Why these hard-working Australian landlords are NOT raising their tenants’ rents: ‘I can’t’
- Pete and Alana, from Paramatta, refuse to raise the tenants’ rent
- The report shows that many tenants are struggling
A few Sydney landlords are bucking the trend and refusing to raise their tenants’ rents.
The country’s rent crisis is so dire that housing experts say official records show no comparable shortage of available leases since the 1930s.
That raises rents six times faster than wages – making it very difficult for working Aussies to keep up with price increases.
But Pete and Alana, the owners of Paramatta’s oldest restaurant Kouzina Greco, can’t bring themselves to take advantage of Sydney’s housing shortage.
“We have an investment property that is rented out, where we haven’t had our own pocket other than the municipal rates,” Alana said.
“But now we put in about $1,500 out of pocket every month. We don’t have a mortgage, but it’s almost a mortgage.
“I can’t raise the rates for our tenants, I can’t. I leave it as long as I can because I feel sick doing that to them.
“For me now to raise the rent $20 or $30 for each tenant — okay, so I’m going to make $1,000 or more in profit every year, but you know what? I’d rather hold on than make these families uncomfortable.”
Pete and Alana, the owners of Paramatta’s oldest restaurant Kouzina Greco, can’t bring themselves to take advantage of the rental market like so many other landlords
Their comments come as the rising cost of living leaves a family of four with two full-time minimum wage workers with just $73 after expenses, while many struggle to cope with rising rents.
That’s the conclusion of a new cost analysis from Anglicare Australia, which suggests that people on the lowest incomes are falling behind.
The report showed that a single full-time minimum wage worker has $57 left after essential weekly expenses.
And a single parent with one child on minimum wage cannot afford basic necessities and is $180 short after rent, transportation, food, education, and childcare.
Housing was the largest living expense, with average rents rising more than 30 percent over the past three years.
“These figures confirm what Australians already know: the cost of living is soaring,” said Kasy Chambers, executive director of Anglicare Australia.
“Essentials such as food and transportation are skyrocketing and housing is more expensive than ever.”
Ms Chambers said many people took on extra jobs and turned to charities for help with food, rent and medicines.
Australians who are struggling need real action and real leadership. That means turning the minimum wage into a living wage, limiting unfair rent increases and investing in housing for people in need.’
The report called for the scrapping of planned income tax cuts, tougher rent laws, more social and affordable housing, emergency payments to cover utility bills, and an urgent injection of funds into emergency responders.
By the end of 2022, all Anglicare Australia emergency responders reported an increase in demand for services ranging from 10 per cent to 50 per cent compared to the start of the year.
Many reported seeing new customers who had never used their service, and the new customers often came from households with paid employment.
Anglicare compared data from the Australian Bureau of Statistics on household spending and a recent SQM Research rent report to the minimum wage, which will be $882.80 per week from 1 July for a 38-hour work week.
The figure of a $57 single household remaining each week had improved from last year’s result of $29 but remained “precariously low,” the report said.