Why negatively geared landlords are going to struggle the most with reducing rents for tenants

Discussion in 'Property Market Economics' started by Peter2013, 22nd Apr, 2020.

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  1. hieund85

    hieund85 Well-Known Member

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    How many property owners do it for their PPOR?
     
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  2. Melbourne_guy

    Melbourne_guy Well-Known Member

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    That's an immaterial point but not an unsurprising attitude.

    Landlords are being paid to provide an accommodation that is safe and habitable. What the landlord does for their personal purposes is irrelevant to the tenant.
     
  3. hieund85

    hieund85 Well-Known Member

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    You know nothing about me so stop making assumption about my attitude. I simply asked a question in response to your post.

    Back to the point, is there any regulation/legislation required annual gas and electrical safety check for rental properties in Australia? If there is, I will do it. If not, why should I do it? How can you quantify/evaluate the neccessity of the check and also its frequency? All gas and electrical works are required to be conducted by qualified tradies/technicians to the Australian standards so I do not think annual check is neccessary. And again, what you think is neccessary does not mean others have to agree with it.
     
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  4. MB18

    MB18 Well-Known Member

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    Leaving the gas/elec safety topic aside, THIS is the attitude that gives landlords the 'greedy' reputation for whoever was asking on page 1 of the thread.
    It's a reluctant strive for the minimum.
     
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  5. hieund85

    hieund85 Well-Known Member

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    Why this attitude make landlords greedy? Can you elaborate? And I am only talking about the annual check as suggested/demanded by the other poster so I don't think you can leave it aside in the discussion. And by the way, are you and the other poster a landlord and you guys think a landlord like me is gready? Or you are talking from a tenant point of view and you think there are many things landlords have to do to satisfy tenants?

    How can we determine which are neccessary and which are not? As a landlord I had agreed to replace an old split unit (still running well) because it costed the (good) tenant quite a bit in ongoing cost without increasing rent. But I had also refused a request from another (good) tenant to replace a mailbox and the blinds just because they are old and not very nice. Am I greedy? Maybe in the eyes of those demanding tenants. But do I care? No, absolutely not.
     
    Last edited: 26th Apr, 2020
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  6. wylie

    wylie Moderator Staff Member

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    Again... you are lumping all landlords into one box. We are not all in that box. We are very good landlords. But you likely won't every be convinced there are good landlords.
     
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  7. MB18

    MB18 Well-Known Member

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    Quite the contrary, I have had some incredibly good landlords (one I maintained a social relationship with when I eventually moved out), but they are not in the majority.

    To be fair, I've generally dealt with agents as an intermediary so I'm sure some fault actually rests there.
     
  8. MB18

    MB18 Well-Known Member

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    I cant elaborate any further than what you read.
    Someone asked where the greedy reputation comes from and in your own words if it's a regulation I will do it, if not why should I?

    It's not a critique on your desire to do a check or not (hence I put it aside), it's an attitude of striving for the minimum.
     
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  9. hieund85

    hieund85 Well-Known Member

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    You still don't get my point. When I was talking about regulations, it is just for the annual gas/electrical safety check. No more than that. There are things I do not required by any rules/regulations. I did give one example in the previous post. And I belive many many landlords also do something similar. At the end of the day, if I am happy with a tenant, I will try to look after them in the best way that I can. But of course, is there any business that do not want to minimise cost? I always try to have a balanced cost-benefit approach though.

    Anyways, I am done here. Not interested in convincing some random people that I am not a greedy landlord and not all landlords are greedy. Not my business.
     
    Last edited: 26th Apr, 2020
  10. MB18

    MB18 Well-Known Member

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    I never accused you of being greedy, and I set aside your topic of the safety check to emphasize that

    Yes, particularly if they are more interested in maximizing customer value. Not every business is interested in doing things the cheapest way possible, much as not every customer is interested in the cheapest product.
     
  11. The Y-man

    The Y-man Moderator Staff Member

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    For me, it's a business.
    I absolutely strive to minimise costs, while trying to maximise the satisfaction of my cusotmers.
    It's a balancing act, but nothing unusual for any business.

    The Y-man
     
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  12. hieund85

    hieund85 Well-Known Member

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    That what I mean. Minimising cost does not mean cheapest. It is a relative term. Minimal cost to achieve a certain level of quality/customer satisfaction.
     
  13. The Gambler

    The Gambler Well-Known Member

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    For me I don’t do the minimum. I see it as a long game. I never put the cheapest stuff, I do a few things a year that aren’t necessary but benefit the tenant (and of course future rental appeal) and if there is a repair needed I do it immediately.

    I assume I’m not alone in doing it this way. A reletting fee plus advertising plus lost rent for a few weeks all adds up. And better to take care of decent tenants than to have them think about moving as it helps both of us out in the long run. Dunno. If I were under financial strain I may have to think differently though to be honest.
     
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  14. turk

    turk Well-Known Member

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    If your land lord hasn't volunteered to do this have you done this to keep your family and self safe?
     
  15. Angel

    Angel Well-Known Member

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    I would never have gas in a house, I am aware it could explode. As for electrical checks, I get them done every few years when an electrician is on site for some other reason, as it only takes about 20 minutes and I am paying a call out fee anyway. I believe there is no regulation to get electricity checked, but I do it anyway just because.
     
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  16. Omnidragon

    Omnidragon Well-Known Member

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    Oh sorry I mentioned that in jest
     
  17. 2FAST4U

    2FAST4U Well-Known Member

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    "Property acquisition as a topic was almost a national obsession. You couldn't even call it speculation as the buyers all presumed the price of property could only go up. That’s why we use the word obsession. Ordinary people were buying properties for their young children who had not even left school assuming they would not be able to afford property of their own when they left college"- Klaus Regling on Ireland.
     
  18. skater

    skater Well-Known Member

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    All good! My comments weren't aimed at you.
     
  19. iloveqld

    iloveqld Well-Known Member

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    So do we need to do gas and electrical check annually by law? Which states?

    Personally, I got the mainboards check every time a tenants left, and before the new one coming in anyways as you never know what someone did in the house.
     
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  20. Omnidragon

    Omnidragon Well-Known Member

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    Yea honestly if people have an agreement they should stick with it, especially in commercial leases. When times are good, many organisations (not all of course) make serious profits. Not like they share that with landlords in most instances (unless youre Woolworths or Coles).

    Now times are tough, and they want a rent cut lol. Especially guys like Premier Invesetments (eg Peter Alexander which makes a mint) or Chemist Warehouse, if not blatantly refusing to pay rent in some instances. Can I refuse to pay my land taxes? All I can say is, wtf.