Rents to soar

Rents to soar

17 February 2011 by Staff Reporter 0 comments

Matthew Sullivan

Recent changes to the Residential Tenancy Act could force landlords to increase their weekly rent.

"Landlords, by and large, do not want to place financial pressures on their tenants by increasing rents but they are now in a position of facing many additional expenses themselves as the result of recent legislated changes,” LJ Hooker Cessnock and LJ Hooker Kurri Kurri managing director Bryce Gibson said.

"This is not a case of landlords becoming greedy. The additional cost they incur will unfortunately have to be passed on, which will impact on their tenants."

Mr Gibson is supportive of government policy that addresses environmental sustainability of investment properties and improves tenant safety.

However, he says, the reality is that these policy changes will cost investment property owners more money over the short to medium term.

"With hardware upgrades such as taps and fittings, plus labour, there is realistically an upfront landlord outlay of around $1000 per property for an average three bedroom home with one bathroom,” Mr Gibson said.

"I can easily see rents having to increase an average of $30 a week minimum to keep up with any stock extra costs; and we have no desire to increase our costs to landlords or reduce our service to them and or their tenants.

"Unless a variety of government charges and policy-related costs to owners of investment properties are addressed, I worry about where rental affordability is heading.”

Matthew Sullivan

Recent changes to the Residential Tenancy Act could force landlords to increase their weekly rent.

"Landlords, by and large, do not want to place financial pressures on their tenants by increasing rents but they are now in a position of facing many additional expenses themselves as the result of recent legislated changes,” LJ Hooker Cessnock and LJ Hooker Kurri Kurri managing director Bryce Gibson said.

"This is not a case of landlords becoming greedy. The additional cost they incur will unfortunately have to be passed on, which will impact on their tenants."

Mr Gibson is supportive of government policy that addresses environmental sustainability of investment properties and improves tenant safety.

However, he says, the reality is that these policy changes will cost investment property owners more money over the short to medium term.

"With hardware upgrades such as taps and fittings, plus labour, there is realistically an upfront landlord outlay of around $1000 per property for an average three bedroom home with one bathroom,” Mr Gibson said.

"I can easily see rents having to increase an average of $30 a week minimum to keep up with any stock extra costs; and we have no desire to increase our costs to landlords or reduce our service to them and or their tenants.

"Unless a variety of government charges and policy-related costs to owners of investment properties are addressed, I worry about where rental affordability is heading.”

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