COVID-19: Tenants & Landlords (Residential)

Armin65 on 17/04/2020 - 10:19
Last edited 21/04/2020 - 10:02

Good morning fellows

I'm renting an apartment and with current situation, my and my partner's working hours have been reduced :(
I tried to negotiate with property manager to reduce rent for 3 months, but they rejected and said you should pay in full; go and seek financial support from Centrelink, etc etc.

I am just curious why government is not stepping in to help out. I've got a few friends who have got their loan suspended (by just paying interest only) and they reduced their asking rent from their tenants accordingly. If that is the case for my landlord too, yet still forcing me to pay the rent in full, they are simply making a good profit while their tenants and other people are in financial challenges.

Let me do some calculations: The apartment I am living in worth around $400k. Even if 95% of it is on loan ($380k), below is the outcome from CBA calculator:

Interest Rate: 2.79%
Principal and Interest repayment: $1560
Interest only repayment: $1061
Original rent: $2100

So, as landlords are paying around ([$1560-$1061]/$1560=) 30% less, some leniency from landlord is expected.

My simple suggestion to Government is:
If a landlord ask their bank to put their investment loan on hold, they have to reduce their asking rent for their tenants accordingly.

This way, we are all sharing the pain together on this by helping each other; otherwise, it will end up with many broke people, and an unsafe/unhealthy community.

I am not working today, probably like many of you, so I thought it is good to share this with you. What's your opinion?

update1:

Thanks for those giving valuable insight on this thread…
To give everyone an update:
I finally found another nice place…well, smaller but much cheaper [apparently LL are desperate to find a tenant and I had enough room to negotiate for the rent ^-^] which is more than enough for us now. I gave my current property manager a notice that I'm vacating in 4 weeks. He called me straight away that LL is happy to offer 30% rent reduction for 3 months if you withdraw your notice.
And I said:

NAH MATE, TOO LATE … THANK YOU!!!

p.s. I also mentioned that due to current situation, I won't be comfortable to let other people in for inspection while I am still here :)))

Financial

Comments

      • [Deactivated] on 18/04/2020 - 13:07
        +1

        100%
        My number priority is house cost and food cost, if Centrelink can cover that I know I'll be okay when it comes time to lose a job, which is more than likely to happen at some point in time. This guarantees the minimum requirements to survive.

        Right now with the extra $550 that should cover everyone who loses their job easily, if it doesn't they should've prepared for the worst when they first got into debt and be aware that nothing lasts forever.

        • parsimonious one on 18/04/2020 - 13:19
          +6

          Ah Shroomer…

          Not a truer word can be said for landlords now squealing that life is so unfair

          “ they should've prepared for the worst when they first got into debt and be aware that nothing lasts forever”

          Amen to that

          • [Deactivated] on 18/04/2020 - 14:08

            @parsimonious one: Gotta take the risk to get the reward though, it may have paid off but I can't justify ever buying a house in my lifetime so I make do with what I can knowingly.

            • parsimonious one on 18/04/2020 - 14:50

              @[Deactivated]: Spot on shroomer.

              Investing in anything (including real estate) entails risk.

              No one forced anyone to leverage themselves to the eye balls to buy an investment property.

              Those who got in early enough are likely to be be sitting on some tidy capital gains.

              Those who got in later as the property bubble was became more stretched may be more precariously positioned.

              Now a global pandemic threatens to rattle the house of cards people start looking for someone to blame (and squeeze) to make up for previous poor choices

              • mun4 on 21/04/2020 - 10:21

                @parsimonious one: "No one forced anyone to leverage themselves to the eye balls to buy an investment property"

                If we were hit harder in 2008, things wouldn't be as bad as they're now. A way overdue reality check.

      • parsimonious one on 18/04/2020 - 13:17
        -1

        “I'd like to see the budget of these crying poor.”

        Now this we can agree on slick.

        I’d like to see the financials of the landlords claiming they can afford to reduce rents for tenant who have lost their jobs.

        • ozhunter on 18/04/2020 - 13:23
          +4

          Irrelevant if the LL can afford it or not.

          • parsimonious one on 18/04/2020 - 13:36

            @ozhunter: Huh?

            That’s precisely the argument that is being made here by little landlords whining about the govt’s policy … that they can’t afford it.

