but if they play on the 6 months ban for evictions and claim hardship and default, from my understanding you can't throw them out for a 6 months period, I'm ok with it if tenants are experiencing real hardship but how are they going to prove it's legit, for all you know they might still have a good paying job that's only reduced a few hours a week and still capable of making rent payments.

 

Well my point is that what difference does it make whether you're okay with it or not? You can't do anything about it until the moratorium is over.

 

The difference is that it's fraud but I get what you're saying.

 

I guess the difference is that if the landlord actually agrees to a lesser rent, then they can never recover more than that after this is over, and may get taken for a ride. So it would be better to not actually agree to anything. Just tell tenant something like you understand this is a difficult time, and appreciate that they would contribute what they could towards the rent, so as not to get them off side, since you can't do anything anyway, but not actually formally agree to anything.

 

Also I don't think any property manager should really be advising their landlords to sign or do anything at the moment except abide by the current law until it changes. Unless the property manager has actually consulted with a lawyer, then they shouldn't be giving their landlords advice at this time.

 

If anyone uses that form, just be sure to fix small errors.. Eg.

"I have applied for Centrelink benefits including Rest Assistance".

Meant to be rent assistance.

 

We happen to live next door to one of our tenants, he informed me yesterday as we always say hello to each when going to work because our cars are side by side, that our PM emailed them saying they can't get evicted in the next 6 months for not paying rent, we've been sent absolutely nothing about it. This tenant struggles to pay rent on time at the best of times.