The Rental Market

[alexlee]

There are currently lots of articles in the mainstream media regarding the rental sqeeze. Plenty of 'greedy landlords squeezing renters' type of articles. Many detail what you can do in the event of 'unreasonable' rent increase demands by landlords.

Now I think landlords should keep the place in good condition. So if something is broken we should fix it. Whether you can request the tenant to steam clean the carpets when they leave is grey and depends on the circumstances.

What gets me is that tenants can claim 'unreasonable' rent increases (though the article did say that's hard to prove). I remember a few years ago there were lots of 'for rent' ads in Sydney with rent free periods (I saw one for 4 weeks rent free). Where can landlords complain when their tenants make unreasonable demands?

I would have thought it's all supply and demand. Leaving broken toilets unfixed, etc is wrong but surely we should be allowed to charge as much rent as the market will bear. Now the media is saying 'high rent is keeping people from saving to buy their own homes'. This after years of ridiculously low yields, when landlords subsidised tenants' living expenses? You have GOT to be kidding.
Alex

 

[Ricardo29]

its a disgrace alex. im about to rent soon and i think youre all sick greedy horrible individuals. if i so much as sniff a bad smell or have a leaky tap, im going straight to a current affair and today tonight.

 

[sailor]

its a disgrace alex. im about to rent soon and i think youre all sick greedy horrible individuals. if i so much as sniff a bad smell or have a leaky tap, im going straight to a current affair and today tonight.

Richardo, I would like to think you have said this in jest. If not, would you not approach the PM/owner to have a repair fixed, in the first instance?

 

[TJamesX]

There are currently lots of articles in the mainstream media regarding the rental sqeeze. Plenty of 'greedy landlords squeezing renters' type of articles. Many detail what you can do in the event of 'unreasonable' rent increase demands by landlords.

Now I think landlords should keep the place in good condition. So if something is broken we should fix it. Whether you can request the tenant to steam clean the carpets when they leave is grey and depends on the circumstances.

What gets me is that tenants can claim 'unreasonable' rent increases (though the article did say that's hard to prove). I remember a few years ago there were lots of 'for rent' ads in Sydney with rent free periods (I saw one for 4 weeks rent free). Where can landlords complain when their tenants make unreasonable demands?

I would have thought it's all supply and demand. Leaving broken toilets unfixed, etc is wrong but surely we should be allowed to charge as much rent as the market will bear. Now the media is saying 'high rent is keeping people from saving to buy their own homes'. This after years of ridiculously low yields, when landlords subsidised tenants' living expenses? You have GOT to be kidding.
Alex

Isn't it the same when land lords carry on about land tax etc etc. People moan and complain about things they don't like.

A property investors dream would be to have property prices rising, rents rising, have their losses all tax deducted (including non cash losses) and then have this repeat over and over never having to sell and pay tax while at the same time trot out the line of "we provide low cost housing because the goverment can't".... and so far I think they are getting a pretty good deal.

Unfortunatly most people aren't analysing the property market to maximise their return of capital, some just want somewhere to live, have a family and have a life..... It may be more economic for people to rent and own investment properties, but I think the majority over time just want a PPOR to live in, and rent increases are making this much harder on top of high prices

I think most are really complaining to the Govt because they are in a position where their living expenses are rising, they can't save for a PPOR, but wages aren't really going anywhere, and they feel a bit squeezed.... renting in Australia is a bit different to Europe - where renters are not treated as 'lower class' they have much longer term agreements (security) and rental increases are largely regulated (and in line with wage increases).

Now the media is saying 'high rent is keeping people from saving to buy their own homes'. This after years of ridiculously low yields, when landlords subsidised tenants' living expenses? You have GOT to be kidding.
Alex

I thought this was the reason landlords expenses are 'subsidised' by tax payers - so landlords could 'subsidise' tenants living expenses?

Despite this I agree... we are in a free market and the landlords have the right to rent at market rates, if tenants think they're getting raw deal they should be putting pressure on govts (state and fed) to provide housing at a reasonable cost and sort out policy to make this happen... because obviously the current mix of state and fed policies seem to be putting pressure on the housing system

or maybe we should all buy IP's and rent to each other so everyone gets tax deductions and cheaper living expenses - that would be the economically optimum choice for all??

Just my thoughts

TJ

 

[simonjulie]

Tenants are nice people and landlords are nice people too. Let's not degrade ourselves by stooping to bag out and label whole groups of folk just because they offer or take up a service.
It is just that different folks have different needs and obligations and if those needs and obligations are fulfilled through compromise then everyone is happy for now.
The fact of life in our society is that the cost of everything just keeps increasing and that's just how our western society functions. Unfortunately at different times through the economic cycles some folks benefit more than others, depending on their focus. Does that make that group bad, evil, corrupt?
There are people out there doing bad, evil and corrupt stuff, surely the rest of us can see and alert others that we should not do business with such folk.
Just educate others and ourselves to be better equipped to face the challenges of our society.
I believe this forum goes some way in that direction.

