Tenant Wants 70% Rent Reduction

baybeejuice on 05/04/2020 - 10:28
Last edited 06/04/2020 - 22:40

Our tenants (a early 50s bf, gf and the gf's son) moved into my 3 bedrooms townhouse in last Dec and signed a year's contract for $470 per week. Yesterday, i got a phone call from real estate saying the tenants broke up and the male tenant is the only one living there now. He's a painter and now has zero dollar income. A screenshot summary of his 3 bank accounts showed $0, $2 and -$10. He has applied for centrelink. Now he's asking for rent to be reduced from $470 to $150! Now we don't know how to go about this. Any advice?

Edit:
Thanks for everyone's advice and comments.
The lease had only the bf's name on it. He had income of $1000 per week when applying for this property. As part of rent reduction prior to moving in, he already painted the whole place. Also, our current home that we are living in was painted 2 years ago.

Edit #2:
Correction: Just had a look at tenant application, the male tenant that is on the lease was getting $2100 gross income per week.

Home & Garden

Comments

      • Narull on 06/04/2020 - 11:28
        +2

        Thing is that tenants aren't taking into account with the 'no evictions' thing is the Gov did also say you DO still have to pay rent, so anyone who stays rent free for 6 months will have debt collectors coming after them once the 6 months is up.

        It's not 'free rent for 6 months' it's 'you can't be evicted for 6 months' but that doesn't stop your rent from piling up and you going into debt for it.

        • JoJoker on 06/04/2020 - 12:00

          That gamble is up to the landlord to take. Personally, I'd negotiate with the goal to get as much cash as I can for as little hassle.

          • Narull on 06/04/2020 - 12:27
            +1

            @JoJoker: Oh I agree, that's why I said he should have a counter offer, sit down and discuss it. Going the stance of a flatout 'no' do this or leave for free isn't the right answer but this thread be crazy.

  • jmel on 06/04/2020 - 11:45

    Do you have landlord insurance? If so i'd suggest giving them a call to see if you are covered under this circumstances

    Also did you investigate if you can change the agreement to just a room, and have the other rooms leased separately if your managing agent is willing to do it

  • moneyhungry on 06/04/2020 - 11:56
    +5

    A friend of mine is a painter and he is flat out with work. This guy just want's to take advantage by the looks of things.

    • kiitos on 06/04/2020 - 12:10
      +1

      That's interesting, we have been in contact with a painter and his work has dropped right off with people cancelling jobs due to not wanting him in and around the house. I would have thought that would be the case for a few non essential trades like that.

    • dbun1 on 06/04/2020 - 12:31
      +5

      Yep, our business is taking advantage of everyone working from home to get the refurb done.

      Cafe across the road closed up due to the restrictions and the next day had tradies all over the place renovating.

      Yes, there will be a lot of people cancelling work due to no income coming in, but plenty of others taking the opportunity of a forced shutdown to get stuff done.

  • moneyhungry on 06/04/2020 - 12:01
    +5

    Maybe get your own house painted from him and when it comes to payment, offer him 70% less, see how he likes it.

  • popsiee on 06/04/2020 - 12:12
    -1

    A couple points everyone seems to have missed in this thread :
    1) Some people even if eligible will not apply for Job Seeker .
    2) Most leases state no sub letting and surely during these times nobody would want too .

    • gstfree on 06/04/2020 - 13:00

      Re 1) I know someone who was made redundant due to COVID 19 not going to apply for Centrelink assistance. ( At least this was what she told me).

  • trapper on 06/04/2020 - 12:47
    +18

    It's mind blowing that people can be in their 50's with no rainy day fund.

    • Ghost47 on 07/04/2020 - 10:14
      +2

      Maybe I just have low expectations of people in general but this sort of thing isn't a surprise to me whatsoever.

    • dcep on 07/04/2020 - 15:21

      well that's like 70% of aussie households

  • Mythreesons on 06/04/2020 - 12:54

    Aren’t unemployed about to be getting over $500 a week plus the $750 x 2 payments.

    • Eeples on 06/04/2020 - 16:37

      Yes, but apparently he can job-hold himself and get $1500/ft.

  • gstfree on 06/04/2020 - 12:57
    +7

    If you agree with any reduction, insurance company will not cover any shortfall.