            Now if it’s an ideological argument that you and others don’t like the govt’s policy, well there is a remedy for that too, come next Election Day vote for the other guys

            • simonjb on 18/04/2020 - 17:40
              +8

              @parsimonious one: I'm not making that argument. The argument I'm making is pay your way in life YOURSELF or gtfo of the house and be a deplorable bludger elsewhere. Landlords aren't a charity for deplorables no matter how many renters are deplorable.

            • ozhunter on 18/04/2020 - 19:53
              +3

              @parsimonious one: That's one reason.

              Other is that the tenant is still using someone else's property so they should still be required to pay the agreed amount at the agreed time.

            • funnysht on 19/04/2020 - 10:57
              +2

              @parsimonious one: To put it simply, if you had a car loan, and then refused to pay the loan, would you expect to keep it>

            • mun4 on 21/04/2020 - 10:32

              @parsimonious one: "Election Day vote for the other guys"

              The problem we have is that ScoMo is pretty much on the left in terms of economic policies. For one, the Job Keeper handout is ridiculously lenient. If someone normally earns 750 a week, their boss would still keep them onboard even when there's no business. Yet if they were made fired, they'd get 550 a week. That's a $200 reward for just being at the back of the firing line…

      • jakeau on 18/04/2020 - 14:08
        +1

        100%. I vowed a long time ago not to buy into any hard luck stories without knowing all the facts and figures.

        • parsimonious one on 18/04/2020 - 15:04

          Agreed.

          When the dust all settles and the data is in, its almost guaranteed that those suffering the most hardship will be the newly unemployed and not disgruntled landlords

      • neonlight on 18/04/2020 - 20:05

        Unfortunately lots of gen y z zz all think internet Netflix mobile priority over everything else

      • funnysht on 19/04/2020 - 11:35
        +1

        Priorities go low when you realise someone else could be paying for it.

    • knk on 21/04/2020 - 10:20

      This - If you are now all of a sudden living outside of your means (because you lost your job and have no savings), start living within your new means which is that of the job seeker/keeper payment and whatever you're entitled to.

      Obviously easier said than done, but it's not the landlords fault someone can't afford $600 a week rent that they previously agreed to.

  • brendanm on 17/04/2020 - 10:33
    +19

    Lol I don't think anyone has an investment rate of 2.7%.

    You've also conveniently forgotten about strata fees, rates, maintenance, real estate fees etc etc.

    Why don't you apply for jobkeepers?

    • markathome on 18/04/2020 - 07:45

      Why don't you apply for jobkeepers?

      Most likely it's not applicable to him. There are a range of reasons people might not qualify for it unfortunately.

      • Poor Ass on 18/04/2020 - 07:48
        +2

        Plus he's still on a million dollars after his pay cut

    • bb_hunter on 18/04/2020 - 10:50
      +1

      Couldn't agree more. Let me know where I can get 2.75% for an investment loan, what about insurance.

      • Poor Ass on 18/04/2020 - 13:20

        Westpac 2.59%

    • Poor Ass on 18/04/2020 - 13:21

      Westpac 2.59%

  • wizzy on 17/04/2020 - 10:33
    +6

    The interest rate you are using in your calcuations may be too low. An interest only loan usually incurs a higher interest rate. Loans for investment properties also incur a higher interest rate.

    Also, it is not as simple as banks putting mortgage repayments on hold for 6 months. You still incur interest during that period which the bank then adds to the principal amount you owe at the end of the 6 months. In essence, you end up owing more money.

    Having said that, if you can prove financial hardship then your landlord should reduce your rent. Each state has different rules for how this should be done, so it might be worth your while to investigate the rules in your state.

    Good luck!

    • Gareth on 17/04/2020 - 11:19
      +12

      The best analogy I've seen for this is:

      You're in a taxi in a traffic jam. You're not getting to your destination, but the meter is still running.

      Anyone who puts their loan on hold needs to be aware; the meter is still running!

      • Choc83 on 18/04/2020 - 12:27
        +1

        Yep, you're not paying for distance, but you're still getting pinged for the time spent in the taxi.

        People who haven't had a home loan either don't understand this, or choose to be deliberately ignorant.

