Landlords have lashed out at tenants, claiming they have too many rights and that landlords are forced to sell because they are constantly demonized.
The number of former rental homes listed on the real estate market increased 30 percent in one year, according to data from real estate analysis company Suburbtrends.
In the year to January, almost 12,000 ex-rental properties were put on the market across the country, representing 18 per cent of all listings.
Australian landowners claimed they had been forced out of the market for a number of reasons, including strict regulations and high land taxes.
Others argued that the market was unfavorably oriented toward renters with laws, such as allowing pets indoors, sufficient to deter investors from renting out their homes.
The number of former rental homes listed on the market increased 30 percent in one year, according to data from real estate analytics company Suburbtrends.
“Rental returns and tenants having more rights than landlords mean it’s better to keep my money in the bank than to buy a rental property,” one wrote online.
One landlord explained that there are pet-sitting tenants who are happy to cover any costs associated with damage caused by their furry companion.
However, they added that many tenants take advantage of the “wear and tear” rules, leaving the landlord without a leg to stand on.
“The proposed pet changes are scaring landlords en masse, as not having the right to deny permission to keep pets leaves some tenants vulnerable,” they wrote.
‘There are many excellent tenants who look after their pets and are happy to pay for any damage caused by them, but there are others who will fight tooth and nail using fair wear and tear rules to cheat landlords out of the costs of replacing damaged floors. .
‘The tenants will leave them off the applications and a month later they will ask for permission to have a pet and the owners will have nothing to stand on.
‘Do you blame them for going out? Too much stress from the sacrifices they made to own these places!!’
Renters in Western Australia, South Australia, Tasmania and New South Wales must ask their landlord for permission to keep a pet indoors.
While in the Australian Capital Territory, Northern Territory and Victoria, tenants must ask their landlord for permission.
If a property owner refuses to give consent, they must provide an appropriate reason and request approval from the state agency to deny the request.
One landlord said he was “on the verge” of selling his investment property despite not raising the rent for three years.
‘T“This is what happens when you demonize landlords,” they wrote.
“We’re not all greedy bastards, I’m about to sell my investment property, whose rent hasn’t been raised for three years, but I can guarantee that the next investment owner will.”
Data from Suburbtrends revealed that landlords were selling in 320 suburbs where rental vacancy rates were below 1 per cent.
Homeowners are bowing to high interest rates and increasing regulations, and the gap between servicing an investor mortgage and rental income is widening.
With a $500,000 loan, an investor has seen his monthly payments increase by $1,580 since interest rates increased in May 2022.
Meanwhile, rental income has not kept pace with rent increases of $463 over the same period.
Owners are also subject to strict regulations, including a Green Party campaign proposal to limit negative gearing and capital gains tax.
‘I own an investment property, with a mortgage of course. I just received my land tax bill, which is double what it was last year,” said one homeowner.
A third chimed in: ‘I’ve had rental properties. Financing costs have skyrocketed, as have small maintenance costs. “I can do much better with blue-chip, income-generating stocks and not dealing with tenants, agents, local governments or commercial companies.”
Homeowners are selling their properties due to high interest rate pressure on servicing their loans, strict tenant rules and proposed regulations on negative gearing and capital gains tax. It means there are fewer properties on the market for potential tenants amid Australia’s rental crisis.
A fourth added: ‘As an owner of many properties, the simple fact is that the rules and regulations have become increasingly difficult for landlords. Other problems for homeowners have been very high council rates, insurance and interest rates.
Another Australian said he owned four investment properties which he sold in the last 18 months.
“It had a belly full of tenants damaging properties, Labour/Greens blaming evil landlords for every problem plaguing the housing market, rising interest rates, constant talk of negative changes from the left, and the list continues,” they wrote.
The overall dire situation will continue as landlords sell their investment properties amid the country’s rental crisis.
The situation is further exasperated by strong population growth and the continuing shortage of new homes and apartments under construction.
Prospective renters face increased competition for housing and rising rental costs.
The latest report from investment research house SQM found that national vacancy rates for rentals continued to decline in February to a low of one per cent.
The total number of vacant rental properties in Australia stands at 30,161 residential properties, a decrease from 32,108 in January.
Only Perth and Adelaide remained stable; However, other major cities recorded a decline in vacancy rates: Sydney, Canberra, Darwin and Hobart fell by 0.2 per cent and Melbourne and Brisbane by 0.1 per cent.
While the March vacancy rate in all capital cities combined was at its second-lowest level on record, rental prices rose 1.2 per cent.
Prospective tenants face higher weekly asking prices with the cost of units in capital cities rising by a further 1.2 per cent over the 30 days to March 12.
The national median weekly rent for a home also saw an increase to $721, with Sydney recording the highest weekly rent for a home at $1,054.16 per week.
SQM Research CEO Louis Christopher said vacancy rates are likely to decline in March, putting additional pressure on Australians looking to rent.
“Our rental market update today reveals a further decline in rental vacancy rates across the country,” Christopher said.
‘It is a seasonal increase in demand that we see at the beginning of each year, but it is undoubtedly problematic because the current rental market remains in crisis.
“Looking ahead, we believe vacancy rates are likely to decline again during the month of March as weekly rental listings have so far fallen since the beginning of the current month.”