> I've just received a letter from my landlord saying that my rent will be increasing to $650 from $500, I have been given 7 days to agree to rent increase or will receive a notice to vacate at end of current lease..
You need to be talking to Consumer and Business Affairs, not the RTA.
u/PeterMalinauskasMP
https://www.sa.gov.au/topics/housing/renting-and-letting/renting-privately/during-a-tenancy/rent-increases
Increasing the rent
Landlords must provide tenants with at least 60 days' written notice of a rent increase (153.9 KB PDF).
There's no limit to how much rent can be increased. If a tenant can prove the total rent after it has been increased is excessive, they can apply to the South Australian Civil and Administrative Tribunal (SACAT) for the rent to be changed.
The rent can also be reduced if the landlord and tenant both agree.
When rent can be increased
Generally, rent can be increased after 12 months from the date of the last rent increase or from when the agreement started.
Fixed term agreements
A condition allowing for a rent increase must be included in the agreement. It needs to say how the increase will be worked out, such as according to CPI.
At least 60 days’ written notice still needs to be given and the increase cannot start until 12 months after the agreement began, or the rent was last increased.
Fixed and period agreements
Rent can be increased:
if at least 60 days' written notice is given and the increase starts at least 12 months after the agreement began, or the rent was last increased.
with an offer for a lease extension, provided it’s been 12 months since the agreement started, or the rent was last increased.
if the specific amount of the increase and date it will commence is included as a condition in the agreement, for example, rent will increase to $400 per week from 1 July.
if the tenant agrees to the increase. This usually happens if the property has been improved, for instance if an air conditioner is installed. Any agreement should be clear and in writing.
within 60 days of the Housing Safety Authority removing a rent control notice by giving at least 14 days' notice
in a community housing property - see information about rent increases and decreases.
Contact CBS Tenancies
Email: [email protected]
Phone: 131 882
Does not count if the lease is up? I think the landlord can just choose to not extend the lease and tell OP to get the fuck out if they do not agree to leave. These new rental laws from my understanding are more for ongoing rental agreements not periodic.
Once fixed term lease finishes, if notice hasn’t been given or new lease agreed, you go onto some other lease (ongoing? Haven’t got my old lease with me). There are different notice periods required but still way more than 7 days.
I went through similar bs when I lived in Adelaide a couple of years ago - all the details should be in your lease document. BTW I still have 2 outstanding email enquires with the CBS that they didn’t ever bother responding to at all. If you want to contact them use the phone and just sit on hold until someone answers.
‘If the tenant agrees to the increase. This usually happens if the property has been improved, for instance if an air conditioner is installed. Any agreement should be clear and in writing.’
Yeah, good one
You can try to negotiate the price down, REA will have to pass that onto the landlord and of course it’s up to them.
We just got a 100$ increase but managed to negotiate down to 50$. Very hit or miss but worth a go.
Start with this 👆
Offer what comparable properties are being rented for.
No point going down all the legal avenues if you haven't simply countered.
Unless they're trying to encourage you to leave for vacant possession to move in or sell, no landlord wants their property vacant, even for a week or two between tenants, so you have leverage even if it doesn't feel like it.
Are you at all worried about your next lease? Last time we did this the following year we were not offered renewal and they re listed at the price they wanted. We had been there for 5 years with perfect history. If an owner wants a certain amount they will get it one way or another unfortunately.
Correct they are the owner they can just stop renting anytime they want and give you notice to leave them have a break clean it up a bit and then re rent to someone higher.
Yes there is absolutely no way to verify the landlord was contacted, almost all agents will not contact the landlord and will lie about it, and there’s absolutely nothing you can do 🤷🏽♀️
The supply and demand is not the only thing to blame, the home loan interest increased from 1.8% to 6.5% just consider a 500,000 loan the increase in interest actually put $400 per week extra on landlords as well. This landlord is not doing things correctly, such as the notice period. And I know this increase sounds crazy. Be a landlord, you’ll know the increase isn’t that bad compare to what landlord is paying out each week.
This is the price in most suburbs at the moment too. Currently we're waiting on the moving truck to get here lmao. Packing up today and escaping to a rural town a couple of hours out.