  • Xetrok on 17/04/2020 - 10:33
    +15

    Interest is still capitalised on the loans - it's not a total freeze.
    If you can't afford the rent - ask the agent to break the lease without penalty and find somewhere cheaper and affordable within your current limit/welfare.

    • Armin65 on 17/04/2020 - 10:42
      -4

      I was also thinking of downgrading to a 1-bedroom apartment. Even if they accept to end the lease, I don't have a good payslip to rent another property in the current situation. Movement will have extra cost too.

      • Chang1992 on 17/04/2020 - 23:07
        +3

        Movement will have extra cost too.

        Well if you move, don't you think its expect to have some moving cost ?

      • [Deactivated] on 18/04/2020 - 01:26
        +4

        They will accept to break your lease.Under the new laws, you will be able to apply to break the lease early if you are experiencing financial hardship. Fees for breaking a lease will not apply.

        I don't have a good payslip to rent another property.

        $5000 in savings should be fine. Even better considering you still have a job.

    • neonlight on 18/04/2020 - 20:10
      +3

      Unfortunately lots of renters are selfish. They don't want to move to cheaper place wants to stay and fight with the eviction support via Covid-19 reasons. Some of them are unable to get rental assistance which I can understand however if you can't afford and still occupy the property it's unethical not to do whatever it takes to pay up, but rather put out excuses.

      Example:

      "Oh yeah Coronavirus makes my job having less hours, government says landlord can't kick out tenants, I might as well stay as long as possible see what the landlord can do about it. It's not my fault it's a pandemic but I won't bother finding income or get assistance where possible, I'm not moving it neither. Make me landlord make me! "

  • PissLUR on 17/04/2020 - 10:33
    +1

    https://www.ozbargain.com.au/node/528756

    this is the how.

  • aspirepranesh on 17/04/2020 - 10:46
    +134

    Sorry mate, as a fellow renter in a similar situation I don't agree with you.

    • My work has made us work 3 days a week and use up 2 days of annual leave (40% reduction) and they have also taken away our vehicle allowance which is an other 15% off my monthly wages.

    • My wife has her teaching hours reduced from 25 hours a week to 15 hours (30-35% reduction)

    I don't think it is fair to ask for a rent reduction to my landlord! This was a contract I made with them year on year for the last 3+ years and I am no way relying on my landlord.

    I am someone who meticulously tracks how much we spend! Even if I spend on sometimes unwanted (Want vs Need) things.

    One good thing for us in this scenario, my wife and I have cut back on unnecessary expenses and can't eat out/go out to drink anymore and this month alone, we have spent over $1000 less! We have learnt how much we were spending sometimes on unnecessary things we could live without.

    they are simply making a good profit while their tenants

    How so? by asking for what you agreed to pay them?

    Considering you are someone like me who likes to travel based on 1, 2, 3, 4, I am sure you would have some decent savings for your future travel. Cut back on your expenses and pay your landlord what you agreed to…considering both of you still have jobs (unlike a lot of the unfortunate ones who have lost theirs)

    • sli on 17/04/2020 - 21:09
      +8

      Need a double or triple up vote button for this one…

    • neonlight on 17/04/2020 - 22:45
      +5

      Overseas for four months look at OP…

    • sarahlump on 18/04/2020 - 06:24
      -1

      You sound like a colaborator

      • aspirepranesh on 18/04/2020 - 06:31

        Haha.. Not certainly with OP. Maybe we have a few things in common, but I have a different stance on this. :)

    • whooah1979 on 18/04/2020 - 06:30
      +2

      Contracts may always be renegotiated.

      • aspirepranesh on 18/04/2020 - 06:33
        +4

        If OP lost his job, I understand he is in the state to do so. Unlike a lot of people, OP and his partner still have their jobs and still seem to make a decent amount of money, plus he himself admitted that he has enough in savings to not qualify for rent assistance

        • whooah1979 on 18/04/2020 - 06:53
          +3

          Yes, the current tenants have jobs and they have a small amount of disposable funds. That doesn’t mean that they can’t ask to renegotiate the terms.

          The worst thing that may happen is the other party saying no. The tenants may then start the process to find another place to live.

          • aspirepranesh on 18/04/2020 - 06:58
            +1

            @whooah1979: OP did that and the landlord said NO. And he is here complaining about the landlord.

