Again, remove "emotion" Cisco, you need to have some empathy but at the end of the day it's just a business transaction. If you need to tell yourself that you are providing a "valuable community service" in order to sell yourself the desire to make financial gain then so be it. I personally see it for what it is .................... a business transaction in order for you to make profit.
Put it this way Cisco, if I had employed someone to manage a business that I owned; and they terminated a business agreement or contract to supply a good or service (instead of renegotiating the contract) that then cut my cash flows in a falling market (instead of just reducing the cash flows) based on their emotional response; I'd sack them for mis-managing my business and costing me revenue.
In this falling market, instead of eviction, everyone should look to renegotiate a new short term lease based on a revised rate to meet the current market; and also seek a personal guarantee for any outstanding debt owed from the previous agreement. Obviously, if the client/customer is looking like they will never have the means to pay then you need to terminate and hope that someone/anyone else fills the gap. Surely consult your solicitor for the best legal way forwards.
It is an "analytical" decision on whether to engage in the business contract where the income does not justify the expences, time and degredation of the assett value or to suffer short term losses and preserve and improve the assett value.
I think for most residential landlords it has for some time now been more about preserving assett value than achieving return.
If one can do both he is ahead of the game.
Select to expand quotepetermac33 said..
I heard on the grapevine that tenants will NOT have to pay the landlord for the previous 6 months - cant be surely?
That truly was on the table. I was fine with most of the rules, except that the tenants did not have to show any proof of anything.
There was a lot of noise.
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Here are the new rules for Queensland: (from our RE agents)
- The six-month moratorium on evictions will only apply to tenancies where the tenant's income has been reduced as result of COVID-19 and the tenant is at risk of eviction.
- Tenants can still be evicted for doing the wrong thing and on other grounds.
- We are asking property owners and tenants to work together where a tenant Is experiencing COVID-19 related financial challenges to negotiate a new temporary and sensible rent amount.
- Guidelines are being developed to support reaching an agreement including duration and whether repayments are required. While we expect most tenants and property owners to come to an agreement, where this is not possible, we will provide a compulsory, free, fair and independent conciliation service to resolve issues.
- Tenants will need to demonstrate genuine financial distress from COVID- 19 that meets an established standard.
- Tenants will need to have had a 25 percent reduction in income or show that rent exceeds 30 per cent of the tenant's income. This can be substantiated by providing the same financial information they do at the start of a tenancy
- Enabling virtual inspections to protect tenants and property managers from getting COVID-19 and ensuring essential access for repairs and maintenance continues
- Tenants will be able to have break lease fees capped only where there has been a 75%, loss of income and they have less than $5,000 in cash.
- Tenancies that expire during this crisis will only roll over to September 30 2020 at the l a.t est and they .have been impacted by COVID-19
- The six-month moratorium on evictions will only apply to tenancies where the tenant's income h as been reduced as result of COVID-19 and the tenant is at risk of eviction Tenants can still be evicted for doing the wrong thing and on other grounds.In cases where the owner and tenant are both experiencing financial distress, we have established a $20 million-dollar rental grant fund to complement existing Centrelink support.
(Sorry about formatting, that's how it came to me from our agency)
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By the way my tenants asked for a reduction. Just because. I said no. They signed for another 6 months.