    Do not agree now and wait for a couple of weeks before things become more clear.

    During the difficult time do not chase the money too hard. Any outstanding debt remains legal liability of tenants and eventually this will pay off. I think gov should provide a loan to cover rentals and repayments similar as higher education loans.

    • sarahlump on 11/04/2020 - 00:54
      -5

      That is a ridiculous solution. You can't just keep piling debt onto poor people, we should not be made to take out a loan to pay for a landlord's 53rd house.

  • Zachary on 06/04/2020 - 14:07
    +3

    Well, look at what I found after browsing my ymail: https://au.yahoo.com/finance/news/a-landlords-guide-to-coron… - should be relevant to your situation, OP; hope it helps…

  • whoopdeedoo on 06/04/2020 - 14:49

    rent the other room out

  • brad1-8tsi on 06/04/2020 - 16:08

    A painter only earning $1k/w? As if. Is he only working 2-3 days?

    • baybeejuice on 06/04/2020 - 23:02
      +1

      I just looked at the tenant application, he was earning $2100 gross income per week. He was a contractor for a painting company

  • abc123z on 06/04/2020 - 16:23

    Like the link zachary posted.

    Do you have landlord insurance - if so reducing the rent or agreeing to extra time to pay will affect your ability to claim so check your pds and check with your insurer before you agree to anything. Although my insurer isn't speaking in regard to the new laws yet.

    It looks like if you are in qld there is zero benefit to you to agree to anything until he has claimed under the rent relief scheme as per the link.

    Also, keep in mind that if you do agree to a rent reduction, and he still fails to pay that, then you still cannot evict him, you are still receiving zero rent and you have now substantially reduced any future claim you might have against him when this is over!

    It would be best not to enter into any formal rent reduction agreement for now I think at least until the laws are clear in your state, but accept that he won't be able to pay the full amount for now but continue to go through any motions that you are forced to by your landlord insurance (you can let him know why you have to do this so not to upset him too much).

    But I do think allowing him to get in a second tenant to share with, that you have screened and is acceptable of course, might be a good idea.

    • Snoochem55 on 07/04/2020 - 00:09
      +3

      Regarding rent reduction, not being able to claim the full amount from my landlord insurance company after agreeing to a reduced rent with the tenant was my concern as well.

      Then I realised that maybe just waiving 1 month of rent now would work better. It gives the tenant time to sort out alternative sources of income via Centrelink and then continue paying the full rent after 1 month. If after 6 months they are behind then I can serve a notice to evict and make a claim under my landlord insurance for loss of rent and be paid out on full rent.

  • abc123z on 06/04/2020 - 16:29

    Also I just noticed you have a real estate agent managing it have they offered you any actual advice? If not what are you paying them for?

  • neonlight on 06/04/2020 - 18:42
    +3

    Damn he should just move out and live somewhere else, you don't need to accommodate too many people use excuses and dramas, can't afford it the move simply

  • LFO on 06/04/2020 - 19:22
    +2

    I'll say it is up to you and nobody else.

    Do you want him to stay?
    Do you want to try to lease to someone else in the current climate?

    Would you feel satisfied if he stays paying reduced rent?
    Would you feel satisfied if he is ask to leave being unable to pay?

    It is up to you.
    What anyone else feels or thinks is rather irrelevant.

    YOU will have to live with your decision.

    You need to decide based in your values, your principles and your expectations.

  • paloverde88 on 06/04/2020 - 20:24
    +5

    landlords also rip people off during good times, they keep raising the prices have tenants compete with one another so regardless of good times or covid 19 bad times, one thing's for sure there's one of the two just gouging
    I have seen agents writing to tenants during good times saying you've had a good run as we have not raised your rent last year so as a result this year will be higher raise than the usual, and this is during good times. Constantly looking ways to self serve in bad and good times

    • wordplay on 08/04/2020 - 19:36
      +1

      they are absolutely trying to have it both ways. go to an inspection and get told rent is $450, but we have had over 30 people look at it today and have at least 3 people who have offered $20-30 more per week, if you really want to have a look in i suggest you offer more. Oh and your not planning on having a baby are you?