            And you're right. He should start looking for a place, but he has excuses for that too.

            • whooah1979 on 18/04/2020 - 07:03
              +1

              @aspirepranesh: The cost of moving should be less than the cost of paying the current rent.

              They could move back home to save even more money.

              • aspirepranesh on 18/04/2020 - 07:04
                +1

                @whooah1979: There. You have made an other valid point as an option for OP. Move back home witu family instead of screwing the landlord.

                OP has conveniently ignored to respond to my comments including this and this which I have stated based on his profile and past posts.

    • SlickMick on 18/04/2020 - 12:30
      +1

      You should training for all these entitled brats expecting anyone else to suffer so long as they aren't inconvenienced.

    • neonlight on 18/04/2020 - 20:12
      +1

      Just how many people like you are out there. Props to you for understanding. Not every renter will think like you

    • funnysht on 19/04/2020 - 10:15
      +3

      Thanks, you sort of understand the situation.

      Rent reduction as a landlord, i would be happy to reduce by 30% IF the tenant was in genuinue hardship, but many tenants (like OP) use it as an excuse to continue their usual lifestyle whilst making their rent payments a very low priority. In reality where other times accommodation and food are a number 1 priority.

      Too bad all tenants can't be more like you

      • aspirepranesh on 19/04/2020 - 11:50
        +1

        The way I see it, there are a lot more unfortunate people, ie the ones who have lost their jobs(hopefully with some savings for food & bills) who really deserve assistance from the govt and maybe some assistance from their landlords (I understand it is not the landlords responsibility).

        OP just wants to sustain his lifestyle of spending & travelling while passing on the pain to his landlord.

        My projected savings are taking a hit at the moment(least of my concerns considering the state of the economy), but I am just thankful that my partner and I still make enough to pay the bills, spend less and not rely on any assistance from the govt.

  • TheBilly on 17/04/2020 - 10:51
    +7

    they are simply making a good profit while their tenants and other people are in financial challenges

    No they are not, the landlord still has to pay the repayments later with more interest because it gets capitalised.

    You are requesting them to forfeit a certain amount of rent for 3 months permanently.

    Why have you not explored centrelink or taking money from your super?

    As it stands it is first your problem and then the land lords problem second.

  • rambutann on 17/04/2020 - 10:58
    +23

    I mean, as a landlord I would give a rental decrease under the correct circumstances, but as other people have stated, your circumstances aren't bad.
    And you don't know what the landlords circumstances are.

    The only reason why I would give a rental decrease is because I have savings. Also, I still have a job. My partner recently lost her job, so I am supporting her.
    So if I didnt have savings, or I didnt have a job then I couldnt afford to give any discounts.

    Also, you haven't accounted for body corp and other fees. Body corp could be huge. Could be $2000-$8000 a year.
    Then theres water rates, council rates and potentially land tax.

    If you cannot afford to pay your rent with such a small change to your wage then you should re-assess your lifestyle.

    • neonlight on 17/04/2020 - 22:46
      +11

      Agree with you however some renters are trying to rip landlord off using Covid-19 as an excuse of not paying rent. It's ridiculous. If you can't afford then move.

  • JimmyF on 17/04/2020 - 11:14
    +4

    I am just curious why government is not stepping in to help out

    They are

    and said you should pay in full; go and seek financial support from Centrelink, etc etc.

    the covid19 payments are very high for the next 6 months to allow people to cover rent etc.

    So, as landlords are paying around ([$1560-$1061]/$1560=) 30% less, some leniency from landlord is expected.

    Owning a place is more than just the loan payment.

    They have insurances, agent fees and strata payments on apartments can be in the $5-25k a year on some stupid places!

    Plus the landlord has this as a investiment, to make money, not let people live rent free.

  • tsunamisurfer on 17/04/2020 - 11:16
    +14

    yet still forcing me to pay the rent in full, they are simply making a good profit while their tenants and other people are in financial challenges.

    The landlord isn't forcing anything except the terms and conditions you agreed to at the beginning of the tenancy.

    You should have savings planned for such life events.
    If not, contact your Superannuation company and draw out as much as you can to pay the rent in full.
    If not, find other roles like food delivery, or sell possessions.

    Don't make the landlord subsidise your life.

