Would you withdraw your IP from the rental market?

Discussion in 'Property Market Economics' started by jyeung80, 8th Aug, 2018.

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Would you withdraw your IP from the rental market?

  1. Yes

    16.7%
  2. No

    83.3%
  1. jyeung80

    jyeung80 Well-Known Member

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  2. Dean Collins

    Dean Collins Well-Known Member

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    Im ok with 1 increase a year.

    Im not ok with "modifications without consent"
    Im not ok with "pets"

    Its ridiculous that the govt thinks they can not worry about rental stock shortages when they implement rules like this. Next we'll be seeing articles about people complaining rent is too high due to lack of rentals.

    The same way once they changes the LTCG rules for expats I decided to no long purchase IP's in Sydney.....if this was implemented in NSW yep I would sell out of the market.
     
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  3. Sackie

    Sackie Well-Known Member

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    1 increase a year. No biggie.
    Having pets. No biggie.
    Bond capped at 4 weeks. No biggie.
    No rental bidding. No biggie.
    Have functioning stove, heating and deadlocks. No biggie.
    Minor modifications. No biggie.

    Investors seriously gonna pull properties off the market because of that..? And they're serious about building wealth?? um yeah ok. :rolleyes:
     
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  4. TheSackedWiggle

    TheSackedWiggle Well-Known Member

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    Last edited: 8th Aug, 2018
  5. D.T.

    D.T. Specialist Property Manager Business Member

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    Maybe with your properties, some people have nice ones :p

    No ability to end lease is a biggie though. Opens up a whole level of entitlement / behaviours if you have to keep people.
     
  6. spludgey

    spludgey Well-Known Member

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    I'm hoping that slightly more onerous terms might mean a slight increase in rents.
    Hopefully everyone else will withdraw their properties from the market! :D

    I've got no properties in Victoria, but I'm thinking that if it passed there, other states might be next.
     
  7. Sackie

    Sackie Well-Known Member

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    Hey! My places are live-able.....ish...
     
  8. Rex

    Rex Well-Known Member

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    From what I can see in that article, the listed reforms sound pretty reasonable. Except maybe the minor modifications bit, but the devil is in the detail I guess. I would be concerned about anything that makes it harder to evict bad tenants. Most of this is all is already law in WA, “baseless scaremongering” sounds about right.
     
  9. WellKnow

    WellKnow Well-Known Member

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    Agree with Leo2413, we have great tenants in 1 of our investment properties. before the laws were proposed last year they asked if they can do some modification and add different blinds and hang photos we said ok, 6 months back they asked if they can get a dog as they are a young family we said ok, for 2 years we haven't increased the rent as they keep the house in real good condition. So I don't think as a Victorian investor I ll be too phased with the new changes.
     
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  10. Sackie

    Sackie Well-Known Member

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    Way to go I reckon. Look after the people who are helping you build your wealth. Too many investors get caught up on the small stuff and forget how vitally important the tenant part is in the whole equation of building wealth.

    No tenants =s game over.
     
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  11. willair

    willair Well-Known Member Premium Member

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    I voted no,there is no way I would even consider going back to self-management after doing that job for 28 years..A good switched on property manager is worth their weight in gold,and each month the cheques just turn up in the account and zero stress and worry..imho..
     
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  12. Graeme

    Graeme Well-Known Member

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    I'm with @Leo2413 in that a lot of these things aren't problems.

    In fact, I'd argue that functional heating, stove, and locks really should be standard, and it's not a good look for the REIV to be complaining about that. OK, it's a blanket "we don't like this" statement, but if they said "we like the broad thrust, but not X, Y, and Z" rather than spitting their dummy out, they might achieve more.

    The fact is that a large proportion of Victorian rental properties aren't in a great state. I've seen places that need basic maintenance, or even have a damp problem, but the agent is still asking for top dollar.
     
