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

      • fusion17 on 05/04/2020 - 15:33
        +6

        Agreed, if possible I would also ask for a summary of his expenses considering he will get $1380 (once the Centrelink kicks in).
        Why does he feel this isn't enough to pay significantly more of the rent than requested.

        Based on people I know it's surprising how much they discuss struggles of living paycheck to paycheck while sipping their $4 coffees everyday or asking if I want to come out for $15 lunches frequently. Buying big purchases like tvs without waiting for sales or a new car loan.

    • sunmoon108 on 05/04/2020 - 18:48
      -2

      His fortnightly pay would be 1350 and would up paying 800 just for the rent..where will be go for his other expenses? Speak like a human..a reasonable rent for him or any one would be 300 a week …period

      • jimbobaus on 05/04/2020 - 19:07
        +13

        Nope. Times are tough but that doesn’t excuse him from his commitment.
        $580 a fortnight can be easily managed.
        People been living on half for years. He is lucky he gets the extra $550.
        $300 is not reasonable in any way. $400 plus a month free is enough support

      • callum9999 on 05/04/2020 - 21:10
        +5

        If you think it's tough living on $550 a fortnight for expenses, you're going to have the shock of a lifetime when you see how the poor live in this country.

        I don't consider myself poor and I don't spend much more than that including my rent!

    • harthagan on 06/04/2020 - 06:14
      +3

      Where is the $1380 number coming from.

      Starting from April 27 it will be:

      $565 job seeker payment
      $550 supplement (for 6 months)

      For a total of $1115. Then you can also apply for rent assistance which the maximum for a single privately renting tennant is just under $140 per fortnight.

      That would bring the total to $1255 fortnightly

      • Narull on 06/04/2020 - 10:21

        Keep wondering this myself, I think people are reading how much rent assistance you get wrong, maybe they think it's weekly but it's def not as high as some comments above think it is.

  • Cat nut on 05/04/2020 - 11:06
    +19

    Does he really need a 3 bedroom place to himself? Could he get some housemates, that you approve and sign a new lease?

    • Hardlyworkin on 05/04/2020 - 11:24
      +4

      Seems like good advice. If we lose our jobs we would look for a flatmate for our spare room. Maybe not the easiest time to find someone though worth a shot.

    • fruxo on 05/04/2020 - 15:24
      +2

      He is obviously already planning on having people move in and paying him directly so he can live for free. There is no reason for him to stay in a 3 bedroom by himself, makes no sense.

      Ignoring that, it seems like some rent negotiation is probably needed if he genuinely can't pay. Or agree to break lease free.

      Edit: I assume he doesn't have kids etc

    • knk on 05/04/2020 - 20:30
      +3

      Exactly, these people want to live beyond their means. There's nothing wrong with living with housemates if that suits your budget.

    • sarahlump on 08/04/2020 - 05:35

      The problem is he's locked into a lease that he has no way out of. He can't afford to pay it out, and can't afford to pay the rent.

      That being said he is protected by law. Ultimately he might not be doing anything wrong.

  • [Deactivated] on 05/04/2020 - 11:10
    +4

    He will get $1380 Fortnight from centrelink and if he have kids as well….dont bother working

  • Trying2SaveABuck on 05/04/2020 - 11:19
    +5

    Ask him if you could mutually stop the lease and if you can get him out find someone else

  • websterp on 05/04/2020 - 11:19
    +2

    If he is single now and cannot afford to pay the full rent suggest him to get some housemates and/or you can agree to sub-let the remaining bedrooms so he can make up for the remainder of the rent.

    This wont happen overnight but if you are in a position to take the hit with reduced rent for a month or so that gives plenty of time for both of you to agree and bring in few more tenants.

    Since he clearly is not in a position to pay the full rent I believe you have the upper hand here. As Scomo said (this is one rare occasion I'd agree with him) just sit with your client and find a solution agreeable to both of you. These really are challenging times!

  • Pumpkin_rrr on 05/04/2020 - 11:29
    +4

    Did the Gf sign the Lease, and forms part of the terms of you accepting the rent?
    If she did, and now runaway, she is liable for break lease. And you can follow the normal procedure.
    The rent reduction comes after this.