    • nfr on 17/04/2020 - 11:52
      +2

      You should have savings planned for such life events.

      What do you mean savings? That's bad for economy. Governments want us to spend, if no money just borrow to spend!

    • Armin65 on 17/04/2020 - 12:47

      The landlord isn't forcing anything except the terms and conditions you agreed to at the beginning of the tenancy
      Didn't people who have lost their job in different sectors agree on their salary when they were hired?!

      • tsunamisurfer on 17/04/2020 - 12:50
        +1

        There is no work, are you so entitled that you still expect companies to keep paying you in full?

      • ozhunter on 17/04/2020 - 12:51

        Yea and they agreed on reduced one…

        Your landlord didn't agree on reducing your rent.

      • aspirepranesh on 17/04/2020 - 12:54
        +4

        Didn't people who have lost their job in different sectors agree on their salary when they were hired?!

        Hence the Govt is stepping in with Job Seeker/Job Keeper for those in need!

        You on the other hand still have a job and so does your partner and as you stated, you HAVE savings which makes you ineligible for benefits!

        Hypothetically, lets say on your normal wages between you and your partner, you are being paid $8000. You were paying $2100 rent and $4000 on other expenses and saving $1900.

        If you lost 30% of wages, you are now being paid $5600 of which $2100 is rent and you still have $3500 to spend (which is still a lot in these circumstances). This is all before you have to rely on any of your existing savings!

        You want your landlord to give you a discount so you can retain as much money in your pocket as possible! Grow up mate.

    • markathome on 18/04/2020 - 07:54
      +2

      You should have savings planned for such life events.

      People keep saying this but then Government repeatedly rolls out assistance that excludes savers. People need to sit down and tell savers (like me) the truth: "you idiot, you've saved too much money you should have lived more recklessly, travelled more, bought more business class flights, etc."

  • dasher86 on 17/04/2020 - 11:19
    +12

    The apartment I am living in worth around $400k
    Original rent: $2100

    Geez where can you get a rental return on an apartment like this in Melbourne? sign me up.

    Also where can i get an investment loan for 2.79%?

  • [Deactivated] on 17/04/2020 - 11:30
    +16

    If interest rates are that low and rental is that high, and landlords are unreasonable…

    Maybe buy something?

    we are all sharing the pain together…

    And how are you sharing the landlord's pain? You seem to want to "share" in one direction.

  • Stimps on 17/04/2020 - 11:33
    +1

    The problem is you tried to negotiate. Just tell them what you will now be paying, no negotiation required. Better yet, vacate immediately and move back home with Madge and Bill.

  • BruceLee on 17/04/2020 - 11:33
    +56

    What a ridiculous, entitled argument.

    So if your landlord had managed to pay off their mortgage, your rent should be reduced to zero?

    You have significant cash savings. In fact, so much in savings that you're not entitled to Centrelink benefits.

    Yet you expect your landlord to dip into their own savings while you hoard yours and avoid a contractual obligation you signed up to?

    • TheBilly on 17/04/2020 - 13:55
      +13

      The sad thing is though there are so many people that think like the OP. I'm just glad most people on this thread disagree. The sense of entitlement is scary, imagine if that was the majority of society.

      • Choc83 on 18/04/2020 - 12:37

        You should take a look at twitter. Search for 'kill all landlords'

        It's frightening.

        • TheBilly on 18/04/2020 - 17:46

          I just did. Idiots. No kill all bankers?

      • aboogee on 18/04/2020 - 18:00

        well… there are enough out there to make me feel upset
        we've had many similar topics on this on OzB since the government announced the moratorium

      • funnysht on 19/04/2020 - 10:18
        -1

        EXACTLY why the gov should just do a specific "rent allowance" where it goes directly to the landlord. A lot of tenants just keep the job seeker payment and then say they dont have the funds to pay the rent.

      • sangohan on 20/04/2020 - 00:21

        imagine if that was the majority of society.

        there's a very large amount of people who do think this way, if reddit and twitter is to be believed.

    • neonlight on 18/04/2020 - 20:17
      +1

      It's called selfish and taking advantage of the pandemic and rip someone else off…

      Basically it's the concept of what you lose is what I would gain.

