First Covid-19 rent reduction request received

[Keys]

Have you let them know that rent is still due and payable?

[sparxNZ]

Indeed. The day after the first payment was missed they were notified of the arrears and the period which it was for.

[Bluecoat]

Have a tenant who gave notice before the lockdown. I have advised them they can stay until lockdown is over .
They came back with
New rent reduced by $110 and NEW TA signed
That tenancy is fixed for the next 12 months at this rate

1st weeks rent to be waived due to cancelling the new properties PM's agreement.
Is this opportunistic ?
This amounts to 5K decrease in revenue p.a - which represents about 8 weeks of rent

[Perry]

Looks opportunistic, to me. Same rent should apply in the [new] TA. But a reduced rent for the lockdown period, with the TA-specified amount to resume on 1 May 2020.

Artemis has posted information of what tenants should do.

Also, see this post.

But Jennifer Sykes, at MBIE, said that an option that tenants and landlords may consider is reducing rent temporarily. The Residential Tenancies Act allows parties to a tenancy to agree that the tenant can pay a lower rent temporarily. Once that time is up, the rent is reinstated at its earlier amount. As the reinstatement of rent is not a rent increase for the purposes of the Act, it would not be caught by the rent increase freeze in the legislation just brought in.

[Sanya]

Have a tenant who gave notice before the lockdown. I have advised them they can stay until lockdown is over .
They came back with
New rent reduced by $110 and NEW TA signed
That tenancy is fixed for the next 12 months at this rate

1st weeks rent to be waived due to cancelling the new properties PM's agreement.
Is this opportunistic ?
This amounts to 5K decrease in revenue p.a - which represents about 8 weeks of rent

I had a similar situation of a tenant giving notice before lock down and then cancelling the notice because they were unable to move.

They were stressed because they'd signed a new tenancy agreement for a property in another city and the PM for that property insisted they pay full rent for that property even though they had no ability to move in.

As the existing tenancy agreement is still valid we did not draw up a new TA. Instead we agreed for the period they continued to stay or the period of the official Gov lock down (which ever was the soonest) they would pay a reduced rent.

[PC]

Have a tenant who gave notice before the lockdown. I have advised them they can stay until lockdown is over .
They came back with
New rent reduced by $110 and NEW TA signed
That tenancy is fixed for the next 12 months at this rate

1st weeks rent to be waived due to cancelling the new properties PM's agreement.
Is this opportunistic ?
This amounts to 5K decrease in revenue p.a - which represents about 8 weeks of rent

Try and be nice to some people and they respond by trying to screw you. Probably Labor voters!
Perhaps go back with $50pw reduction, existing TA applies and periodic tenancy. You can negotiate too.

[Bluecoat]

Yes i cancelled the $20 increase that was due BEFORE the lockdown.

I have reduced by $110 pw and is now periodic. Lets hope they give me 3 weeks notice again before moving.

Gave them really good reference despite weekly pavements a bit sporadic at times - something that was easily managed by emails and they rectified quickly.

However just a week after lockdown they were 3 weeks overdue.

so I sent an email saying I will consider your options if you pay all outstanding rent then we will discuss.

They paid - Phew lets hope it continues.

sometimes I rather have these kind if tenants then completely the opposite and then get headaches so time will tell if taking a huge rent cut rent would have been a better option.

Joys of being a Landlord.

Which leads me to why my company doesn't qualify for a wage subsidy? Could have easily applied here.

[Keys]

Gave them really good reference despite weekly pavements a bit sporadic at times - something that was easily managed by emails and they rectified quickly.

Never give a written reference, other than a copy of their rental summary, before the end of the tenancy.

[Bluecoat]

Never give a written reference, other than a copy of their rental summary, before the end of the tenancy.

gave it verbally to new Agency who signed them up with new property.

Love to be a fly in the wall what advise they are giving to my tenants.

[Perry]

You could, ahhh, update your references to the aforesaid agency.

[Perry]

Shame Upon You W'gton Airport

Spare a thought for the many back-packers and tourists who really do not have a home to go to in NZ for the 4 weeks mandated.

After a last minute bus-ride dash from Auckland to Hawke's Bay, we're now 'sheltering' one young fellow in an empty cabin on the proviso that the 14-day self-isolation requirement is adhered to. After that, we can socialise.

