Let’s be honest, one of the reasons rents are skyrocketing is because of greed.
Yes, those who have a mortgage on an investment property need to cover rising interest payments.
Never forget, they already own a home and have decided to use the housing market as a profit making strategy.
Another reason for higher prices is Real Estate agents advising landlords to raise their rental prices to make a larger profit year after year.
Not forgetting that the higher the rental, the more the real estate agent creams off the top.
Without controls in place, rentals will never go down, forcing an ever larger percentage of the population to become homeless.
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Spot on Bretrick.
My stepdaughter and family were told they had to vacate the property in 3 months as he was selling up.
Utter rubbish,he rented it out again,and put the rent up by 25%.
PURE GREED.
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I am going to take the devils advocate here .
Firstly expenses for rental properties have also risen .
You need to get certificates for gas and electrics every year and plumbers and electricians have put their rates up .
Also you have to maintain the property if not they deteriorate.
As you have rightly pointed out the estate agents take a large chunk of money for ‘ management .’ Added to that VAT is also taken away
The reason for high rents is supply and demand .
There are too few properties and landlords are not charities .
It up to the local councils to provide more social housing .
But the crux of the matter is that there are too many people .
More and more landlords are leaving the rental market because they are not making any money and it’s not worth the agro from difficult tenants .
It’s easier to put their money into a safe account and just get the interest
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I have every sympathy for tenants facing rising rents, however, I can only speak for the UK Bretrick, but net zero is forcing landlords to abandon their properties because of new laws and regulations that means they must bring their properties up to a new green spec. And in most cases it costs a packet and simply not worth the effort of keeping rental properties.
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My point is, landlords already own the home they live in and decide to purchase a second, third, fourth home so as to increase their income.
An income paid for by the luckless renter.
There have always been landlords .
In the U.K. many people own a second home the rent of which acts as their pension .
Thing is Bretwick the world isn’t fair some have more than others.
Even Jesus said the poor are always with us .
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Landlords are in it to make a profit … or else why bother, it is afterall a business.
The problems arise when they unjustifiably hike the rental increase or evict good tenants to sneakily raise the rent.
In my area it’s not uncommon to see a property that rented out for £850 a month 3 years ago to now cost anything between 1,200 to 1,400 a month.
Even given the cost of living that is an extortionate increase of over 50%
Another factor that is helping push monthly rentals sky high is that some landlords are registering with their local councils who run resettlement schemes to house migrants that the governemt are trying to remove from hotels.
It’s not uncommon for a landlord to be offered a lucrative contract and for a term of 5 years.
This in turn exacerbates the shortage of affordable housing.
How many landlords do you ever see going bankrupt?
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As others have said it is business and there is supply and demand. Australia doesn’t have enough houses or flats. Rental affordability is at its worst for decades
The State governments need to share a lot of the blame they have not invested in housing for decades. Short term rentals are another factor especially on the south coast (AirBnB type of thing). Every landlord deserves a return on investment otherwise (s)he would seek other forms of investment though negative gearing combined with the 50% discount on capital gains makes housing a bit more attractive for the average punter.
In the Illawarra rental vacancies are 0.7% (usually 5%) there are just no houses to rent.
It is no good blaming landlords, government at all levels has a lot to answer for with their total lack of foresight and planning
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