  • Gamer Dad Reviews on 06/04/2020 - 20:57
    +1

    You can refuse to reduce the rent, but you can't force him to pay if he literally doesn't have any money. In such a situation, your only recurse would be to evict him. Except that you are not allowed to evict him for the next 6 months. So basically all you can do is take the hit and evict him in October.

  • Dubsys on 06/04/2020 - 22:01
    -1

    Why are you passing the buck of paying for your mortgage on to somebody else? if you can't afford the home you shouldn't have to pass the buck to a third party to pay the bank on your behalf.

    • tsunamisurfer on 07/04/2020 - 12:43
      +4

      Passing the buck does not ring true.

      If you are investing, you are probably expecting either capital growth or passive income or both.

      It is logical that any income derived would be used to pay off any debts that come with it.

      While I accept that a LL should plan for a period of no income and have mitigants, you are suggesting the LL is not allowed to expect the rental returns at all as a source of funding.

    • jowu15 on 07/04/2020 - 23:38
      +4

      What are you talking about!!! You think landlord should provide accommodation for free!!!

    • pe arl on 09/04/2020 - 21:59

      So most landlords have a house they can't afford?

  • ratman on 06/04/2020 - 22:01
    -7

    All renters a stupid poor scum anyway, leeches on society. Definitely kick him out and make sure to make up some hilarious reasons to keep all the bond too of course, will make for a good laugh at the yacht club.

    • [Deactivated] on 06/04/2020 - 22:26
      +5

      I don’t understand this idea that landlords are all very wealthy and lacking compassion. The majority of landlords are going to be families who are hurting from COVID-19 by losing their hours or jobs altogether too.

      I also don’t understand the tenant bashing comments either, and blaming them for not having a rainy day fund. So many people live pay cheque to pay cheque, and it has nothing to do with how hard they work or with spending frivolously.

      But OPs tenant isn’t entitled to live in an expensive rental property for next to nothing. He’s single, there’s no reason he shouldn’t be able to find somewhere smaller within his means.

      • ratman on 06/04/2020 - 23:33
        +1

        I'm just having a laugh tbh. Depending on the thread and forum these discussions can have wild swings. That said, if you own or mortgage or rent with 6months salary in cash, i reckon you're still one of a very fortunate minority of people.

        • Ghost47 on 07/04/2020 - 10:17
          +1

          Or just knowledgeable enough to not impulse buy crap that will essentially be worth $0 and save at least 10% of your paycheck. Unfortunately people don't realise the importance of saving.

  • JCrown9 on 06/04/2020 - 22:09

    Sort of unrelated.

    if someone stops paying rent to take advantage of the 6months and not be evicted.
    If they start paying the rent again at the end of the 6months; can they still be evicted?
    What would be the reasoning for the landlords to evict that tenant?
    Is this a potential loophole for tenants to get away with? Or has this been addressed by the government at all?

    • Snoochem55 on 07/04/2020 - 00:01
      +4

      In that situation, at the end of the 6 month period he will be in arrears, equal to 6 months of rent. If he starts paying rent again it will go towards paying that off first.

      You can then serve him with a notice to evict with I think 7 days to get back on track with the rent.

      This is how my landlord insurance company explained it to me this morning. If the tenant ends up evicting then you can make a claim for loss of rent.

  • letmesee on 06/04/2020 - 22:20
    +7

    Although it is unprecedented times, and compassion needs to be displayed, people are also taking the piss with some of these comments. Yes an investment property is a speculative risk but the person with the mortgage has usually sacrificed other parts of life's enjoyment in order to save for a deposit and maintain payments over 30 years. Most forgo social nights out or holidays on a regular occurrence to do so. If a renter can honestly say that they have been financially responsible, think and behave like things could go south at any time, then I'm all for compassion, but in reality this crisis has highlighted that people have no concept of financial security even for short periods of time, and would rather get the latest phone/big tv and go on a holiday than think about the future.

    • ratman on 06/04/2020 - 23:37
      +2

      Most people simply don't earn enough $$ and don't have rich parents, so no safety net. I know the answer is obvious, they should just get a better job and invest in more coal.

      • Jugganautx on 09/04/2020 - 10:38

        Hahaha you're making it sound like we live in America where every low skill job makes $2 an hr.

