Financial Hardship - information for tenants COVID-19
All Cubbi COVID-19 articles are in progress and will continue to update. We are actively improving Cubbi as you read this article. In the meantime if you have any questions please do not hesitate to contact us.
COVID-19 is a very unwelcome surprise and has caused many people a lot of stress.
This article is designed to help you (as a tenant) help the landlord help you.
These questions will help you demonstrate hardship due to COVID-19. As a rough guide you may need to provide evidence you have lost over 25% of your income (after tax) to avoid being evicted for non payment of rent and be eligible for government supports.
Most landlords in Australia own 1 investment property (approx. 70%) and is also negatively geared which means the rent you pay does not cover their costs (eg the mortgage) so it may be impossible for them to reduce the rent without additional supports from the government including (Rent Relief Grants for tenants and Tax relief for owners) that are only available if you can demonstrate your ability to pay rent has been effected by COVID-19.
Therefore you should start by informing the landlord of the following information:
1. How have you been financially impacted by COVID-19
You may like to explain:
- What your income was (at the beginning of the tenancy, e.g. what was on the application?)
- What your income is now
- Why this has happened
You don't need to go too personal with your financial situation, rather give an overview.
2. What Financial support have you explored
- What was the result of that
Financial support may be the the new Job Keeper and other relevant grants like Rent Relief (state by state).
3. Tell your landlord what need
- You need to be clear and reasonable what you would like (eg Delay some of your payments by going on a Payment Plan). Use this guide to choose the best option.