Why Tenants & Landlords Are The Way They Are? The Tenant vs. Landlord Debate

[wylie]

Hi Lizzie. I would have no trouble renting out what you have described, and when we first bought our IPs I wouldn't have really wanted to live in them. However, over the years as we have done them up as we had funds to do so, maybe a new kitchen, new bathroom, polish the floors, add a deck etc..... the tenants certainly do improve as the rent goes up.

We have had a few tenants who have rented one particular house who have been less than ideal, having loud arguments late at night, and causing issues with the neighbours, who know us and contact us (as we have asked them to do with any issues we can fix). This was our least desirable place, but we (again) slowly improved it until it now is attracting a much better quality tenant.

I know this sounds snobby, but it is a fact.

So, actually it is not so much that I want my IPs to be good enough for me to live in them, but that I want them good enough to get really good weekly rent.

If I had a ramshackle old house near the uni, I would have a different viewpoint altogether because many uni students dont want or need a more genteel place to live. Many just want somewhere cheap to sleep and study.

Wylie

 

[Ausprop]

"What subsidy are you speaking of? Someone on benefits, or are you implying that landlords 'subsidise' renters? "

taxpayers subsidise the majority of renters. If you are a taxpayer, aren't a property investor and you own your own home you are being royally done over as you fund both the tenant and the landlord.

 

[Smilla]

in what capacity?

 

[Les]

G'day Smilla,

you also forget the tax breaks landlords receive through owning investment properties. That is another 'whammy against the tax payer base'

Oh, yeah, true. But would you prefer that renters pay the "true rate" so that taxpayers aren't disadvantaged? Or, in other words, would you promote a 40 - 50% increase in rents to allow this to happen? I think the Labor Govt. attempted something like this back in 1985 - it didn't shape up too well.... Why? Because the "supply/demand" curve got seriously bent out of shape. If things had continued that way, over time, things may have settled down. But, instead, the Govt reversed the previous ruling in 1987.

Smilla, it is always easy to sit back and rail against "the way things are". In essence, reality is what it is, not the way you would like it to be. We play by the rules "as they are" - if the rules change, I'd guess we would all adapt to suit the new reality.

Regards,