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. Lil Skater

    Lil Skater Well-Known Member

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    Generally speaking you can negotiate by mutual consent, I don't imagine this will change - but heck, it's the government so who knows.
     
  2. Owlet

    Owlet Well-Known Member

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    This is reasonable. The unfair part is with the new reforms - tenants do not need to ask.
    You may have a newly built IP that is freshly painted and tenants wish to paint each of the kids bedrooms a different colour. On the other hand you may have a bright yellow interior throughout the whole house and would like to make it more neutral. What if you have timber skirts and arcs in the house and the tenant decides they would like them to be white?
     
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  3. Someguy

    Someguy Well-Known Member

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    Surely if rules are more in favour of tenants then landlords are going to be fussier with who they allow to rent. I see this pushing rents up in some cases as tensnts who have been knocked back a few times might throw a higher offer to secure a rental property
     
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  4. Tom Rivera

    Tom Rivera Property Manager Business Member

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    AGREE 1000000000000%.

    The harder it is for us to enforce our Landlord's rights, the harder it is for us to consider renting to "risky" tenants! This means anyone who went through a hard time and might have slipped with their rent, lived with people who damaged the house, young people with no rental history, older people with no rental history, people on marginal incomes, people with pets, people with kids, people with too many kids, the list goes on!!!

    The ultimate result of these sorts of imbalances is homelessness and increased cost of living.
    ________________________

    As far as the changes themselves, I agree with some of the previous posters- the scary one is being unable to remove tenants outside of very specific circumstances, that's terrifying and I desperately hope it doesn't spread up north...!
    Some of the others are a bit daft (small modifications, pets) and others are welcome (minimum living standards).
     
  5. Coffee

    Coffee Well-Known Member

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  6. sash

    sash Well-Known Member

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    I reckon it will be easier to move tenants out...all I have to do its to put it up 4%...that is not an unreasonable increase.

    Which means that on a property leased for 370pw...it should be able put $15...which is way more than I usually raise rents.

    The vacancy rates in VIC is 1.6%...so doing this sort of ****** is not a good idea.
     
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  7. Dmarkw

    Dmarkw Well-Known Member

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    I agree, the minor modifications are a bit of a concern and anything that makes it more difficult to evict bad tenants, but everything else is quite reasonable.
     
  8. Dmarkw

    Dmarkw Well-Known Member

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    But at the end of the day you’d only ever lease to risky tenants if you didn’t have another option. In a market where you can push up rents you’ll most likely have better options - in a market where you have to accept sub-optimal tenants you probably won’t have Scope to push-up rents. Being unrealistic means you’ll be out of pocket with a long vacancy..
     
  9. Tom Rivera

    Tom Rivera Property Manager Business Member

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    In lower socioeconomic areas with average housing, it doesn't make any difference whether you're in a rising or falling market- the vast majority of people looking at these homes don't look amazing on paper.

    Besides which, what do we define as risky? The more difficult it becomes to enforce our rights, the more risky people start to look. Before we know it, you'll only be able to safely rent to the 1% of tenants with a long gleaming history of real estate renting, substantial savings and well paying stable jobs.
     
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  10. Dmarkw

    Dmarkw Well-Known Member

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    Agree with this, but it still doesn’t mean investors will push rents up, because the market won’t bear it. Yes, just means it’ll be harder to find tenants yr willing to accept..
     
  11. Tom Rivera

    Tom Rivera Property Manager Business Member

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    That effect is just simple supply and demand- external to all other factors, decreasing supply with an unchanged demand drives up prices.
     
  12. John_BridgeToBricks

    John_BridgeToBricks Buyer's Agent Business Member

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    I always find this inclination to over regulate so silly.

    The best regulation is the free market. If a land lord wants higher rent, they they should have a working stove, heating etc. Conversely the market will bid down the price of properties without these things.

    I want all properties to have these things, and landlords will provide them if it gives them extra rent. No regulation required.

    Regulating (or rather contorting) up to a particular standard just increases prices at the lower end and hurts the most vulnerable. It's what happens when politicians virtue signal.
     
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  13. Joynz

    Joynz Well-Known Member

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    If only it was that simple!

    Unfortunately, it seems there are landlords who expect tenants to live in houses without facilities such as a working stove.

    It’s the most vulnerable people - who can only afford the cheaper rent - who will put up with bad conditions just to have a roof over their heads.
     
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  14. BoatArrival

    BoatArrival Well-Known Member

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    For free market to work there must be informational symmetry (I hope I don't need to provide citation for reserach, there were quite a few Nobel prizes for research on market failures), i.e. both counter parts have about the same information. Property markets whether rental or purchase are quite opaque compared to other assets that I'd personally see as more "free market". If there are more mandatory disclosures and penalties for not disclosing material information then yeah I agree free market approach may work.

    For example the previous property that I rented had water damage that was cleverly covered up. I wasn't about to move furniture around during the inspection so didn't notice it, however in any other asset class such behavior would attract a penalty for hiding a material fact.
     
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  15. John_BridgeToBricks

    John_BridgeToBricks Buyer's Agent Business Member

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    We are "living" the empirical evidence that free markets work.

    In most cases, it is obvious that properties have certain attributes, such as stoves, heating etc. So there is not an information deficit in this case. And you would be surprised what the market has baked into the price.

    In some cases, where there is water damage, I accept that this could be temporarily hidden, but for how long? And are you saying that the landlord won't be economically punished by allowing water damage go un remedied? Again, you don't need a government regulation to tell a land lord that water damage needs to be fixed, of course.

    Land lords are incentivised to provide the best possible product, not the worst. This is how capitalism represents a constant race to the top, and government regulation is usually just posturing.
     
  16. thatbum

    thatbum Well-Known Member

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    Do you really believe this is so for residential property though?

    I'm usually all about capitalism, don't get me wrong - but I think its an okay line to draw at intervening where basic human necessities are involved.
     
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  17. John_BridgeToBricks

    John_BridgeToBricks Buyer's Agent Business Member

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    Well, the empirical evidence is really clear.

    Properties are in much better condition in free market capitalist economies. In socialist economies, properties are basically in disrepair.

    It is private ownership that ensures it is maintained properly. Ronald Reagan put it best when he said, "no one washes a rental car".
     
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  18. neK

    neK Well-Known Member

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    And that's where the problem is.
    Have a decent property, attract decent tenants. Things work, people don't complain.

    Additional mod cons can always be negotiated. I can't see how it's fair to demand an air con with no increase in rent if it wasn't there to begin with.
     
  19. D.T.

    D.T. Specialist Property Manager Business Member

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    I wish more landlords saw it this way
     
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  20. inertia

    inertia Well-Known Member

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    Can you give me an example of a "free market"? the Australia market, for example, already has significant intervention, and rightly so.

    Cheers,
    Inertia.
     

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