With rising interest rate costs, inflation, increased property maintenance and low vacancies, rents are rising faster than the market has seen for many years.
While the government is keen to label landlords as taking advantage of the situation, the average landlord is just trying to create a rental income with a fair return for their investment. The government is keen to impose restrictions on landlords, but there is never any talk of the government restricting land tax or rates.
According to the Property Mentors, the majority of landlords are investors with one property (54%) with about a third having two or more properties.
These landlords are subject to rises in interest rates, government charges and increases in property maintenance. They too have bills to pay and are left with no choice but to pass on these increases.
In Queensland, the government is having another round of consultation will all stakeholders before considering another round of legislative changes. Whether you are a tenant or a landlord, it is in your interest to express your opinions now. The consultation ends on the 29 May. For more information read the Options Paper. You can have your say by
- Completing the Online Survey
- Email your submission to firstname.lastname@example.org
- Post your submission to Renting in Queensland, PO Box 690, Brisbane 4001
Tenants may find their rents have risen to a point where they can no longer afford to remain in the property. This creates a problem, because finding any rental property could be difficult and the cost of relocating can be quite high.
This is a time when all tenants need to take stock of their current situation. A priority will be to establish yourself as a responsible tenant. Most landlords these days will ask the previous one or two past landlords for references about the tenant making the application together with their rent schedule.
Demonstrating you are a worthy tenant may help you avoid excessive rental increases.
Here are my tips to help you be a worthy tenant:
- Always pay your rent on time.
- Never get in arrears with your rent.
- Keep the property clean and tidy.
- If you have a pet, make sure the landlord has given you permission to keep the pet on the property and it does not disturb other tenants.
- Always let the landlord know if a repair is required.
- Never make loud noises or play loud music which may upset other tenants.
- Never breach the terms of your lease and be issued a “Notice to Remedy Breach”.
Glenis Phillips SF Fin
Here are interesting articles I have found for you.
- Rent Crisis: Landlords better off investing in super since 1990s, new report reveals rental market totally broken (Nathan Mawby, Property journalist)
- New study shows 3 in 4 tenants happy with their landlords (Gerv Tandena of Your Investment Property)