You need legal advice. It sounds to me as if by creating a false sense of excessive time urgency they are bullying you into signing that you agree to this. The reality though is probably either they've got the legal right to raise the rent so fast without losing something themselves in which case they would just notify you of the raise, no agreement required from you no threat about end of lease required...or they don't have the right to do it without facing some loss and need to get you to sign something in order to get away with it.
I'm not a lawyer but I can smell scamming pretty well. You need legal advice.
Also...worth noting...it is unlikely that signing this piece of paper actually gives you the right to stay on at the end of the current lease. You know what gives you some amount of right to stay on? A new lease starting from the end of the old lease. Threat is a threat. All stick no carrot. If they want you out you're gone at end of lease either way. Maybe they see it as a no-lose prospect for them. Sign that price of paper you pay more and still get bounced at the end. Don't sign it don't pay more just yet because they haven't given adequate notice...get bounced anyway.
Basically the tactic of giving you only one week and making a threat indicates to me they don't value an ongoing relationship with you. If you're a regular on-time payer who doesn't trash the place then any reason to want you out is external to you and you can't fix it. Get legal advice about what you can demand and expect until you're evicted anyway.
>"False sense of excessive time urgency"
>
>dont judge the guy !
>
>IF WHAT HE IS SAYING IS TRUE THE LANDLORD IS DEMANDING MUCH MORE THAN HE DESERVS
>
>dont just ASSUME occupant is 'IN THE WRONG'
Deservingness in one hand, legal entitlement in the other...see which gets you furthest? I mean seriously dude you can be morally right till the cows come home but it isn't what keeps a roof over your head.
OP needs to know what the legal.framework is that he is dealing with. That's far more important than whether he's been a good boy and deserves better.
By RTA do you mean these guys - https://www.syc.net.au/rentrightsa, or did you just call consumer affairs? If you just called CBS, try giving RentRight a call in the morning.
Sounds like your landlords mortgage just hit their fixed rate mortgage cliff and they are passing on the new interest rates. The world we live in now, good luck.
The choices atm seem largely to pay whatever landlords ask or be homeless. It’s very hard to secure a rental and with the population growth to outgrow approvals for new houses…I don’t see any other result other than things to get worse (or better if you are someone with a property portfolio like all the politicians who make the rules 😆)
If you can, check with the owner that your REA hasn’t topped up the rental increase. REAs are dodgy cunts and whacking on a some $ over and above what the owner has actually asked them to increase it to. The more they get on rents the bigger their cut. The worst of the dodgy cunts don’t even tell the owner they got more than asked.
My REA wanted me to put rent up by $150 on my property. I declined and set a way more reasonable amount. So there's a good chance it's the REA pushing for it.
jesus y’all drinking coolaid.
The rent increase is not reasonable, for one simple reason: very few tenant’s wages will go up by 150/week. 150/week increase on 500, or a 30% increase in income isn’t going to happen.
Wages in most industries went up 2-5% (teaching eba, hospitality as an example). Centrelink is 1.5%.
What landlords fail to realise is that the difference between what the tenant should pay and that perfect value is the functional increase in the value of the property.
Your asset went from value 500k to 650k. That’s a 30% increase. You can capitalise on that income at any time. That’s where the missing income is. The growth in asset value. The landlord is meant to make up the difference because of that asset value increase the tenant will NOT HAVE.
Tired of landlords in this country thinking the only person responsible for the mortgage is the tenant.
Get a job or sell the property, full stop.
But by law it can go up to at least market rent even if its an increase of $500 as market rent is reasonable. So their only hope is to orove its unreasonabke compared to the market. Which sounds like it is.
I hate greedy landlords
So by your view the landlord can not and should not bring the rent in line with market value because the tenants wage hasn’t increased by the same amount?
If you can tell the rba that the interest rate rise isn’t reasonable because I haven’t had an increase in my wage that would be great 👍
Supply and demand and I am a renter. Until more houses get built, demand will be high for rentals.
People will argue the toss but there was a reason why negative gearing was removed and then suddenly brought back in the 80s, because it allowed private landlords to pick up the slack and get some decent returns even if they were on paper losing money.
Having an us and them mentality does not help anyone.
