Aussie landlords reveal how they really feel about tenants – and one of the biggest reasons they’re selling

Landlords have lashed out at the excessive rights of Australian tenants, with many selling their properties because they are constantly demonised. 

The number of ex-rental homes listed on the real estate market jumped by 30 per cent in a year, data from real estate analytics company Suburbtrends found.  

Almost 12,000 ex-rental properties were put on the market across the country in the year to January – accounting for 18 per cent of all listings. 

Rising interest rates are a major factor in prompting investment property owners to sell up, but other say they had been forced out of the market by strict regulations and high land taxes.

‘Rental returns and tenants having more rights than property owners means I’m better off keeping my money in the bank than buying a rental property,’ one wrote online. 

Others said laws were now unfavourably geared towards renters – such as allowing pets indoors. 

Laws have been changed in some states to make it easier for tenants to have pets. 

One landlord explained some tenants do pay for damage caused by their furry companions but others take advantage of rules to avoid such payments, and demand their bond back.

‘The proposed changes to pets is scaring off landlords in droves, without having the right to refuse permission for pets they are left vulnerable to some tenants,’ they wrote. 

‘There are plenty of great tenants who take care of of their pets and are happy to pay any damages caused by them, but there are others who will fight tooth and nail using fair wear and tear rules to dud landlords out of costs to replace damaged floors.

‘Tenants will leave them off applications then a month later ask permission for a pet and owners will not have a leg to stand on. 

‘Do you blame them for getting out? Too much stress for their sacrifices made to own these places!!’

In Western Australia, South Australia, Tasmania and NSW, renters must seek permission to have a pet and landlords can deny the request.

In the ACT, Northern Territory and Victoria, permission must be requested but if landlords reject it, they have 14 days to submit a form to their state body.

One landlord said they were on the ‘verge’ of selling their investment property despite not raising the rent for three years.  

‘This is what happens when you demonise landlords,’ they wrote.

‘We’re not all greedy scumbags, I’m on the verge of selling my investment property, which I haven’t put the rent up for three years, but I can guarantee the next investment owner will.’ 

Suburbtrends data revealed landlords were selling in 320 suburbs where rental vacancy rates were below 1 per cent. 

Landlords are also buckling under high interest rates with the gap between servicing an investor mortgage and the rental income widening.  

On a $500,000 loan an investor has seen their monthly repayments increase by $1,580 since interest rates rose in May 2022. 

Meanwhile, rental income has not kept pace with rents increasing by $463 over the same period. 

Landlords are also subject to strict regulations including a proposed Green Party campaign set to limit negative gearing and capital gains tax. 

‘I own one investment property, with a mortgage of course. Just got my land tax bill which is double last year’s,’ one landlord commented. 

A third chimed: ‘I have had rental properties. Financing costs have gone through the roof as has small maintenance costs. I can do much better with income producing blue chip stocks and not deal with tenants, agents, local governments, tradies.’

A fourth added: ‘As a landlord of many properties the simple fact is the rules and regulations have been made harder and harder for landlords. Other issues for landlords have been sky rocketing council rates, insurance & interest rates.’

Another had sold four investment properties in the past 18 months.  

‘I had a gutful of tenants damaging the properties, the laborites/greens blaming evil landlords for every issue bedevilling the housing market, rising interest rates, constant talk about negative gearing changes from the Left, the list goes on,’ they wrote.

As more landlords sell up, the supply of properties on the rental market diminish and prices therefore rise.

The situation is further exacerbated by soaring population growth greatly increasing competition for homes.

The latest report from investment research house SQM research found national vacancy rates for rentals continued to decrease in February to a low of one per cent. 

The total number of rental vacancies across Australia stands at 30,161 residential properties – a decrease from 32,108 in January.  

Only Perth and Adelaide remained stable, however, other major cities recorded a decrease in vacancy rates, with Sydney, Canberra, Darwin, Hobart falling by 0.2 per cent and 0.1 per cent in Melbourne and Brisbane. 

While the March vacancy rate across the combined capital cities was at its second lowest level on record, rental asking prices rose by 1.2 per cent. 

Prospective renters are faced with higher weekly asking prices with the cost of units in capital cities rising an additional 1.2 per cent over the 30 days to March 12. 

The national median weekly asking rent for a dwelling also increased to $721, with Sydney seeing the highest weekly rent for a house at $1,054.16 per week. 

Managing Director of SQM Research Louis Christopher said vacancy rates are only likely to decline further.  

‘It is a seasonal demand increase we see at the start of each and every year but is most certainly problematic due to the fact the current rental market remains in crisis,’ he said. 

‘Going forward, we believe vacancy rates are likely to decline again for the month of March as thus far weekly rental listings have fallen since the start of the current month.’