Simon

 

[redwing]

Speaking of Renting;

talking to the neighbours (who are renting and shortly moving) in our area (Perth Suburb) there are about 160 properties for sale at the moment and only 9 rental properties available

 

[alexlee]

http://www.smh.com.au/news/national...s-to-curb-rents/2007/02/09/1170524303958.html

I just wonder why landlords never get this sort of sympathy......

Ah well. I'm the one who always says play the game as it is, not as I want it to be. I charge whatever the market will bear, adjusted for whether they're good tenants or not. Let the games begin! The pendulum is finally swinging back towards landlords.
Alex

 

[dave99]

Whether a rent rise is unreasonable or not relates to the market rent for comparable properties. So if your rent is in line with comparable properties, you can raise the rent without fear.

The law around unreasonable rises is directed more toward landlords who raise the rent by a huge amount in order to get rid of a tenant for no good reason or a discriminatory reason. I think tenants should be protected from this.

The burden is on the tenant to PROVE that the rise is unreasonable, this is quite difficult. This is reflected in the fact that typically less than 20 tenants even bring such claims each year.

- Dave99

 

[BV]

its a disgrace alex. im about to rent soon and i think youre all sick greedy horrible individuals. if i so much as sniff a bad smell or have a leaky tap, im going straight to a current affair and today tonight.

Ricardo, That's not a nice thing to say.
We were all tenants once and some of us still choose to rent.
Housing is expensive and someone has to pay for it.
It's not the landlord's fault that housing is expensive.
Investors are providing the housing for people to live in.
If it wasn't for them, governments would have had to provide housing
instead and we would end up living in housing commision run estates.
If you can't afford to pay the rent you have the option to go to your boss
and ask for a pay increase, or to look for another house or a new job.
When the interest rates increased in the past
and the average mortgage went by $15/week (each time),
I didn't see any tenants complaining then.
Anyway, rent a place and get a long lease if you want and wait,
You haven't missed the boat yet, There is plenty of vacant land in WA
and things are likely to get better in the future.
Good luck.

 

[BBarnes]

Hi,
I would hope Ricardo's response was 'tongue in cheek'.
If it wasn't.......................?
Bill

 

[alexlee]

This is getting more and more Twilight Zone. From the Melbourne Age:

Rent rises price out families
By Mary Bolling
February 12, 2007 12:00am
RENTS have jumped up to 50 per cent through Victoria's in-demand suburbs, pricing out struggling families and singles.

Ya know something? I think I'm being priced out of buying a Mercedes SL55. I really think the govt should give me a tax break or assistance to buy one.

If you can't afford to live in an area, go elsewhere. You've had years of low yields, why weren't you saving?
Alex

 

[tubs]

Exactly Alexlee

They HAVE had years of really low yields. So did they put any of that money aside? Well, the probably didnt, but they needed that new plasma for when they DID buy their own place.

 

[Dazz]

Alex,

We were grappling with these same thoughts a couple of years ago. The whole thing boiled down to one simple thing....

We were continually buying assets that attracted clients without a "reasonable" capacity to pay a "decent" rent.

We were completely stumped, and couldn't see a way forward, until we read a Lease, which clearly showed the client had the capacity to pay. The **light bulb** suddenly went on.

If the rent for the client is tax deductible, they can afford to pay you more.

We immediately stopped buying assets that attracted clients who couldn't afford to pay a decent rent level and who didn't get a tax deduction for paying the rent to you. This seems intuitive to us now, but it took us over 2 years of hand wringing and indecision to come to grips with it, as it was completely foreign to everything our families and close associates were doing.

Since then, we haven't had to grapple with any of these "woe betide me - I'm just a poor little battler, I think I need a Tenant Union adviser to go in and bat for me" issues.

Anyway.....pushing my 'wheelbarrow' again.....sorry. All these posts re-affirm our decision.

 

[alexlee]

Though I've always used PMs and if the tenant didn't / couldn't pay the rent, they just left and I got another tenant. Given the current rental market, I think it's going to be much easier to raise rents.
Alex

 

[DavidMc]

Great thread Alex,

I agree. It's just a part of life if we wish to enjoy the benefits capitalism brings to our society.

If there is one can of coke left in the milk bar and two people want it, who should it go to?

 

[alexlee]

Great thread Alex,

I agree. It's just a part of life if we wish to enjoy the benefits capitalism brings to our society.

If there is one can of coke left in the milk bar and two people want it, who should it go to?

In the absence of extreme conditions like someone will die of starvation if they don't get the item, whoever is willing to pay the most for it gets it. Living within 20km of the city is NOT a government promise. Maybe part of the issue is bad urban planning and lack of public transport or whatever, but it is how it is. If people don't like it, move away. You want a good transport system? Go to Tokyo or Hong Kong.
Alex