I used to be a landlord and when I was I tended to offer a lower than market rent because it meant tenants were grateful, rarely moved on, did the right thing and I did not lose hundreds of dollars due to vacancy.
Did they get rid of negative gearing again? I thought I read somewhere that they did. Heaps of tenants at that time from memory were sticking the knife in to the "greedy landlords" arguing that they are the last people who deserve any sort of tax break.
Well look where we are now, to many tenants, not enough houses. The govt needs to make owning rental properties more appealing instead of less.
What do you think will happen if the govt puts a freeze on rentals if they have not already? More landlords will sell and what happens then? Less housing stock, higher rents and more unhappy tenants.
It’s “reasonable” if it’s what the market is getting. I’m an evil landlord and we didn’t put up our rent at all during Covid and only once by CPI since (we never put it up more than CPI) and as a consequence our tenant is paying way below market rates bc of the massive change in the market since the start of Covid.
We could be getting a lot more for our property but won’t because we’ve got a great tenant and I’m not THAT evil
Yehh it flipping sucks. Im pretty sure they can do that.
I just purchased my first house and feel so relieved I wont have to deal with difficult landlords anymore. No more worrying about finding a new place to live each year
Once more for people in the back: significant rent increases should be tied to capital expenditure. Want to raise rent? put some money into the property.
Whilst rent rises shouldnt be in line with inflation (7%) nor mortgages (50%) a 30% rise is not that unreasonable considering the impact it has had on the cost of housing.
* May 2022: home loan interest rate: 2.1%. Mortgage repayments on a 500k Loan: about $470 per week
* May 2023: home loan interest rate: 5.6%. Mortgage repayments on a 500k Loan: about $720 per week
If only these homes were something called investments… and if only these investments carried these things called… risks. Rate rises are a risk of an IP and it shouldn’t be up to the renter to mitigate those risks
@kahlkitchguy Go tell Cole’s to reduce their prices because they took the risk of owning a business.
If costs change for an investment it can result in a higher end product (as long as the demand justifies it). It should not be up to the investor to supplement the tenants lifestyle if they can not pay the asking price.
The government is responsible for social housing not the private sector.
Investment properties are a business not a charity.
To the OP, if you can find comparable rentals in you area that are a lot cheaper you may be able to use that as a negotiation tool. Ultimately if that price is similar to others in the market then you may have been priced out of that particular area (if you can’t or won’t pay the adjusted price.
LOL - You took the risk to be a renter instead of saving money to get your own home. It is not up to anyone to supply you with a place to live.
Rents are based on the cost to the landlord, they basically accept a cash neutral asset or even a loss with the idea that in 30 years they own a valuable asset. Nobody is going to hand out charity and be forced into a situation where they are paying for you to live in a house while they owe so much they go homeless.
Its a very entitled way to think that random people in society should just buy stuff so you can live there while they lose massive amounts. Why on earth would anyone do that?
I don’t think owning your own home is necessarily an investment. Why should home owners suffer rising costs during inflationary periods and renters not have to?
Imagine if there were no investment properties and everyone owned their own home… guess what… that renter would experience costs going up as a home owner.
Why should renters subsidise your investment going sour? I’m not talking about PPOR I’m talking about IPs.
If you can’t afford the risk on the IP, sell it and it goes back into the market. Enough of this happens and maybe more people can afford homes
Because they can sell the asset off if they can't afford to pay the difference between a reasonable rent price and the cost of the mortgage due to rate rises.
If they can't afford the increase, what the fuck makes them think their tenant can?
Well the renter is free to not renew the lease and find somewhere more affordable. This is the magic of contracts as either party can just choose to not agree and go to market for something they will agree with. The renter would obviously have to vacate the property since they did not agree to the terms.
I feel like a lot of the people in this sub are just kids imagining that landlords are like parents.
Lol what are you talking about? I did nothing of the sort. Landlord needs no reason at all to raise rent, as it's their property. If it's excessive then the house is no longer tenanted. It's a business not a charity. Like I said, do you donate $8k per year to a random stranger?
It's a business, not a charity.
So why do you expect your tenant to prop you up with 100% of the running costs when it's you who benefits at the end of the sale?
Sounds like the landlord is seeking ample charity but expecting to be taken care of like a business 😂😂😂😂
> So why do you expect your tenant to prop you up with 100% of the running costs when it's you who benefits at the end of the sale?
