KUALA LUMPUR, 1 April 2020 – When the government announced that all loans except credit card, can be deferred for 6 months before being paid, we have received many messages from tenants asking homeowners for a rental relief which is to reduce or defer their rent.
After collecting enough customer opinions, SPEEDHOME has compiled a guide for the landlords to have a reference.
In response to the tenant’s requesting for their rent to be reduced, the tenant can first understand whether the industry in which the tenant is engaged is directly affected by the epidemic, such as tourism, catering, blue-collar workers or within a sales position, relying on commission-based income. These individuals are directly affected by the COVID-19 pandemic disaster.
If the salary reduction is not affected by the white-collar workers, the homeowners can consider continuing to ask for rent, because they will receive government subsidies next, and the salary will be issued normally, so there will be no direct financial impact.
Here is the guideline for you while dealing with tenants that requested for relief
1. Find out your tenant’s occupation, the most affected groups are:
a. Travel agent
b. Blue-collar / Fishermen
c. Small business owner
d. Restaurant / Food Operator
e. Sales personnel that relies on commission
2. Based on your property rental rate and exercise your discretion to grant relief temporarily with the following conditions:
a. The tenant has a good rental payment history (MOST IMPORTANT)
b. The tenant has a good justification that income is impacted during this period
c. Tenant’s job security is in risk, especially working in SME
This is based on what we have seen so far and this has served as a guideline for landlords who wish to see what’s the market reaction at this point.
This should not be taken as the absolute action that you have to take. Help if you can and make your judgment call on the magnitude of relief if your tenant’s occupation is most impacted by this COVID-19 pandemic.
Last but not least, if you have the financial capability, it is time for us to help others when they are in need. If you are a retiree who relies on rental income for your daily life, don’t feel bad that you are not able to help out because we are all affected by this and we are in it together.
Written by: SPEEDHOME Malaysia