    • baybeejuice on 05/04/2020 - 11:35

      No, only his name was on the lease

      • ankor on 05/04/2020 - 12:59

        Poor bugger was used by sketchy peeps to get into a place from the sounds of things. Why even grant him the lease in the first place??

      • Pumpkin_rrr on 05/04/2020 - 16:09

        Oh dear…. Your PM must be happy with his income alone….

        Our Painter is still busy.. has jobs lined up all the way to after Easter.
        Two of them are vacant Units commencing after Easter. Some people can be lucky, while some other people would just have it tough….

      • AlanHB on 05/04/2020 - 21:45
        +1

        Wait, your real estate approved lease for a guy who couldn't afford to pay rent? I do appreciate that his income was cut off recently, but he must have really been scraping by if his accounts are now zero, after one or two lessened paychecks.

        I also am unsure how much coronavirus has affected painters.

  • Hardlyworkin on 05/04/2020 - 11:31
    +4

    Were they bank statements showing spending for the last month or so or just the amounts? If I was going to agree to a rent reduction and take the hit I would want to know that the tenant hadn't just been p!ssing money up the wall for the last month or 2.

    Some good suggestions above regarding flat mates or getting him to paint a friend's home. Maybe you know someone with property that could afford to pay for some painting that would go towards rent.

    • baybeejuice on 05/04/2020 - 11:36

      It was just a summary of the total amount. Will ask the agent to ask him for full bank statements

      • wendellX on 06/04/2020 - 10:08

        Don't bother. He could have any number of accounts with any number of banks. Just because he chooses to show you accounts with 0 balance doesn't prove anything.

  • kevsta on 05/04/2020 - 11:34
    +18

    Painter is in his 50s, assuming he has been working for 30 years and has no savings ? I just find this hard to believe given the amount of money painters charge for paint jobs. Eg. 2br apartment painted inside, 2.5k - 2 days of work to complete.

    • funnysht on 05/04/2020 - 11:35
      +1

      He should have a bit of superannuation at least?

      • wordplay on 05/04/2020 - 11:40
        +4

        I hope that is a joke.

        • funnysht on 05/04/2020 - 11:43
          +15

          No. why else has the government approved early withdrawal of supernannuation?

          • whooah1979 on 05/04/2020 - 11:55
            +1

            @funnysht: It is to early to start dipping into super.

            • Mike88 on 05/04/2020 - 14:35
              +26

              @whooah1979: But it's not to early to be dipping into the landlords bank account? Easy when it's not your money.

          • wordplay on 05/04/2020 - 14:39
            +1

            @funnysht: Put it in writing and get the realestate agent to put it in writing that you want the tenant to use superannuation to pay the rent and you will be in huge trouble.

          • sarahlump on 05/04/2020 - 17:05
            -2

            @funnysht: You arent a licensed financial advisor, please don't offer financial advice in this instance. The penalty is $126,000

            • funnysht on 05/04/2020 - 17:19
              +4

              @sarahlump: Yet you're happy to dish out financial advice all over these forums:

              quote "Then perhaps business owners should be limited to the same pay as their lowest paid employees. Perhaps business's surplus income should go to the employees who's labour actually made the money. But no, oh, instead it goes to rich people to become needlessly richer. Please don't ever equate the game rich people play to the struggle poor people go through to survive. to us it's not a game."

              • sarahlump on 08/04/2020 - 05:37

                @funnysht: You mean, the logical, moral, and ethical way to handle a business?

                And what I said is what was issued by the govt.

                Capitalism is wrong. this whole thread is an example of it.

      • modsec802 on 05/04/2020 - 13:23
        +3

        That comment can land you in jail

  • funnysht on 05/04/2020 - 11:40
    -1

    If i was the landlord this is what i would do

    2) Ask for last 4months bank statements

    3) Ask him that he can break the lease without any cost

    4) Reduce the rent noting superannuation (fair enough if he doesnt want to withdraw given he is 50 and prob his super has taken a hit) but given c link benefits would be $700, he should be expected to pay $300 a week (upon receiving the benefits).

    • popsiee on 05/04/2020 - 11:53
      +12

      Slimy Real Estate Agents have been warned not to force people to withdraw super for rent by the government if you don't keep up with the news .

      • cynicalmike on 05/04/2020 - 12:11
        -4

        what is the superannuation for then? retirement funds for old men so they can pay for a wife in thailand?