        Woolworths shelf stackers make $23 an hour and $26+ after 6pm.

        Taking the piss for sure.

        • ratman on 09/04/2020 - 16:45

          Taking the piss for sure.

          Yep, anyone who thinks someone can survive long term on $23/hr casual hours as their sole financial support is definitely taking the piss.

          • Spending2Much on 09/04/2020 - 16:55
            +1

            @ratman: I earn $26.11 for a bus driver, ordinary hours, (not Saturday after 12pm or Sunday) casual basis.
            $990 per week if I do 38hrs.

            • ratman on 09/04/2020 - 17:32

              @Spending2Much: That's great. I guess "survive" was a bit harsh, the spirit of the scenario is that have that wage while simultaneously "setting up for life" i.e., paying rent, saving up 20% the value of a house to buy, and putting enough away to have 6 months full salary covered "just in case".

              26.11 for 38 hours is 990/wk before tax, about 760 after. Using the basic barefoot breakdown, thats a solid 25 years to save a deposit for a house at the current median price in Australia's most populous city. Add to that saving $20-30k for "just in case".

              Not exactly the situation that you can expect every human to have already achieved.

  • lysp on 07/04/2020 - 00:27
    +5

    This was posted on reddit.

    The redditer sent a request to their REA/LL and received this form back.

    https://imgur.com/a/mIxNyl2?

    The main parts are:

    • evidence of reduction of income

    • amount of rent reduction request

    • a date / amount of when they will repay back the missing rent

    • a signed declaration saying they are being truthful in their application.

    It all depends on your financial situation I guess and how much you are financially able to sustain.

    You could offer them a choice:

    • 10% rent reduction with no repayment (ending 1 month after they are re-employed or after 6 months)

    or

    • 30-40% delayed rent with repayments in full of total amount reduced (on top of standard 470 rate) starting after 6 months.

    It's hard to know if they are being truthful or trying to take advantage.

    • dbun1 on 07/04/2020 - 08:12

      My REA (Victoria) said that they would be following the Tenant Hardship Application process as currently that is the only mechanism available within the current rules to check against.

      The REA said that they will be serving rent arrears notices to tenants that simply stop paying with no communication or hardship process being followed.

  • fusion17 on 07/04/2020 - 00:55
    +6

    People keep saying it's the landlord's risk buying property and not having spare cash for times like this.

    Edit #2:
    Correction: Just had a look at tenant application, the male tenant that is on the lease was getting $2100 gross income per week.

    Not saving for a rainy day when earning so much is a risk if I ever saw one. Sheesh.

    • Ghost47 on 07/04/2020 - 10:22
      +1

      It's plain stupidity, and there are a lot of stupid people on this planet, like straight up idiotic clueless people who you look twice at and wonder if they've ever lived or met anyone outside of their own friendship group. Expecting all adults to have the sense to save a part of every paycheck they receive will only end in disappointment.

    • MrBear on 07/04/2020 - 11:55
      +2

      Not only that, but he had 2 other room mates, so his rent would only have been ~$160 / week if they went thirds of the $470/w rent.

    • funnysht on 09/04/2020 - 12:39
      +1

      It' not about the risk. it's more about the government mandating a policy such that your income is reduced. It's like telling shareholders, yes we'll take 50% of your profits or telling workers there is a 50% levy for the next 6months to pay for the job allowance and then leaving it to the shareholders/workers to get the money back at the end of the 6months.

  • hikaru78 on 07/04/2020 - 09:03
    +2

    At the end of the day, it is supposed to be everyone taking the pain.

    There will be those who genuinely are in hardship.

    There will be those who will milk it for all they can get for it.

    The fact that they have asked for 70% tells me that it is the later.

    The gf and gf son leaving has nothing to do with the landlord and is really not relevant to this.

    Sure the landlord and tenant should try to find some common ground and try to renegotiate in good faith.

    As far as I'm concerned asking for 70% is not good faith.

    I would be asking for a stat dec from his employer that he has been stood down.

