I have been a landlord for over 4 years. I can’t say it has been an enjoyable experience being a landlord and a property manager with call outs in the middle of the night, non paying tenants and being screamed at for no reason. But to put it bluntly we all have to make a living.
The Coronavirus moratorium was the nail in the coffin for me as a landlord. A slobby, abusive, slow paying tenant that had finally reached the end of their two year lease could finally be evicted in September and I could get on with selling the property. I couldn’t sell it with the tenant on the property as the place looks like a dump and they hurtle abuse during inspections. But with the Victorian government extending the moratorium to 12 months I am stuck with them for an extra 9 months.
Even though the moratorium ends in March you cannot give notice before which means they get another 2 to 3 months again and I have missed peak selling time. This person is working, financial, unaffected by the pandemic but still protected by the law. You can get around it but no-one wants to deal with VCAT.
The costs in maintaining a property can be high, the returns mediocre and the stress high. Unlike other businesses we can only write off $300 in capital gains per item unlike other businesses that can write off a new vehicle. Also the continuing increase of tenants rights and minimum standards will make low income housing unprofitable. If having low income housing with full insulation, low energy appliances and full gas and electricity inspections annual is so important for tenants then make it across the board for all housing. You cannot sell until a house meets that standard. That sounds fairer.
All of these extra expenses will drive up rents considerably pushing those it claims to protect out of the market. The cash in hand rentals for sub standard properties is big enough, this will only make it bigger.
How about someone looks after Landlords. Most are mum and dads or retirees. Not big business. Bring back criminal damage for where someone wrecks a property and make them pay. Give some decent write offs for business. As a manager of two properties (and maintenance) I cannot even claim car costs.
It will take me over 12 months to get out of being a landlord. I was originally selling one property to buy in a better location. Now I am out. If more people like me sell out to home owners will the government step up with housing. Of course not. That’s why they put so much on us.