        • Gronk on 05/04/2020 - 16:39
          +3

          Username checks out.

          Damn, late to the party on that one..

    • jimbobaus on 05/04/2020 - 12:23
      +10

      Yeah agents telling tenants to use super can result in Jail Time for the agent

      • cynicalmike on 05/04/2020 - 12:33
        -2

        really? wow must have missed that announcement. you can see how ridiculous this all is now. people that have worked so hard all their lives to have an investment property and people that live day to day spending everything they have on luxury good and services (alcohol, high yield investment vehicles, eneloops) effectively get free rent for 6 months with no requirement to pay it back afterwards (just do a runner the courts will be so clogged it will be impossible to pursue later).

        thanks scum-mo!

        • jimbobaus on 05/04/2020 - 12:36
          +8

          As a landlord i do not agree with this statement
          Firstly they have to pay rent, in fact the framework that is being worked out now and will be released in the coming days is being set up to ensure rents are paid.
          People on Jobseeker will most likely have their rents auto deducted from their payments under the framework so this will assist landlords
          But until we see the rules and guidelines i wouldn't make the call on "free rent for 6 months"

          Oh and username checks out :P

        • Baysew on 05/04/2020 - 13:04
          +14

          ASIC warns real estate agents against advising tenants to access superannuation to pay rent

          Real estate agents who advise tenants to access their super could face a maximum of five years imprisonment, and/or a fine of up to $126,000. Agencies could face fines of up to $1.26 million.

          • cynicalmike on 05/04/2020 - 13:58
            +1

            @Baysew: can i advise them to sell their car? motorbike? jewellery? eneloops? toilet paper?

            when times are tough you do whatever you need to do to pay the rent and feed your family. i'm just concerned that sleazy tenants that spend their money on booze and smokes, going out to restaurants, constantly calling for ubereats are going to claim they they're doing it tough and refuse to make any lifestyle changes to even TRY to pay their rent? i mean, why would they when the government has given them a free pass?

            what about landlords that rely on this income to live as well?

            i suppose it is premature to jump to conclusions until it has been written into law, but based on the vague descriptions in TV appearances and the fact that the liberal party has never been kind to people that have worked hard their whole lives to create a better future for themselves and their children i won't be surprised if it is more or less what i am cynically describing.

            • BadHorse on 05/04/2020 - 17:13
              +6

              @cynicalmike:

              can i advise them to sell their car? motorbike? jewellery? eneloops? toilet paper?

              Well i'm sure that your bank can just tell you to sell the investment property if the income you banked on has disappeared because the tenant has lost their job and source of income.

              • cynicalmike on 05/04/2020 - 17:17

                @BadHorse: i didn't say the income is being used for mortgage repayments. maybe it's being used to put food on the table and all the other normal things people do with money.

        • Yotta00 on 05/04/2020 - 15:28
          +3

          Take your losses and sell up if you don't like it. It is the free market at work negotiate trade. You have to be special to "invest" into a house bubble anyway, floated by foreigners and tax subsidiaries.

          • cynicalmike on 05/04/2020 - 15:43
            +1

            @Yotta00: take your losses and move in with your parents if you don't like it.

            • Emerald Owl on 07/04/2020 - 04:58

              @cynicalmike: You were probably spoon fed by your parents who are the reason you own your house. Some of us have been on our own renting since we were 16 and it’s very hard to save to buy when you’re renting.

              • cynicalmike on 07/04/2020 - 13:52
                +1

                @Emerald Owl: there's so much wrong with your accusation that it's not even worth addressing.

            • TilacVIP on 07/04/2020 - 08:27

              @cynicalmike: And that's a bad option why??

        • Repi on 05/04/2020 - 19:55
          +2

          Looks like you missed a few announcements, but anyway speculating on investments and hard work are not necessarily connected. Bet most tenants feel like they are working hard.

    • sarahlump on 08/04/2020 - 05:38

      im sorry what, and live on $100 a fortnight? What happens when he gets an electricity bill? You're suggesting a 50 yr old should starve for a fortnight? Are you detached from reality? How's the air up there with the other rich people?

      • Chang1992 on 08/04/2020 - 08:27
        +1

        If thats the financial position hes facing, he has to find a way out. Life is tough.

