“Landlords vs Tenants.” Has this become the Unspoken Virus as the current pandemic escalates and more folks lose their jobs, fall into financial distress and struggle to pay rent?
Well, to answer this question, let’s talk about the myths and misinformation out there.
Because we want to set the record straight in order to help BOTH landlords and tenants navigate what is a difficult time for all of us.
Because, YES, there’s a whole lot of folks out there who are doing it really tough right now… and we by no means want to understate this. We understand the severity of the situation. And we understand that there is NO “landlord vs. tenant” argument — because, realistically, there are no winners in this.
Equally, we also know that the majority of investors only have ONE investment property and only the minority out there are super cash-flushed. Most of us are everyday Australians simply trying to self-fund…
Put another way… investors ie. landlords also feeling the hit with job losses and reduced income like everyone else. And we want do whatever we can to assist the community, but the fact is most of us can’t afford to bear the cost of having reduced or no rental income while still needing to cover mortgage repayments, tax commitments and repairs and maintenance. Most of us aren’t in a position to shoulder the responsibility if rent stops coming in because, as we explained in last week’s episode the “6–month holiday” on your home loan, while helpful to those under duress, is merely a temporary freeze, which you will then have to make up for further down the track.
So, in this episode, we want to share some ideas of what we think both the Federal AND State and Territory Governments need to do in order to step up and help all of us who are affected here.
Again, WE’RE ALL IN THIS TOGETHER… and it’s wise we take a look at both sides of the equation… for Landlords AND Tenants.
So, let’s get into the nitty gritty, debunk the myths and offer some useful solutions that could be beneficial for everyone.
Free Resources Mentioned
- PICA – Property Investors Council of Australia
- PICA – Members-only Facebook Group (under “Groups” section)
- CoreLogic Home Value Index – April 2020 (Ben’s Did You Know)
- BMT Tax Depreciation – To Claim TPC Discount Code (note: we DON’T get paid for this)
- PICA Fact Sheet on Residential Tenancy management during Covid-19 Pandemic (note: members-only. Sign up for $5)
- Episode 031 (Part 1) | Story of an Investor and Lessons Learnt along the Way – Chat with Carolyn Wright
- Episode 031 (Part 2) | Checklist to Getting A Great Property Manager – Chat with Carolyn Wright
What we Talk About in Today’s Episode:
- Why are Landlords and Tenants are in this together?
- Our ideas to help them BOTH
- Our Top Advice for Property Investors About Rent Reductions
- The Types of Landlords
- What’s NEW and What’s NOT New with tenancy hardship agreements?
- Misinformation about Landlords
- What monetary relief is available for tenants right now?
- “Job Keeper” vs. “Job Seeker” Payments
- What happens to an investor’s Landlord Protection Policy if you drop your rent?
- How long will your Landlord Protection Policy cover you for?
- What do you need to show to claim tenancy hardship?
- Rental relief package for landlords…
- What is Centrepay, and who is eligible for it?
- Ideas around tax depreciation that could help during the COVID-19 crisis
- How are property managers helping tenants during financial hardship?
- What are the ramifications for landlords?
- What should you do if you don’t have a tax depreciation schedule?
- Claiming tax refund early
- What would we like to see at a Federal Level?
- What would we like to see at a state and territory level?
- What is PICA doing to help Landlords during the time of COVID-19?
- Is there an option to switching to interest only?
- What’s stopping people from switching p and I to IO?
- Are we going to see volatility come through the property market?
- Realistically, will there be a DROP in median property prices?
And of course… Additional Helpful Resources on COVID-19
National Update: Click here
- Australian Capital Territory – Click here
- New South Wales – Click here
- Northern Territory – Click here
- Queensland – Click here
- South Australia – Click here
- Tasmania – Click here
- Victoria – Click here
- Western Australia – Click here
And One Final Word…
If you’re worried about your finances or if you have no clarity on your cash flow position, we strongly recommend you to organise your finances now. It’s more important than ever to have a clear view, down to the exact cent, on how much you’re spending each month and how much surplus you’ve got. If you don’t know it, then log in to your Money SMARTS Platform here and update the numbers.
Don’t have an account yet? Create your free access below and we’ll also send you an e-copy of the instruction manual which is also our best-seller book, Make Money Simple Again. Just fill in the form below and we’ll email it to you right away.