Hi All Financial gurus
I have an investment property at Gold Coast. Currently is rented to two overseas students for $540 pw (joint lease agreement), and the lease is managed by Meriton (their property management branch).
Just now, I received a letter from the property management agent, telling the tenants want to reduce the rent to $250 pw, citing the reason that they have lost their jobs due to the COVID-19 outbreak. The agent also mentioned the Government just issued a policy that no tenant can be evicted as a result of financial distress caused by COVID-19 for a maximum period of 6 months.
To be fair, they are good tenants and have never missed their rent, and we want to keep them if everything are kept the same. Whilst we have sympathy to people having hardship and want to help if we can, but we want to know if there are better ways to PROPERLY deal with such request. What are my options?
For example, how do we assess their financial situation (eg, they may get another job next week); and if we agreed to give some concession, what is the justified amount and condition, and how to put the terms into some bonding contract so we can protect ourselves.
Finally, if things turned bad and we cannot reach an agreement, am I risking having no rent payment for 6 months, and have no power to do anything?
Do you have any such experience, and/or what is your suggestion?
Thanks in advance for your kind advice.
[*** Update ***] I just realised the lease agreement is due to renew by next month. Does it mean if either party decided not to renew the lease, the "6 months no eviction rule" won't apply as there is no lease agreement?
Regards,
Michael
Check out the very recent threads on this topic while you wait
https://www.ozbargain.com.au/node/527745
https://www.ozbargain.com.au/node/528756
https://www.ozbargain.com.au/node/527490