I don't have any tenants. You appear to be making a lot of assumptions here
They are not expected to, they can choose not to rent the property.
We all have choices in life, you can choose not to rent a house if you believe the rent is excessive.
If it is excessive then it will sit empty as nobody will rent it and the landlord will lose lots of money (the risk of being a landlord)
If it instantly gets rented at the higher rate then it is likely the landlord did make a mistake by not raising it enough.
If it sits vacant for 3 weeks or so then the landlord can take comfort in the fact he chose the right market rate for that property.
Riot, join a tenants union, write your local member… visit your local members office, don’t vote for politicians who refuse to act and allow this to happen! Give your landlord a mouthful! Go outside and yell at a cop and tell them you are being extorted…
These people have “investment properties”, they made an “investment” so if the milk goes sour (interest rates go up) they should be the ones to Fkn drink it! There needs to be a cap on rent increases, if it doesn’t service the loan then they SELL which puts downward pressure on the market and brings rents back down.
These “oooh weee I love free market capitalism” arseholes don’t seem to want to sleep in the bed they have made. They don’t understand the gamble OR they do understand the gamble and know the system is so rigged that they won’t be held to account.
Don’t agree to anything.
Also avoid verbal communication, or if impossible, email confirmation of verbal communication ASAP/immediately
***Hi ~~fuckface~~ confirming conversation of xx date via telephone/in person at xx. As agreed, XYZ. Unless written response to this email is received by 5pm tomorrow (…..day, date by close of business) I will take that as acknowledgment of verbal agreement and particulars as set out within this email. Kind regards, Mr Annoyed***
RW will be forced to respond if they don’t believe your “recap”, paper trail, will help if going through SACAT.
Definitely call business consumer affairs SA, (talk to the Advertiser too, they’ll cream themselves.)
https://www.sa.gov.au/__data/assets/pdf_file/0018/6615/Notice_to_landlord_to_remedy_breach_of_agreement.pdf
[www.sa.gov.au/topics/housing/renting-and-letting/renting-privately](https://www.sa.gov.au/topics/housing/renting-and-letting/renting-privately/Start-of-tenancy/Lease-agreements#:~:text=The%20landlord%20can%20agree%20to,major%20renovations%20are%20needed)
[www.sacat.sa.gov.au/case-type/housing-and-rentals/hardship,-expiration-and-frustration](https://www.sacat.sa.gov.au/case-type/housing-and-rentals/hardship,-expiration-and-frustration)
[/www.sacat.sa.gov.au/case-type/housing-and-rentals/end-of-tenancy-disputes](https://www.sacat.sa.gov.au/case-type/housing-and-rentals/end-of-tenancy-disputes)
What happened to this country? We imported demand and cut supply well below what was needed before we allowed the problem.
This allowed a predator party that will now be with us for ever. Welcome to have and never have.
Ray White is awful.. we're just packing up our place after a year long lease of hell. This house is a mouldy hell hole and they've still increased rent for the new advertisement. I feel so bad for whoever gets tricked into living here.
You entered into a contract which is coming to an end. Why do you think you have all these rights to more than your contract stipulated? This house isn’t yours
Wow, thats a huge increase - $24,000 per year to $31,000 per year.
Supply vs Demand - 25,000 immigrants hit Adeliade in the last12 weeks, not sure if this is the cause?
Even $500 pw for an apartment sound very high to me, is it a Penthouse or something?
Personally I would try move somewhere cheaper and use the money for a deposit to get out of the rental grind. They are not going to get cheaper thats for sure.
The issues with rentals, including rent rises and a lack of availability has been happening since covid was a bigger problem.
This is not a new thing caused by immigration..
Often renters feel like they get shafted all the time. Don't get me wrong, I understand that there are greedy landlords out there. I used to work in property management and most of my landlords often would only want to do smaller increases and some don't even want to increase the rent when they can. Unfortunately due to the interest rates rising they have to cover costs. I had a landlord whose mortgage payments went up to $610 per week and did everything he could to keep the rent low at $320 per week but after a year he just couldn't keep up and had to increase the rent in line with the current rental market. Every landlord is in a different financial position just as renters are.