      • funnysht on 08/04/2020 - 10:11

        680 a week- 300 a week= 380 a week.

        Also if $50 a week is what you have then make it work
        https://www.bestrecipes.com.au/budget/articles/live-50-weekl…

        ..Or could just move to a 1bdr apartment like every other honest tenant who's single? But hey i'm out of touch of reality.

        • sarahlump on 08/04/2020 - 18:27

          Where are you seeing these 1br apartments? Because I can find you 400,000 students who would love to live in them. Also, you've obviously never in your life lived off of $100 in a fortnight.
          Oh, i got a phone bill, I got an electricity bill, oh I got an internet bill, or I got a gas bill, oh I got a gocard bill, oh I need these meds to survive bill.

          $100 gone. Where is the food?

          • sarahlump on 08/04/2020 - 18:28

            @sarahlump: You can't claim a govt payment without a home, a phone, and an internet connection at 50.

            • sarahlump on 08/04/2020 - 18:30

              @sarahlump: https://www.realestate.com.au/rent/with-studio-in-brisbane+-…

              Find me a 1br appartment for under $200 a week. (jobseeker payment is $600 a fortnight)

                • sarahlump on 09/04/2020 - 21:32

                  @funnysht: there's like 12 people living in that house. you still haven't found a 1 be apartment, keep looking, you implied that they are everywhere.

                  Also, OP's tenant is 50yrs old. this is……student housing, they require you to be enrolled in a university course…try again. Or better yet just become in touch with reality. Capitalism has forced billions into poverty and squalor.

                  • funnysht on 09/04/2020 - 21:47

                    @sarahlump: Live within your means.

                    • sarahlump on 11/04/2020 - 00:50
                      -1

                      @funnysht: Are you completely detatched from reality??? you just before this suggested that tenant live within $-200 and somehow pull food out of that. It's a capitalist society, where are the billions lifted out of poverty? if you don't have money, you don't eat. your suggestion for the tenant was unrealistic because you don't understand what poor people go through. And somehow you've been trying to justify your suggestion??? you're just plain wrong. Admitting it to yourself is freeing.

                      Op tenant needs a rent reduction, moving house isn't feasible for him, this is his situation. It's reality. You can't justify money grabbing by evicting an old man in a pandemic, there is just no justification that you can give.

                      • kiitos on 11/04/2020 - 09:13

                        @sarahlump: Despite the good points, I want to downvote this because you referred to the early 50s tenant as "an old man". :-)

                      • funnysht on 11/04/2020 - 09:57

                        @sarahlump: Why isn't moving house feasible for him?

                        So he wants to live in a 3bdr place by himself?

                        He cant move out? So how did he move in then?

                        He's old? He was working full time as a painter and earning 100k a year up until a month ago?

                        I hardly call earning 100k a year and about to receive a centerlinke payment of $500 a week, living in poverty. It's called more living above your means.

  • newak on 05/04/2020 - 11:45
    +1

    By himself he certainly doesn't need three bedrooms. If possible he could get a friend or two to share the apartment and try and get the rent closer to $400 for now.

  • crashloaded on 05/04/2020 - 11:46

    Try get a new tenant, come to a rental agreement or sell.

    It ain't that hard.

  • Trying2SaveABuck on 05/04/2020 - 11:50
    +4

    I would ask him if he would be willing to be out of his lease keep his bond if you can find a better tenant

  • tsunamisurfer on 05/04/2020 - 11:53
    -4

    I would do the following:
    - Demand he withdraws from his Super.
    - Demand he claims Centrelink and pay that way.
    - Find people who want painting done and farm him out.

    Before expecting the LL to subsidise his life, he should exhaust all other options first.

    • oscargamer on 05/04/2020 - 12:03
      +4

      Just wow.

      Hope you never find yourself in a tight spot.

      • tsunamisurfer on 05/04/2020 - 12:27
        +14

        Shouldn't one do what one can to resolve an issue before expecting others to hand you the solution?

        What has happened to personal responsibility?

        • oscargamer on 05/04/2020 - 12:51
          +6

          What personal responsibility can the painter take when the global pandemic takes away his income.

          He appears to be trying to pay some rent, rather than none. That's a good start wouldn't you think?