The young fellow I was lock-down sheltering here arrived in Frankfurt around 0700, this (Sun) morning. On Friday, (having fed him for the time he was here), my daughter did the 9 hour round trip drive to W'gton airport, to get him on his way.

Negative kudos for the airport. They kicked everyone out of the terminal at 3.00pm and his flight was not until 0500, the next morning. WTH? He's a back packer, so carried a tent and pitched it on the grass, nearby. But what about the others waiting to fly home?

Bad, bad look for the Mingy city.

My daughter had copies of the German's travel docs for the six police stops on the way home. She had the German himself to vouch for the validity of the travel reason on the one police stop going to W'gton.

Only one other car on the interchange at the bottom of the Ngaraunga Gorge, as they drove through.

Strange times, indeed.

[Bluecoat]

Only one other car on the interchange at the bottom of the Ngaraunga Gorge, as they drove through.

Went for a walk round the block, saw at last a dozen cars, a painter was loading his van at 630 Pm , possibly a paint job overnight.
I reckon no body knows how it will play out as you and I may be obeying the lockdown rules but there are idiots who are always pushing it.
again, we should have locked down the borders from day 1 and throw anyone who broke the rule in the cell.

[Sanya]

One in five tenancies could fall into arrears


Perhaps stealing thunder from NZPIF, Mr. David Faulkner of Real-iQ, a business "born out of a desire to raise the bar of Property Management throughout New Zealand" has published an interesting blog on what they think will happen with rents and why.

The opinion draws upon a fortnightly survey of 32 property management companies.

What do you think?

Personally I think the concern around "Airbnb set to flood the market" is over stated. Yes, there will be more rental supply in key tourist hot spots but what about other areas?

Looking at Auckland for example, as an avid follower of TradeMe rental listings I note that today [15 April 2020] there are 3,489 rental listings for the greater Auckland area (all districts sort). On the same date exactly year ago there was 4,356 rental listings - thus representing around a 20% YoY decline.

https://realiq.nz/articles/rents-what-we-think-will-happen-and-why/

[mrsaneperson]

Went for a walk round the block, saw at last a dozen cars, a painter was loading his van at 630 Pm , possibly a paint job overnight.
I reckon no body knows how it will play out as you and I may be obeying the lockdown rules but there are idiots who are always pushing it.
again, we should have locked down the borders from day 1 and throw anyone who broke the rule in the cell.

Yes many of the "contraveners" are just people that don't buy the fictional rub of it all. This is a virus that affects seriously only those with a compromised immune system and/or the elderly. Its insane locking down the whole nation which is only delaying the inevitable of a virus that wont just magically go away.
Compared to the Spanish Flu of 1918 that was a disease that did kill the fit and healthy at a mortality rate of around 10pc, yet with covid everyone dying from it was already seriously sick from another health condition.

This covid19 is similar in most respects to the seasonal flu which kills around 900 every year in NZ.

It is just a bogeyman created out of thin air for the most part backed by media propaganda and hyped death rate statistics, if you are reasonably healthy and fit you have nothing to worry about .

The fallout from the lockdown is yet to be felt as most are sitting comfortably at home enjoying their government wage subsidy.

[Learning]

Yes many of the "contraveners" are just people that don't buy the fictional rub of it all. This is a virus that affects seriously only those with a compromised immune system and/or the elderly. Its insane locking down the whole nation which is only delaying the inevitable of a virus that wont just magically go away.
Compared to the Spanish Flu of 1918 that was a disease that did kill the fit and healthy at a mortality rate of around 10pc, yet with covid everyone dying from it was already seriously sick from another health condition.

This covid19 is similar in most respects to the seasonal flu which kills around 900 every year in NZ.

It is just a bogeyman created out of thin air for the most part backed by media propaganda and hyped death rate statistics, if you are reasonably healthy and fit you have nothing to worry about .

Most of this has been debunked. Yes age and underlying health issues drastically increase the risk but like all viruses every persons infection is unique. There are hundreds of cases of teens to 40's, fit and healthy, dying.

Lord Farqaad's words "Some of you will die but that's a risk I'm willing to take".