  • koplik8 on 07/04/2020 - 10:19
    +2

    Awww I’m an owner and I’m sad for you. I know I couldn’t afford to make the whole mortgage repayments on my investment property. I’m not rich. I guess people assume cause you have an investment property your loaded. I’m about to go on maternity leave soon and want to move back in there. My tenant refused to sign a lease extension last year. We gave him notice in early March. I was afraid there would be a loop hole after the rules changed and there would be no evictions. The agent confirmed it was all good. There are plenty of cheaper rentals. I’m sorry I dunno what your going to go. Ask the bank for a 6 month mortgage hold. I was reading the fine print on mine and it increases your monthly payments down the track

    • Hangryuman on 09/04/2020 - 09:32
      +2

      'Ask the bank for a 6 month mortgage hold. I was reading the fine print on mine and it increases your monthly payments down the track'

      that's no gift from the banks - it adds interest to interest, so that's money for jam for the banksters.

      kinda like credit card debt - where if you pay the minimum each month, the interest compounds so your $10K debt can end up costing you like $30K or somesuch.

      How kind of the banks to offer that …

  • Andysjunks on 07/04/2020 - 14:25

    It's a bad situation and the pandemic made it worse.

    Tenant has indirectly made clear he has no capability to pay and most likely wont pay any rent by telling you no jobs lining up and zero bank account balance. He's asking a reduction to stay/dragging on the negotiating table waiting for you to call him bluff. And at the end of day he can always say he tried his best to offer something than nothing.

    If going back a bit further I would not accept such household structure to lease. Put anything under the same roof with parents in law, children from previous relationship, layer on top of just gf/bf relationship is nothing concrete and falls apart easily, and yet an agreement to paint the place to reduce rent is just plain saying they can't afford it.

    Don't expect any better for him to find flat mates, the same kind people tend to get together.

    I know i sound very cold but it is how I see it.

    • Hangryuman on 09/04/2020 - 09:29

      yes - signing a lease with one party then letting their friends stay there after they've moved out is a recipe for disaster - that's a very large AVOID …

  • oliman on 07/04/2020 - 14:38
    +4

    The renter must be an ozbargainer, wanting minimum 70% off!

    • 91rs on 07/04/2020 - 15:24
      +1

      I hear they asked if the LL was signed up to the cashback app too or would accept payments in enloops.

  • Typical16-bitEnjoyer on 07/04/2020 - 14:43
    +8

    LOL, Check out the upvotes and downvotes on the very first comment.

    Landlords be triggereddddddddddddd

    • ozhunter on 07/04/2020 - 14:52
      +4

      Haha, looks like it could be a new record.

      Very easy to ask/expect others to be compassionate when it's not coming out of your pocket.

  • bobolo on 07/04/2020 - 14:54
    +2

    $2k a week and the tenant has no savings?

    What about tenants? Are they void of all responsibility when they sign up a lease? Or does being a tenant allows you to spend recklessly day to day?

  • [Deactivated] on 07/04/2020 - 16:53
    -1

    A 70% reduction in rent up until the social restrictions are lifted sounds reasonable given the alternatives available to you.

    • ozhunter on 07/04/2020 - 17:11
      +9

      Not 95%?

      • TEER3X on 11/04/2020 - 11:53

        Don't be silly. The landlord should obviously be paying the tenant to stay there so they ensure the grass grows as high as it can.

        Should also throw in a slab of beer every week.

  • Hardlyworkin on 07/04/2020 - 17:15
    +1

    I was always told to be careful when the painters are in.

    • baybeejuice on 07/04/2020 - 20:23

      Why's that?

      • Hardlyworkin on 07/04/2020 - 20:36
        +1

        Sorry, poor attempt at comedy.

        • TEER3X on 11/04/2020 - 11:54

          I know a guy who paints houses

  • jugsy on 07/04/2020 - 17:24
    +2

    Next time make a more stable investment if you're not prepared to roll with the punches.

    You haven't specified if your goal is providing housing or acquiring capital, so the answer is different depending on your priority.

    • Quantumcat on 12/04/2020 - 22:31
      -1

      Are you being funny? There's hardly anything less risky with less returns than property, except maybe leaving money in your bank account with a 0.5% interest rate

  • Kitchenhand on 08/04/2020 - 09:11

    If your accountant can find away to cover the short payments of rent with a tax write off, Then why not. Does your current residence need painting ? or a friends? Maybe another way to help make up the difference.

