Crash Landing

Hi Barefoot,

My wife and I live in regional Australia, earning good dough. Our problem is our rental in Brisbane. Our tenants (no problem up to this point) have been stood down due to COVID. He is a pilot and the main income-earner for his family of six. For the past three months we have discounted their rent by 50%. They have just come back requesting a further discount period because he is still on stand-down. Shouldn’t they have their finances sorted so that my wife and I are not subsidising their lifestyle? Or do I show a level of compassion and continue with discounted rent on the basis that some rent is better than zero?

Gary

Hi Gary,

You seem like a good bloke. Many landlords haven’t been as generous as you, judging by a report out this week from Better Renting which found that fewer than 10% of tenants who asked for rental relief received a satisfactory discount. Yet, if I were you, I wouldn’t simply approve their request for a further discount period.

Instead I’d write to them explaining that the fairest thing you can do is give their family time to make some tough financial decisions. Nominate a certain date you’re willing to give them to make that decision, and, importantly, spell out the amount that this will cost your family. At that date they need to come to you with an acceptable offer, or move out.

Scott