          Your comments "Demand this and demand that". Are you Donald Trump?

          • sheamas88 on 05/04/2020 - 13:26
            +8

            @oscargamer: By the sounds of it, he didn't have a single months worth of living expenses saved. Considering he's probably be working for 30 years and doesn't have a rainy day fund shows he has either had a LOT of bad luck in his life, or he has not spent his money responsibly.

            • oscargamer on 05/04/2020 - 13:27
              +4

              @sheamas88: Or he lives from pay cheque to pay cheque and his ex took whatever little was left.

              Not a lot of compassion these days….The new world order unfortunately.

              • sheamas88 on 05/04/2020 - 13:38
                +12

                @oscargamer: We're talking thousands of dollars being gifted by the landlord to the tenant here. That's a lot of "compassion" for a stranger to give another, non-voluntary I might add.

                If you're so compassionate, why don't you pay the difference in rent for the tenant here?

                • oscargamer on 05/04/2020 - 13:51
                  +4

                  @sheamas88: "If you're so compassionate, why don't you pay the difference in rent for the tenant here?"

                  …because I don't have any spare money myself…

                  I am currently paying money for my kids sporting / music / social activities, while they are cancelled. Why? We're in a relatively small town and these are run by small family businesses and if I and others cancelled our subscriptions, they would fold. Not just losing my kids sporting/music things, but their family would lose an income, impacting them considerably, reducing their quality of life and that of their kids and their spending in our local stores. Ripple effect etc…

                  I am also assisting our 87 year old neighbour, who needs some help with 'stuff'.

                  I am doing the little that I can afford to do.

                  That's compassion IMO.

                  • sheamas88 on 05/04/2020 - 14:17
                    +14

                    @oscargamer: So it's OK for you not to be able to afford it, but you expect OP to be able to?

                    • wordplay on 05/04/2020 - 14:44
                      -3

                      @sheamas88: He can sell the investment property if he can't afford it.

                      • dizzle on 05/04/2020 - 15:26
                        +8

                        @wordplay: That works both ways - the tenant can move or get other people in, if he can't afford it.

                        If he sells the property, he's likely to lose a lot of money right now (because others are in the same position, with less money to put towards these investments) and the tenant's likely to be out anyway (who's going to buy a rental house with a tenant that is not paying market rate? or with the risk that tenants won't pay and you can't evict them)

                        So really, the landlord does not have much choice while the tenant is there.

                        I understand compassion, but the landlord is likely affected by this in other ways too. They could be on reduced pay/out of a job.

                        As someone renting, haven't been working for 4 weeks and losing my job, while also renting out a house (in another state). I see both sides of this, but still feel I have to cover my obligations. So i'm relying on that rental income to supplement my rent and try to pay my mortgage. If I allowed any reduction in rent, I'd be screwing myself.

                        • wordplay on 05/04/2020 - 15:35

                          @dizzle: but by other peoples reasoning in this thread you should then use your superanuattion to pay rent to your landlord, do you think you will end up doing that?

                          realestate agents in town here are saying houses are likely to sell more quickly as they have lots of people who are now not holidaying overseas and looking to put that money into realestate, so now is the time to buy before more people enter the market and they say rates are extreemly low so can get an ever larger home loan than could previously allowing for bigger property

                          • dizzle on 05/04/2020 - 15:54
                            +8

                            @wordplay: But I wasn't answering their statements, I was answering yours.

                            My point is that you can't just have one-sided compassion because you don't know the circumstances. You can't blindly say that all landlords can afford to take a hit, just like you can't say all renters can afford to pay full price.

                            However the government have neutered the landlords, and any "negotiation" is now one-sided. If the landlord says no to the reduction, they can't evict the tenant for not paying. There fore they lose money without any option to do otherwise. They can either accept the lower rent, or risk there being no income at all. I don't think compassion has anything to do with that.

                            Personally I would understand that If I couldn't pay the rent that I would be evicted. I wouldn't sell my house so that I could afford the rent (it would probably take months in this climate anyway). I would (and I have to, since I'm in the position of losing my job) have to find other ways to survive. Whether I have to find someone else to live with me, move back to my home state and break the lease, get extra work as a Woolworths casual, center-link, whatever.