    • abc123z on 08/04/2020 - 09:19
      +1

      If you rent your property out at wildly below market value you cannot claim any tax deductions beyond the rent received ie no negative gearing at all.

      ATO is clear on this.

      • Kitchenhand on 08/04/2020 - 10:33
        -1

        I'm not rich so thanks for the correction.Guess it stops a lot more tax dodging, especially renting to family under market .But don't be surprised if by Late may early June there is a concession if the Virus hang around longer than everyone is hoping. Its been mentioned in press conferences already. The government should of really covered this by now with commercial at the same time.
        We need to get rid of negative gearing- Its social security for the wealthy.You either have a business that does investment and needs to be profitable( like a normal business) to survive or you dont . Keeping it inflates housing. Getting ride of it will reduce home cost for those that cant afford a home now. You generally need only one home to pay the $550000 for a nursing home if your are the sole owner / occupier. If there is other members on the family living in the house for over 6 years then you get a discount and subsided rate.So i dont by this for retirement shit
        We are a lucky country really- otherwise no one could afford the current level of debt

        • Chang1992 on 08/04/2020 - 12:43
          +4

          We need to get rid of negative gearing- Its social security for the wealthy

          Negative gearing also provides a competitive rental markets and to an extend a more affordable rental market, as with negative gearing investors can claim back some of their loses through tax deductions. Without negative gearing, land lords would burden the loss they make on the property and likely to increase rent of their investment properties.

          Without land lords providing renting properties, it would be up to the government to spend billions to support social housing, which will have other implications (like creating "ghetto suburbs").

          • wordplay on 08/04/2020 - 19:45
            +2

            @Chang1992: its propping up an artificially high property market, making owning a home un-affordable for many, not creating a thriving rental market with affordable rents for the lower earners.

            • Quantumcat on 12/04/2020 - 22:39

              @wordplay: If investing in property became less financially beneficial less houses would be leased, there would be less available for tenants and rents would be much higher (both due to it costing landlords more and due to less supply).

              After some time house prices would fall, and property investment would pick up again as it would become beneficial again.

              But during that transition time, renters would find themselves homeless or having to rent terrible properties that didn't suit them because it was all they could afford.

              After the transition time, SOME renters would find themselves able to buy their first house, but there are many people who can't buy no matter how low house prices get - anyone without a deposit or who is in the process of saving, anyone on unpredictable wages or those who have just started their job. These people will be screwed if there is a shortage of rental properties.

              Long story short, you can't just pull out negative gearing willy nilly. It would need a long period of very gradual scaling back so as not to cause a shock to rental house stock and the economy in general.

        • Hangryuman on 09/04/2020 - 09:26

          no question the 'market rate' is down the toilet at the mo'

          but I think the key element of that is 'family or friends' - indicating you are not really taking the risk in the open market, and so if you are receiving less than market rate rent, then your tax deductions should not be the same allowed.

          the principle of tax deductibility being that you can claim expenses for investment, not for personal/family or friends.

  • aboogee on 08/04/2020 - 13:08
    +1

    my observation, there are 5 broad groups of people here in Australia
    1 landlords that are wealthy enough (based on their own definition of wealthy) to think landlords should cover the shortfall
    2 landlords that are just barely making it thinking "wtf?"
    3 people who are neither here nor there, potentially those who are not affected
    4 tenants who are genuinely working hard and try to fulfill their obligation thinking "wtf?"
    5 tenants who are… well i dont have a good description…. who think landlords should cover the shortfall

    • Miss B on 09/04/2020 - 13:44

      I'm a tenant who's just working normally. Grateful to have a secure job and even get to do it in my pyjamas now. Will just keep paying rent as normal.

      But seeing that their income was $2100/wk I am a bit WTF. Think they're taking the piss a bit. Probably have the money sitting in another account. You can pretty much have unlimited bank accounts.

  • bobolo on 08/04/2020 - 14:38
    +3

    Landlord or tenant, everyone needs a buffer of savings for emergencies like this.

    Landlords are not a charity, and tenants aren't a secure revenue source either

    Landlords who are leveraged up to their necks with no buffer deserve pain when s**t hits the fan

    Tenants who live paycheck to paycheck with no regard for obligation to a lease agreement also deserve pain when s**t hits the fan

    Those who have done the right thing and are genuinely in distress are the only ones who deserve assistance, landlord or tenant

    At the end of the day, the issue we are dealing with are irresponsible adults

    • SnoozeAndLose on 08/04/2020 - 20:05

      So after stating your opinion, do you have any suggestion to OP?