      Example:

      "Since eviction cannot happen I will take full advantage out of it. By law you can't kick me out their I don't give a damn about you landlord. It's time to me to save while you get the kick in the butt heh"

  • goodforthestrangers on 17/04/2020 - 11:40

    Assuming from other comments that you're in Victoria, if you are experiencing financial hardship or otherwise having trouble paying your rent, you should check the resources available at https://www.tenantsvic.org.au/advice/coronavirus-covid-19/

  • Mrbean007 on 17/04/2020 - 11:42
    +2

    Lol feel sorry for landlords if this becomes nation wide.

    https://youtu.be/Etiv5GbHH88

    • kml22 on 18/04/2020 - 10:29
      +2

      QLD gov is f up if this proposal goes through.

      • Mrbean007 on 18/04/2020 - 11:52

        Im sure it will go thru and the rest of the states will follow as there will be a lot of homeless more for the government to foot the bill instead they will pass it onto the landlords unfortunately and there will be lot of people scamming the system.

  • Ocker on 17/04/2020 - 11:42
    +3

    Some people are just downright selfish, thinking of purely their of situation and not not giving a damn about others.

  • wannagrababargain on 17/04/2020 - 12:11
    +12

    Don't try to concern yourself with trying to calculate "what the landlord is paying."

    Concentrate on your own hardship and try to negotiate on that basis. The fact is, the bottom just fell out of the rental market and landlords need to realise that. At the end of the day you can't get blood from a stone. It is short sighted of them to expect full payment of rent up front when you literally don't have the money. The short term view risks having zero rent paid and no tenant rather than taking a long term view and accepting say 6 months of half-rent but still having a tenant at the end of it. However if you do have the money you should keep paying.. but you should let them know you have less income so you are at risk of being unable to pay in x months which could be the basis of some relief put in place now or later.

    The support packages out there are trying to strike a balance where everyone takes a bit of haircut and the pain is spread. The support packages are not there to subsidise landlords at full rent nor is it there for cash flush tenants to get discounted rents, they are there conditionally upon the basis of a good-faith negotiation between parties. For example, the Victorian land tax exemption is conditional on the reduction of rent.

    So the checks and balances are already there in place, you need to concentrante on your own finances (not the Landlords) and go in armed with the full complement of information and calculate exactly how much you can afford to pay.

  • payton on 17/04/2020 - 12:25
    +10

    This way, we are all sharing the pain together on this by helping each other; otherwise, it will end up with many broke people, and an unsafe/unhealthy community.

    Shit people say when they want to dodge commitments and financial responsibilities.
    I think the WHO is hiring, and they want you for their slogan manager.

  • ozhunter on 17/04/2020 - 12:30
    +6

    Just curious, what would you do if you lost your job prior to covid19?

      • aspirepranesh on 17/04/2020 - 13:42
        +7

        Looking for all the excuses under the sun to get a break on the rent I see!

  • Yummy on 17/04/2020 - 12:49
    +14

    OP, its time to quit those lobsters and start eating instant noodles for the next 6 months. You gonna save $$$ a lot. No need to thank me.

  • tomleonhart on 17/04/2020 - 12:54
    +12

    Move. Plenty of cheaper places around.

    • capslock on 17/04/2020 - 13:57

      This. I've noticed an abundance of better quality and cheaper rentals currently available. When your current landlord is earning zero income after you have moved out then he can spend the next few months regretting not negotiating with you. Revenge will be sweet.

    • Armin65 on 17/04/2020 - 17:15
      -3

      That's on the plan mate ;)
      I started negotiating with them so their place doesn't stay vacant for few week after I move out.

      • tomleonhart on 17/04/2020 - 18:41
        +5

        Great. That’s what we did. We asked for a rent deduction and landlord didn’t budge so we found another place down the road for roughly 20% cheaper.

        I didn’t pay a deposit but sent our exchanges to the current property manager and voila, 15% deduction for our current place. Win - win.

      • ozhunter on 17/04/2020 - 19:19
        +7

        Yep, asking for rent reduction should be the first step. If they refuse, then you can choose to move out.

        Government allowing tenants to end fixed-term tenancy without fees is more than enough.

      • funnysht on 18/04/2020 - 11:09

        Great. But that's not your problem.