  13. D.T.

    D.T. Specialist Property Manager Business Member

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    Absolutely.
    I see a lot of places where the property manager advises work needs to be done but the landlords cant afford it or don't have an interest in keeping their properties in good nick.
     
  14. S.T

    S.T Well-Known Member

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    Will be interesting how landlord insurance deals with these change. Especially around reduction in bond amounts, allowing tenants to vacate immediately (family violence) etc.
     
  15. Lil Skater

    Lil Skater Well-Known Member

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    I don't have a problem with most of the changes either and I think a lot of media just make it into a bigger deal than it should be.. BUT, I have posted my own thread, done a Facebook live video and a couple of other discussions about the issues I do have.

    Namely capping the bond at 4 weeks regardless of the type of property - it takes a minimum of 6 weeks to get a tenant out on rental arrears, not to mention any repairs required leaving owners well out of pocket. Often investors will be out of pocket in these situations anyway, even with insurance - so capping it means potential larger losses to investors.

    The other one is the changes to the notice to vacate. This is a BIG issue, this will remove options to cease a tenancy after the initial first fixed term. Not only will it give the tenant half the time to leave as the existing 120 day notice (assuming outside the first lease), it will also mean you will need a reason under the RTA to remove a tenant. So if you have someone that knows how to play the system but the lease is already periodic, or they're just not what you want, you will no longer have the option to remove them unless it's a breach of agreement, renovations, moving in etc.

    I think the NTV issue will cause more tenant turnover, more costs and instability to tenants. I have plenty of tenants that go through rough patches, or just need to be worked with a little and they stick around long term. Others it doesn't work and they'll be booted out as soon as possible because we'll have less of an opportunity to work with them.

    Minimum standards? Should've been a thing anyway.
    Auto bond refunds for tenants? Meh, we only have 10 business days to do what we need to do anyway - so this really shouldn't make a difference.
    Minor mods? As long as it's fixed, or clarified further, that's cool.
    Pets? Not ideal for every home, most tenants have them anyway and since they're not currently covered under the RTA you have no rights to remove a tenant for having a pet unless under certain circumstances anyway.
    Family violence? There's also provisions for this, they're different at the moment - but anyone in this situation shouldn't have to stay for any reason. Someone's safety is more important.
    Rental bidding? Never agreed with it anyway, if a tenant offers that's cool - but actively encouraging it I think is unethical anyway.
    Long leases now covered? Awesome, should've been a thing anyway.
     
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  16. Big Will

    Big Will Well-Known Member

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    So with the rental increases what happens if the tenant says we want air-con in each bedroom room midway through the year?

    As a LL with this request and not having the ability to increase the rent (if I just increased it x months ago) I would flat out deny the request and say we can talk about it in y months when it is up for renewal.

    We literally negotiated a $10 pw increase for our rental because the tenant wanted air-conditioning for the property after they moved in. After all why would I want to spend money for something just so they are happy if they were happy to rent the property before at that rate without the air con... I see this could be an issue with the rent increase part.
     
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  17. Brady

    Brady Well-Known Member

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    Let them do it under the modifications.
    They can pay for it :)
     
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  18. Big Will

    Big Will Well-Known Member

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    I did tell the tenant they could put one in if done professionally but they would have to leave it there when they left as they wouldn't be able to bring the wall/hole back to the same as before.

    They didn't have the money - so leaves the tenants in a bit of a pickle.
     
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  19. thatbum

    thatbum Well-Known Member

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    Depending on how the amendments are drafted I suppose, but I would say its likely that you could just mutually terminate the existing lease and just enter into a new agreement, with additions of aircon and rent increase as desired.
     
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  20. Big Will

    Big Will Well-Known Member

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    Would the PM then also want to charge for a new lease fee?

    TBH there is not much point discussing it further unless it is enacted and if it does happen then look at what it requires. To me it will be simple either continue as is or if we cannot increase due to the changes then tell the tenant that I would love to but unfortunately the law doesn't allow me to increase so we will have to wait until renewal and discuss then (or they can do it themselves).