      • bobolo on 08/04/2020 - 21:01
        +3

        Isn't it obvious?

        The tenant earns (or used to earn) $2k a week and can't afford $470pw rent the moment his work stopped. If I was his landlord, I'd show zero sympathy unless he could prove an extra ordinary circumstance like a disability, child support, him being a carer of a close family member etc that's sucking up all his funds.

        Also, from earning $2k per week to $0? Doesn't sound right even in these trying times

        What about govt grants everyones been talking about?

        Sounds like an irresponsible smoocher to me unless he can prove otherwise (and he will need to if he is essentially asking for free money)

        If he can't I'd rather kick him out purely out of principle. And someone this bad at managing personal finances will likely end up defaulting in rent again anyway. People still need housing and are actively looking for affordable options. Can easily fill that vacancy for $150pw or more

        • funnysht on 09/04/2020 - 11:04

          I rather fill that vacancy with a honest family who can only afford $150pw than this guy who wants to live in a 3bdr place by "himself"

  • AyjeofSpades on 08/04/2020 - 20:02
    +1

    Could you perhaps involve a 3rd-party service like 'MyBudget' to help work out a reasonable agreement?

    Even if you have to pay for the service, they could look at the tenants income, savings and situation and make a plan as a neutral third party. If the tenant really can only afford $XXX.00 per week, at least you'd have a professional budgeting service signing off on it. I know many people who couldn't budget to save their life, so I wouldn't trust the $150.00 figure at face value.

  • Hangryuman on 09/04/2020 - 09:39
    +1

    'Our tenants (a early 50s bf, gf and the gf's son) moved into my 3 bedrooms townhouse in last Dec and signed a year's contract for $470 per week. … the tenants broke up and the male tenant is the only one living there now. He's a painter and now has zero dollar income. A screenshot summary of his 3 bank accounts showed $0, $2 and -$10. He has applied for centrelink. Now he's asking for rent to be reduced from $470 to $150! Now we don't know how to go about this. Any advice?

    Edit: …The lease had only the bf's name on it. He had income of $1000 per week when applying for this property. As part of rent reduction prior to moving in, he already painted the whole place. Also, our current home that we are living in was painted 2 years ago. [by this guy?]

    Edit #2: Correction: Just had a look at tenant application, the male tenant that is on the lease was getting $2100 gross income per week.'

    is this confusing or what ? from what I can extrapolate, it looks like the early 50s bf is the only one there, was getting $2100pw gross, and now claims NINJA ! - No INcome, Job or Assets ?

    sounds like bludger territory - I know a bunch of painters who are all busy working now. A painter is typically a contractor who can get work or avoid work as they wish - so if this guy is claiming no work I'm guessing it's for the same reason the gf left him - he's an a$$hole who'd rather bludge off someone else if he can get away with it.

    Absent other information of course - please fill in the gaps if I'm missed something …

  • popsiee on 09/04/2020 - 10:41

    1 in 3 Australians have less than 5 k in the bank . 1 in 4 have less than 1k in the bank . OP is dealing with this one even though Tradies are going through a boom now .

  • funnysht on 09/04/2020 - 11:03
    +1

    Given no one has asked…

    So what plan are you going to choose OP any uupdates

  • Grish on 09/04/2020 - 23:33
    +1

    All my tenants work in hospitality and are stood down for the time being.

    They have fortunately managed to receive substantial gov assistance along with a balanced, per-case rental reduction.

    Meanwhile though, I just got my rates bill! No discounts for me, anywhere, ever.

    I worked over 70 hours this week, while my tenants played PlayStation (I literally saw them while I was mowing the lawns for them one night after work) - glad they're enjoying their break.

    Further, one tenant complained that the provided freezer isn't big enough for her panic buying and is demanding a 145L chest freezer to be provisioned into the laundry area, and threatening to halt rent payments until it's been installed.. Wtaf!?

    • Quantumcat on 12/04/2020 - 22:46

      Lol that's really trying his luck. He can buy his own.