  • daewoo on 17/04/2020 - 14:14

    I tried to negotiate with property manager to reduce rent for 3 months

    What's your negotiation? As a renter and landlord I can see both sides.

    I did achieve a 10% rent reduction by requesting they meet the market rates or I will be moving out to my rental property (which sits empty, a 100% reduction). I was willing to move, the question is, are you? I think you're stretching it hoping for a 30% reduction…

    You've signed a contract with exit clauses etc. Do the math and see if it's worth moving elsewhere, create win-wins for the landlord etc.

  • Ughhh on 17/04/2020 - 16:29
    +20

    Looks like you don't want to use your travel budget/balance to pay for rent. Better to use someone elses money than your own hey.

  • Trojan on 17/04/2020 - 21:04

    That would be like saying a renter could take a loan to cover rent for the next 6 months and therefore their rental cost is zero for the next 6 months.
    Deferring a loan or taking a new loan to improve cash flow is not the same as getting a free ride.

  • Ctn on 17/04/2020 - 21:12
    +3

    Wow the sheer utter stupidity…

  • Poor Ass on 17/04/2020 - 21:28
    +4

    Maybe you should try to apply to live in a housing commission. I hear they welcome people like you.

  • gstfree on 17/04/2020 - 22:11
    +3

    There will be landlords withdraw from rental property market. Price of housing is likely to be more affordable soon.

    I have a rental property and I rented to a family with 3 or 4 kids. The rent is very low with no increase since 3 years ago. I have been getting cash rate return. I would want to sell the property long time ago.

    Very much looking forwards to dispose the investment asap.

    • trapper on 18/04/2020 - 11:31

      Very much looking forwards to dispose the investment asap.

      For a loss?

      • gstfree on 18/04/2020 - 18:49

        Loss if compare to highest point. There are better options with the proceeds.

  • kool on 17/04/2020 - 22:17
    +1

    OP, move out to a cheaper accommodation if you can't afford.

    My tenant stopped paying rent, didn't bother to contact agent. I am willing to negotiate. But there are a bunch of tenants trying to default. It is also in Victoria. And I am a tenant too, paying rent…

  • CheapskateQueen on 17/04/2020 - 22:24
    +1

    I'm basically in a fight with a good friend over this situation.

    She hasn't had a pay cut yet but lost her housemate because they shipped back home to the UK. She's been fighting with the landlord for a rent reduction because "when she signed the lease, she was only meant to pay half because she'd always have a housemate". Her rent is 55% of her net weekly pay, so she still has plenty to survive. It's not great, but everyone has been hit. Her sense of entitlement has really made me angry. I was helping her write emails but really got over it and called her out on it.

    You're not entitled to rent reduction if you can still afford to pay your rent. End of story. It's not for the landlord to take a hit, so you can save money during this time.

    If you literally can't afford to pay, it's a different story altogether.

    Ugh.

    • Trying2SaveABuck on 17/04/2020 - 23:36
      +5

      One day your friend will be in the opposition position and she will show ZERO tolerance. I know LOADs of ppl that used to rent and cry poor complain about LL etc etc when they finished uni got set up became LL themselves they became the WORST LL

      It is funny how the cycle works

    • parsimonious one on 18/04/2020 - 10:33

      Haha. Very good cheapskate queen.

      You seemingly don’t see the irony at all in your position.

      Your friend has apparently been impacted by policy/ circumstance change (ie housemate “shipped back” to Uk) and now might have trouble meeting commitments. In your view that warrants no sympathy.

      Landlord impacted by policy / circumstance change and now may have trouble meeting commitments = fair enough - Squeal to all that will listen.

      Oh and btw rental stress is considered to be when >30% of your income goes to rent. Thus your friends situation of having 55% of income going to rent far exceeds that definition

      • CheapskateQueen on 18/04/2020 - 12:07

        who said she was having trouble with her financial commitments? she's not, that's the point. and yes, I know for a fact.

        and I'm aware that 30% is so called rental distress but there's a big difference if 30% is of $700 net per week or $1000 or $1500. she can pay her full rent, eat well, pay her bills, and probably still have change left over.

        and don't get me started on her response when I said to drop the advertised rent of the second room from $350 to $250 to get someone in.

    • jakeau on 18/04/2020 - 14:11
      -3

      Wow. Confirmed idiot.

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