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  1. #11
    Join Date
    Sep 2004
    Location
    Hastings
    Posts
    15,431

    Default

    And rent 'reduction' needs to be in the form of a personal loan and carefully documented as such. With a guarantor or two, if possible. The repayment schedule could be, ahh, a bit elastic.

    As has been observed, no financial institutions, electricity suppliers, councils, IRD, food & medicine suppliers will be giving up anything, as things presently are.

    Maybe someone here qualified to do so could produce such a form, then have any tenants requesting a reduction take it to the local WINZ office, as part of the process that Artemis described here?

    That could produce an interesting result.
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  2. #12

    Default

    Landlords in business have been toughening-up because of unequally changes imposed and the tough-minded RTA reform coming, and surely a new dictated rent policy isn’t far away. Yes, rent reduction in individual cases will be an option to support renters who have been supportive in the past.

    We would process a rent reduction application in the same way as govt agents and banks do. Applicants sign a disclosure form with their income, WINZ response etc for making a reasonable decision. Any changes would be attached to the tenancy agreement.

  3. #13
    Join Date
    Mar 2018
    Posts
    110

    Default

    Yeah, that seems about the crux of it for me too Hawkeye.

    I'm just as equally amazed tho that tenants have even thought for it to be a consideration! Talk about lateral thinking. Good on him tho. It's got our thinking caps on now too!

  4. #14

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    I've already had several requests for rent reductions from some of my commercial tenants - their revenues have slumped. As I'm just about to start sending out annual invoices for the new financial year, I've made reductions to their invoices. The reductions in rent, up to $10,000, are for 6 months, and I said to each that it will be reviewed at the end of that time. It is only the rent that's going down, not rates, insurances etc, as I have no control over these. The larger tenants have not yet contacted me, and neither have any of the residential tenants.

    I feel that I need to support them, as they are small business owners who have worked hard in their businesses, and this coronavirus is not of their making, and the situation they find themselves in is not a result of poor business management. It's just something that has suddenly affected us all. If I tell them to leave, who will replace them?

    I'm hoping that the larger tenants will not ask for any rent reductions. I'm sure they have the resources to tough it out (some are national and multi-national companies, but you can never tell - look at Air New Zealand!).

    As for the residential tenants, I think it is inevitable that they will seek rent reductions in due course, knowing their occupations. I'll probably look at rent reductions too, if they ask. Although if they lose their jobs, the reductions may be quite sizeable.

    Hard times ahead for everyone, and I think we need to support our tenants while they are going through (hopefully, a temporary) difficult period.
    Last edited by learner; 22-03-2020 at 05:41 PM.

  5. #15
    Join Date
    Sep 2004
    Location
    Hastings
    Posts
    15,431

    Default All Together Now

    Quote Originally Posted by learner View Post
    Hard times ahead for everyone, and I think we need to support our tenants while they are going through (hopefully, a temporary) difficult period.
    The sentiment is ideal, but it needs to be across the board. I.e.

    Councils (Rates)
    Insurance companies (Premiums)
    Gummint / tax / IRD (Scrap min. wage increase; suspend provisional tax payts)
    Electricity suppliers (daily / fixed and per unit charges)
    ACC (levies)
    Banks (interest rates, repayt holidays, interest only, etc.)
    Food suppliers (???)
    Others?

    If everyone takes a hit on a pro rata basis, we'll get through it.
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  6. #16
    Join Date
    Sep 2004
    Location
    Hastings
    Posts
    15,431

    Default

    Here's an example of unequal burden-sharing, received in the minutes since I made that last post:
    As recommended by the Royal New Zealand College of General Practitioners, the Local Area Health Centre is immediately moving to protect the health of patients in waiting rooms by offering phone consultations. Normal charges will apply for phone consultations, prescriptions, etc.
    Can't have the quacks and apothecaries missing out, now, can we? I.e.

    As recommended . . . , the Local Area Health Centre is immediately moving to protect the income streams of those involved in the medical practice.
    Want a great looking concrete swimming pool in Hawke's Bay? Designer Pools will do the job for you!

  7. #17

    Default

    My feeling is the tenant should qualify for government assistance for rent, which artemis supplied information about.
    I think a small drop in rent is fine in the interim that tenant finds themselves during the waiting period for their application to be considered.

    I've dropped the rent around 5% for a few months, then it will return to normal but still reviewable depending on tenants circumstances, towards the end of the discount rent period.

  8. #18
    Join Date
    Apr 2005
    Posts
    2,898

    Default

    Yes, well, the flow of money around the local financial system is crucial.
    So, a smart response would be towards that primary objective.
    As it slows, everyone loses.

    Don't be fooled by incomplete math.

    The Government injected cash into the system in the form of lower interest rates.
    If you got some of that cash, in the form of lower interest repayments, then keep it liquid.
    Let the tenant keep it, to spend on food, hell, cakes and rum for all it matters.

    The lower down the pyramid you leave the cash, the more people it circulates amongst.
    That just the nature of pyramids, wider at the base.

    Financially, one might consider this a time of holding ground, rather than progress.
    A rent holiday might even be something worth considering, if you're in a really safe financial position.
    Last edited by McDuck; 23-03-2020 at 01:15 PM.

  9. #19
    Join Date
    Aug 2003
    Posts
    7,827

    Default

    Quote Originally Posted by Perry View Post
    The sentiment is ideal, but it needs to be across the board. I.e.

    Councils (Rates)
    Insurance companies (Premiums)
    Gummint / tax / IRD (Scrap min. wage increase; suspend provisional tax payts)
    Electricity suppliers (daily / fixed and per unit charges)
    ACC (levies)
    Banks (interest rates, repayt holidays, interest only, etc.)
    Food suppliers (???)
    Others?

    If everyone takes a hit on a pro rata basis, we'll get through it.
    This should be mandatory across the board and Government led, otherwise many will fall through the cracks while others get an unfair advantage.

    cheers,

    Donna
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  10. #20
    Join Date
    Sep 2004
    Location
    Hastings
    Posts
    15,431

    Default

    Quote Originally Posted by donna View Post
    This should be mandatory across the board and Government led, otherwise many will fall through the cracks while others get an unfair advantage.
    That's the sort-of thing that could lead to anarchy.

    I.e. When those at the bottom of the socio-economic 'heap' feel that those further up the heap are not experiencing a proportionate / commensurate level of 'pain.'

    That's the stuff of many revolutions past.

    That "equal pain" scenario is something that seems to be missing from all of Taxcindarella's pronouncements, thus far.
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