Landlords have lashed out at tenants claiming they have too many rights and that property owners are being forced to sell as they are constantly demonized.
The number of former rental properties on the real estate market has increased by 30 percent in a year, according to data from real estate analysis company Suburbtrends.
Nearly 12,000 former rental properties were put on the market across the country in the year to January – accounting for 18 per cent of all listings.
Australian landowners claimed they had been forced out of the market for a variety of reasons, including strict regulations and high land taxes.
Others argued that the market was unfavorably skewed toward renters with laws, such as allowing pets, enough to deter investors from leasing their homes.
The number of ex-rental properties offered on the market has increased by 30 percent in a year, according to data from real estate analysis company Suburbtrends
“Rental yields and tenants having more rights than property owners means I’m better off keeping my money in the bank than buying a rental property,” one person wrote online.
One landlord explained that there are tenants who care for their pets and are happy to cover costs associated with damage caused by their furry companion.
However, they added that many tenants are taking advantage of the ‘wear and tear rules’, which leave the homeowner without a leg to stand on.
‘The proposed changes regarding pets are deterring landlords en masse. Without the right to refuse permission for pets, they remain vulnerable to some tenants,” they wrote.
‘There are plenty of great tenants who care for their pets and are happy to cover 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 cost of repairing damaged floors to replace .
‘Tenants abandon the application and ask permission for a pet a month later and owners have no leg to stand on.
‘Do you blame them for leaving? Too much stress for their sacrifices made to own these places!!”
In Western Australia, South Australia, Tasmania and NSW, tenants must request permission to have a pet and landlords can refuse the request.
In the ACT, Northern Territory and Victoria, permission must be sought, but if landlords refuse it, they have 14 days to submit a form to their state body.
One landlord said they were about to sell their investment property, despite not raising the rent for three years.
‘TThat’s what happens when you demonize landlords,” they wrote.
“We’re not all greedy bastards. I’m about to sell my investment property, where I haven’t increased the rent in three years, but I can guarantee the next investment owner will.”
Suburbtrends data showed landlords were selling in 320 suburbs where rental vacancy rates were below 1 percent.
Landlords are succumbing to high interest rates and stricter regulations, with the gap between repaying an investor mortgage and rental income widening.
On a $500,000 loan, an investor has seen their monthly payments increase by $1,580 since rates rose in May 2022.
Meanwhile, rental income has not kept pace with rental prices increasing by $463 over the same period.
Landlords are also subject to strict regulations, including a proposed Green Party campaign to limit negative gearing and capital gains taxes.
‘I have one investment property, of course with a mortgage. I just got my land tax bill, which is double last year’s,” one landlord noted.
A third said: ‘I’ve owned rental properties. Financing costs have skyrocketed, as have small maintenance costs. I can do much better with income generating blue chip stocks and not deal with tenants, agents, local authorities, tradies’.
Landlords are selling their properties due to high interest rate pressure on servicing their loans, strict rules for tenants and proposed regulations around negative gearing and capital gains taxes. It means there are fewer properties on the market for potential renters during Australia’s rental crisis
A fourth added: ‘As a landlord of many properties the simple fact is that the rules and regulations have become increasingly difficult for landlords. Other problems for landlords include sky-high council rates, insurance and interest rates.’
Another Australian said they owned four investment properties that they had sold in the past 18 months.
“I had a belly full of tenants damaging properties, the workers/greens blaming bad landlords for every problem that messed up the housing market, rising interest rates, constant talk of negative gearing changes from the left, etc,” wrote she.
The overall bad situation is expected to continue as landlords will sell their investment properties amid the country’s rental crisis.
The situation is further exacerbated by strong population growth and the continuing shortage of new homes and apartments.
Potential renters face increasing competition to secure a home and rising rental costs.
The latest report from investment research firm SQM Research shows that national vacancy rates for rental properties continued to fall to a low of one per cent in February.
The total number of vacant rental properties across Australia stands at 30,161 properties – down from 32,108 in January.
Only Perth and Adelaide remained stable, but other major cities recorded a decline in vacancy rates, with Sydney, Canberra, Darwin and Hobart down 0.2 per cent and Melbourne and Brisbane down 0.1 per cent.
While vacancy rates in the combined capitals were at the second lowest level ever in March, asking prices for rentals rose by 1.2 percent.
Potential tenants are facing higher weekly asking prices, with the cost of units in capital cities rising by a further 1.2 per cent in the 30 days to March 12.
The national average weekly rental price for a home also recorded an increase to $721, with Sydney seeing the highest weekly rental price for a home at $1,054.16 per week.
Managing Director of SQM Research Louis Christopher said vacancy rates are likely to decline in March, putting extra pressure on Aussies looking for a rental property.
“Our rental market update today reveals a further fall in vacancy rates across the country,” Mr Christopher said.
‘It is a seasonal increase in demand that we see every year at the beginning of the year, but which is certainly problematic because the current rental market is still in crisis.
‘Going forward, we believe vacancy rates are likely to fall again in the month of March as the number of weekly rental properties has fallen so far since the start of the current month.’