                            If I had no other choice than to take out of my Super, I may have to do that. That would be a last resort and I would have to figure out if I would lose more doing that, or selling the house. But I don't expect my landlords to lose money because of my choices.

                            Real estate agents are saying that so that they can still earn commissions. Right now many are not getting the income. Many businesses and industries are not getting the customers so they are not making money. I don't think there is a single industry that won't see reduced profits in the next 12 months and people will wan to save their money in case it gets worse. My other point still stands: Would you purchase a house that's being rented right now, with the knowledge that a renter can withhold payment without risk of eviction?

                            Those that need to sell quickly will lose money. Those that can afford to have the house on the market for a better price are not the ones that need to sell.

                            • wordplay on 05/04/2020 - 16:15

                              @dizzle: thanks for answering my statement. I didn't say anything about compassion, I just said they could sell the property

                              I think the government has also neutered tenants by forcing businesses to close.

                              Many landlords have said no to reductions, and realestate agent here said they were phoning all tenants to inform them that there would be no reductions in rent due to Pandemic (but would not have any increases for leases ending in the next 3 months if they signed for 2 years).

                              How much money are these landlords likely to lose if they sell houses, house prices here have gone up quite substantially in the last 5-10 years, and even in the last 2.

                              • dizzle on 05/04/2020 - 16:50
                                +8

                                @wordplay: If it's not about compassion why should landlords take the hit?

                                With other businesses, if you stop paying, you stop using their services. You're example there would not work in any other business, so why for landlords?
                                It's like saying I still need petrol, but I can only afford to pay 30% of the value, so the petrol station has to pay for it. If they can't afford it they should sell the petrol station. They can afford it because they've made money over the last 5-10 years. That's a strange argument to me.

                                Tenants are struggling, but they are not being neutered. Tenants (and businesses) have other options if their businesses are closed. Casual work for supermarkets has gone up, Ubereats jobs, there are ways to make money. The government has increased payments to help those that can't.
                                Businesses that have lost their customers try to find other customers: restaurants increased takeaway business, pubs open as grocery stores, retail have increased online presence.

                                Landlords are not allowed to find other customers so they have no choice.

                                • wordplay on 05/04/2020 - 17:04

                                  @dizzle: No im not saying they can afford to lose money (no one can afford to lose money, its the most important thing in the world), but you were saying that landlords would lose money if they sold their house.
                                  In my area I don't think there would be a house that would have gone backwards in value in the last 5 years, most have gone up substantially, so I'm not sure how selling the house will result in a loss and it will solve the issue of the landlord having renters who are not able to pay the current rent price.

                                  Yes, I have seen my dentist working in the supermarket, as the dentist has shut except for emergency surgery and pain relief, but i'm not sure that coles has enough jobs for everyone in town who has lost their job.

                                  with the petrol, can't you just dip into your super if you need petrol? the gov has neutered the fuel industry with the price regulation and anti-collusion/price fixing laws so I don't see why they should need to subsidise a landlords fuel just because they own an investment property and the tenant is unable to be evicted due to law changes.

                                  • dizzle on 06/04/2020 - 12:48
                                    +2

                                    @wordplay: I think you're reading that wrong, in this analogy, the landlord is the petrol station. What you previously said is the same as saying that because the driver (tenant) can't afford petrol, the petrol station (landlord) should subsidise it, or if they can't afford to, they should sell the petrol station.

                                    It's not about subsidising the landord, it's about paying what you are supposed to pay, or stop using the service.

                                    As for the rise in house prices - that's what investments are. My mother has lost around 100k in Super in the last month. Sure it's higher than when she put it in, but if she withdraws it now, that's a lot of money to have lost. If she waits another couple of years, withdrawing minimal amounts, it will probably be back where it was (fingers crossed). The house prices are the same, but to sell now because someone else isn't paying their rent (when they should be) would be stupid.

                      • sir_bazz on 05/04/2020 - 18:01
                        +2

                        @wordplay: @wordplay

                        Yes he could sell the investment property, but that doesn't help the landlord OR the tenant.

                    • oscargamer on 05/04/2020 - 15:13
                      +2

                      @sheamas88: What?

                      I am taking issue with tsunamisurfer's comments and yours.

                      If I had a tenant in the position as described by the OP, I would not take tsunamisurfer's position or attitude.