  • Z-ster on 10/04/2020 - 09:11

    I have a tenant who requested a 50% rent reduction. He has provided my agent with documentation which includes one bank statement that is quite blurry. From this I can make out that he is transferring funds into another account, so it's clear that he has more that one bank account.

    What is interesting is this tenant requested a 6 month lease when he signed up in Jan because he was planning to purchase a property after having sold his own property. He told the agent this and even provided him with details of the settlement date of his sale.

    The address details of he previous property was provided in the form of Council rates and water bills and I can confirm he indeed sold his property in late 2019.

    It's extremely unlikely that he's spent the money from this sale, or the sale was forced due to unpaid debts as he mentioned his intention to purchase another property, hence the short term lease. Sure, his hours at work have been cut down and he will shortly be stood down until things start getting back to normal. his Wife is on maternity leave with 50% pay. He is also applying for benefits from the government.

    I would expect him to be dipping into the savings from the sale of his property to subsides rental payments. However there is no way of proving how many bank accounts he has and what his total assess are.

    This also brings up the question of tenants that have multiple bank accounts, and fixed term investments or shares. How does one ensure these assets are included as part of their assessment?

    • wordplay on 10/04/2020 - 11:32
      +1

      so landlords should have access to all tenants bank accounts, superannuation, share holdings and investment portfolios?
      maybe you should be able to see their relatives accounts to so they could get a loan from family during the pandemic.
      should they also get medical records so they can truly asses if people on disability payments are really elegible?

    • abc123z on 11/04/2020 - 09:20
      +1

      Just say no to him as you must wait for laws to be passed in your state. You are not forced to agree to anything at this stage.

      • Z-ster on 11/04/2020 - 15:04

        Yes, I came across a couple of articles that suggested to withhold for the moment as they believe a ruling/law is imminent.

    • TEER3X on 11/04/2020 - 11:57
      +1

      Someone above suggested 10% reduction or suspension of payments and then the whole lot owed in full.

      Looks like a standard form and saves you from having to negotiate further.

  • popsiee on 13/04/2020 - 19:01
    -2

    #RENTSTRIKE

    Bet the landlords in this thread will have some fear :)
    Thank the PM lol

  • cauilfield on 13/04/2020 - 19:58

    I would not agree to this reduction at all, as your insurance won't cover it.

    Also, there is nothing I found here

    https://www.consumer.vic.gov.au/resources-and-tools/advice-i…

    about not being to evict a tenant….

  • [Deactivated] on 15/04/2020 - 12:46

    I'm both a landlord and a also renting a commercial property. I feel for you on this.

    A 70 percent reduction seems a bit high.. Have you tried to negotiate for 50 percent reduction only? Based on the lower interest rates & the ability to postpone repayments (Im assuming you are possibly negative gearing this property), would that allow you to stay above water without going backwards to much financially?

    Reality is, ask yourself this.. Do you think you would be able to rent your property out even at 70 percent rent reduction during the next 5 or so months? If you believe you could, then at least push hard for 50 percent only reduction.

    Another thing to is, if he is a painter chances are alot of jobs may be cash money.. Therefore likely really hard to grasps what his real income is.

  • Anth0ny on 16/04/2020 - 07:06

    Hey OP,
    I wonder if you have any updates on this?
    So what action you going to take?

    Just to share with you - so last night I received an email from my property agent (NSW) that my tenant also wants 70% rent reduction (It seems like they all follow some sort of format; asking in unison for 70% - is there a template or something in here?)
    my tenant work as in a fitness industry; and i reckon that he probably lost his job due to the current situation.

    At the same time, last week my company is reducing hours so we all get 40% salary reduction to keep the company running.
    Also, currently im also still renting as well for my residence but my contract is ending is 2 months time and the agent just send me an email to extend the contract with same rental price for a year.

    Lucky for me, I do have emergency fund that I can access anytime and that will last me for couple years if the situation get worse (ie, i lost my job, i have to pay mortgage and rent).

    At this stage, im still evaluating the situation and probably i will contact my landlord insurance ask for their advice as well.
    I know the situation is tough, and Im willing to negotiate the rent reduction (but probably not by 70% lol)

    Any advice that you can share?

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