Introduce new law... tenants to pay council rates

[donkey]

I lived in the U.k for many years and as a tenant had to pay the council tax. It was logical that I was liable for this tax as I was living in the property.

In the nanny state of australia I rent out my I.P and have the huge quarterly rates bill which seems to be increasing by around 8% each yr.

Does anyone else agree that we should have the same system as the Uk?Whoever lives in the house/ flat has to pay the tax. Or at least have a 50% owner 50% tenant payment structure.

If your a landlord I would like to hear your thoughts. If your a tenant, I already know what your opinion would be on this thread... don't bother.

thanks

 

[Ausprop]

yes user pay makes sense.

 

[devank]

I would start with the water bill first

I guess it would be too much hassle for councils to keep track of tenants. It is lot easier to find the house owner.

 

[westminster]

In the UK how does the council handle it, if the tenant doesn't pay?

With the owner pay system here the Council has the right to sell the property if it comes to the end of a non paying problem.

 

[geoffw]

It's not actually the tenants payin rates per se- it's a council tax- http://en.m.wikipedia.org/wiki/Council_Tax

This replaced the extremely unpopular and unfair poll tax which was a flat amount to be paid by everybody regardless of income.

 

[donkey]

It's not actually the tenants payin rates per se- it's a council tax- http://en.m.wikipedia.org/wiki/Council_Tax

This replaced the extremely unpopular and unfair poll tax which was a flat amount to be paid by everybody regardless of income.

but rates in oz are just a council tax like in the uk.

There is the issue in the uk when the tenants dont pay. I assume in the end the system works in the uk due to the fact that the population so much larger compared to oz.

I think it would work if ones property is managed by a real estate agent. Handle it the same way that water rates are paid. I think a 50% system would work.

How do we get this legislation implemented? Who do I write to? Big tony A himself?

 

[GreenMedallion]

If your a landlord I would like to hear your thoughts. If your a tenant, I already know what your opinion would be on this thread... don't bother.

If you're not interested in hearing views from both sides, then there really is no point starting a discussion on the topic. If only one side comments, then it becomes a 'love in' basically.

I agree with the poster above with regards to water bills first. Baby steps...

 

[CHAOS]

I don't mind paying the council rates - I own the property.

Water rates - I think these should be in the same category as gas and electricity. For gas and electricity tenants have to pay supply charge, special meter reading fees and then usage.
I would like to see the tenant pay for the access water and wastewater fees ($280 a quarter) and reading fees not just usage.

 

[The Fence]

Rates consist of user type charges such as garbage, water, sewerage, with only water being able to be passed on to tenants.

Time for a shake up.

 

[kathryn d]

I think the rent should include whatever is agreed upon between the landlord and tenant.

Until then, the rent will need to be high to include, whatever is not legally permitted.

 

[wylie]

I think the rent should include whatever is agreed upon between the landlord and tenant.

Until then, the rent will need to be high to include, whatever is not legally permitted.

It doesn't work like that though. You can have two identical houses next door to each other. One decides to add the $20 per week for the water infrastructure and "delivery to the tap" costs whilst the other just sucks it up (like we have to do now).

Which house will sit vacant?

 

[wylie]

How do we get this legislation implemented? Who do I write to? Big tony A himself?

What about we start a petition on change.org?

Of course, unlike many other petitions, this one would generate lots of landlord bashing, but either people sign the petition, or they don't. There is a box where they can support their view but I think they have to actually sign the petition in order for their support reason (or challenge) to be seen by those who may be influenced by the comments, so that would mean anyone against it would not sign? (Just guessing - I've signed some I agree with and ignore the ones I don't agree with.)

Anyone (I guess) could start such a petition but I believe it would be better coming from a landlord with some legal or professional involvement.

 

[jim1964]

I would start with the water bill first
.

We do this in S.A.Although the bill still gets sent in the landowners name,which is wrong.It should be like other utilities,in the users name.

 

[kathryn d]

It doesn't work like that though. You can have two identical houses next door to each other. One decides to add the $20 per week for the water infrastructure and "delivery to the tap" costs whilst the other just sucks it up (like we have to do now).

Which house will sit vacant?

As soon as the first house is rented, the second house is available.
There are more considerations, besides the rent.
How flexible the leases are, whether pets are permitted.
The houses may be seem identical, but there are always slight differences.


That's like saying all tenants are the same because they have the same income.
Or all houses should charge the same rent, if they have the same number of baths/bedrooms.

It is really more about supply/demand.

 

[wylie]

It is a bit chunk of money for "nothing in return". Tenants are pretty savvy Katherine.

 

[Ideo]

Will the rent be reduced by a pro rata amount in line with passing on this fee?

Will overall rents as a percentage of income be lower like they are in the UK?

Will we get rid of negative gearing like in the UK?

I agree on water. If there is a meter it should be the tenants cost.

 

[BMW]

yes wouldn't rents just drop to compensate for the charges now going to the tenant?

As a landlord i don't mind paying the flat charges but all variable charges should go to the tenant.

 

[geoffw]

I agree that it's about supply and demand.

If the system moved to a system where the tenant pays rates, where there's a higher vacancy rate there will be a move to dropping rents by a corresponding amount. In the long term both the tenant and the landlord will end up in the same position.

 

[Scott No Mates]

In the nanny state of australia I rent out my I.P and have the huge quarterly rates bill which seems to be increasing by around 8% each yr.
thanks

Rates in NSW (at least) are pegged to inflation, if any council needs to raise rates above that, they need to make a strong case to IPART to get a special exemption. Usual exemptions tend to be for major infrastructure/capital works eg: purchase of site like Hornsby quarry which had ongoing remediation costs. When this work is complete, special levy component of the rates will cease and the rates will decrease.

If tenants were to pay the rates either directly or through reimbursement, then rents would drop by a corresponding amount as well - in many areas rents are higher than mortgage repayments (if it is an IP you get the tax benefit of the expense in any case).

If $200-300 per quarter is your biggest gripe in the world and going to sink you financially, get out of property and leave your money in the bank where you can sleep soundly on a measly 3-4% return (minus the taxes).

 

[geoffw]

If $200-300 per quarter is your biggest gripe in the world and going to sink you financially, get out of property and leave your money in the bank where you can sleep soundly on a measly 3-4% return (minus the taxes).

... Or go commercial, where the tenant pays the rates.