                      I also wouldn't take your tone of 'well that painter bloke clearly didn't take care of his money during his life' (without you knowing jack about him) or your 'well you can pay the shortfall, if you have compassion'. If you think compassion is only about money, then that's very sad.

                      • sheamas88 on 06/04/2020 - 07:55
                        +2

                        @oscargamer:

                        If you think compassion is only about money, then that's very sad.

                        This whole situation is about money, and whether the OP can, or should lose thousands in rent. You brought up "compassion", so you are the one drawing the "money = compassion" argument. My whole point is that you can't draw that conclusion because you yourself can't or won't give that amount of money either, even though you believe yourself to be compassionate. This is not a compassion issue if OP can't afford it. And even if he can, it's questionable why he should take such a financial hit for a complete stranger.

                        I also wouldn't take your tone of 'well that painter bloke clearly didn't take care of his money during his life' (without you knowing jack about him)

                        You also know jack about him, so why do you get to assume the guy's financial state is not of his own doing? I acknowledged he may have had bad luck to end up here. Your side is speculation just like mine, so you can't make the "you don't know" argument here.

          • tsunamisurfer on 05/04/2020 - 20:40
            +3

            @oscargamer: What personal responsibility?

            What about personal savings?
            What about drawing from your Super as the law allows?
            What about not relying on someone else?

            Losing your job for whatever reason happens to everyone in their lifetime. You should have money aside for such life events.

            Hasn't the tenant done the same in this case in terms of demand? He is writing it in an environment where he knows he can't be evicted

        • sarahlump on 11/04/2020 - 00:51

          "one" has done what "one" can. Sometimes there is just nothing you can do, so "one" has gone to the landlord and said "here's the solution".

    • Blue Cat on 05/04/2020 - 12:22
      +9

      Demand he withdraws from his Super.

      And get fined thousands for providing financial advice without being a financial advisor.
      Smooth plan!

      • tsunamisurfer on 05/04/2020 - 12:25
        +1

        Frame it as I know someone in the same situation as you and he was able to maintain good standing with his landlord by withdrawing from his Superannuation. But first speak with your financial advisor.

        • wordplay on 05/04/2020 - 14:45

          oh so just lie and deceive.

    • jimbobaus on 05/04/2020 - 12:24
      +2

      Agent tells tenant to withdraw super
      Agent ends up in Jail (literally.. they can go to Jail for suggesting this)

      • tsunamisurfer on 05/04/2020 - 12:26
        -2

        As above

        • jimbobaus on 05/04/2020 - 12:29
          +2

          No matter how creative the agent is, if they in anyway suggest or hint that super is the solution then they are in some serious trouble.
          there is no "grey area" in regards to the rules

          • tsunamisurfer on 05/04/2020 - 12:33
            -4

            @jimbobaus: I have worked in Super for over 10 years. I know what constitutes financial advice and information that is general by nature.

            • jimbobaus on 05/04/2020 - 12:38
              +1

              @tsunamisurfer: Thats good for you
              The fact remains they have been crystal clear…. no suggestions, no hints, no direct advice

              If the agent in ANY WAY leads a tenant to use super for rent they face fines or possible Jail time.

              They cant even bring Super up at all.
              If the tenant finds the info thats different

              I am a landlord of multiple properties and can tell you the agents have been told very clearly.. there is no grey area, zero tolerance

      • TheBilly on 05/04/2020 - 12:28

        Agent gives tennant a government website that outlines the different avenues to resolving financial hardship.

      • Cheeper on 05/04/2020 - 12:32

        Painter works cash in hand (assumed as a lot do) has zero bank balance, good chance he has zero super?

      • trapper on 06/04/2020 - 12:54

        Might be hard to prove though. He said, she said - if it even got reported to the police at all.

  • tomlikesbeetroot on 05/04/2020 - 12:01

    If the GF and son are also on the lease aren't they the ones who should be responsible for the remaining portion of the rent until new tenants are found?
    If you take the nature of the relationship out of the equation, it's a lease signed by 3 housemates, 2 of them have broken their lease by moving out, the remaining tenant is keeping up his obligations to pay his share of the rent. Shouldn't it be the responsibility of the 2 housemates who moved out to pay their share of rent until replacement tenants can be found?

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