The policy is designed to get marginalised people into decent housing. If you built a house x% below median price and got your rebate, would you not then try and find the best possible tenant? If the prospective tenant was "receiving Family Tax Benefit Part A and the maximum amount of Commonwealth rental assistance" would you seriously consider them in a tight rental market? If these properties would only attract tenants with a dubious ability to pay rent, would you even invest in them?
If the government really wants landlords to rent to tenants in financial distress, they need to give landlords some certainty that they will be paid and their property will be well looked after:
- Direct payment from Centrelink / PAYG for the duration of the lease (which the tenant cant stop or reverse) would be a good start.
- Payment of damage claimable through Centrelink / PAYG benefits
- Tribunals who support rental agreements rather than bleeding heart stories. Again costs which can be recovered through PAYG/ Centrelink.
Now that's some good suggestions! Especially as you mentioned for people on Centrelink payments. Why pay them the amount and then leave it to them to pay the rent - usually late. Just get the rent directly deposited to the landlord and then the tennants receives the remainder.