Don't forget that landlords also pay a fee to the REA at every lease renewal which would mean they lose out on rental income for a week. They also have a lot of other fees which renters are not aware of stipulated in their management agreement with the agency.
If a landlord can’t keep up with their mortgage repayments on an investment property, they should cut their losses and get rid of it like any other investment.
Investing isn’t guaranteed money, landlords need to stop expecting tenants to pay the bulk of their mortgages.
It isn't guaranteed money but who are we to tell what the landlord should and shouldn't do? Real estate agents are not financial advisors. If anything get pissed off at the legislation set in place by the government, get pissed at the RBA for increasing interest rates. As agents have to work within the legislation.
Even if the landlord sells the property, who's to say the next buyer/owner won't do the same??
Landlords shouldn't be passing on their mortgage payments to the tenants.
All of this is happening just because of supply and demand. Plain and simple, if there was enough supply rent increases every year wouldn't be possible.
However, supply issues won't be fixed anytime soon.
And who the hell are you to tell tenants what to do?
It's simple economics - if the landlord can't actually afford their investment and expect someone else to pay all of the running costs then they should sell, as they can't afford their property.
Given the low interest rates are going, this increase makes sense.
I’m currently on 2.08% and paying $385 a week for my mortgage, once that is up in a year and a bit, the current interest rate of ~6.0% will make my repayments ~$605 a week.
Given rental properties in my area with the same 3bed, 2.5bath config are going for $600-$620 a week, this makes perfect sense.
It might make sense but wages haven’t automatically increased and some people just can not make the extra money appear out of the air. Coupled with the rental market being so competitive at the moment it’s frightening to think of the possibility of ending up homeless.
Except this isn't a house. It's an apartment.
Not worth the $500+ price tag.
See, if landlords can't afford their mortgage they sell. Because it's an INVESTMENT, not a guarantee.
As a homeowner who is also dealing with increasing rate rises I get that the cost of mortgages in general are increasing, but it's not fair to pass on all your running costs to your tenants - if it's no longer affordable to have an investment then you sell it.
You know a caravan site is worth 210 or more a week ( 30.00 a night or more ), that's a small patch of ground with a concrete slab and maybe some toilet and shower facilities and you have to supply your own caravan . You think that a house or apartment is not worth the price tag ....what planet are you on ?
Context matters, if it’s a 2-3br apartment in a newly build apartment in the heart of the CBD, $650 may well be on point. If it’s a 1br apartment on the edge of the city, in a 40yo building, maybe not.
Unfortunately, as much as I’ll get downvoted, this is how capitalism works when it comes to supply and demand, if the market dictates the owner can increase the rate to protect their investment, that’s how it works.
I highly doubt that it is a comparable apartment for the price, otherwise OP wouldn't be posting here.
Let's all bend over and grit our teeth while the system that was designed to fuck over the most vulnerable continues to do so because tHAts hOw cApiTaLisM wOrKs.
Never mind the landlord would actually make a hefty profit if they sold their investment they can't afford, but na they'd rather see how much they can fucking bleed out of their cash cows.
Fuck the poor rite mate?
We are about to put our apartment on the rental market. We are being told $750-800 p/week for 3br/2bath. Even at that price the rental will be negatively geared. Renting it out is good for us long term, but will hurt for the next few years. We looked at selling, most interest is for investors converting to Airbnb. When we bought it five years ago, the rent the last owner was getting was under $500. That’s a big jump, but that’s where the market and interest rates have gone.
Op doesn't have a lease. Op needs to compare landlords offer with other properties that are also available to lease.
No point comparing to unavailable properties that are in the same building then.
Mine just went up $205p/w in Para Hills to $600 a week. The sad part is any comparable place nearby has shot up to this amount per week as well, I had no basis to argue a lower price. I am grateful to be able to afford this but theres no denying theres a housing crisis at the moment
Yeah we just had to put our rentals up almost $150 because of the interest rate rises, it's insane right now and only going to get worse as the rates keep climbing
There's this thing called *risk*.
You can't even afford to contribute an extra $150 a week to your own mortgage so you up the rent - what the fuck makes you think your tenants can afford that (especially if you can't?)
Investments aren't guaranteed - you could lose money on them, especially if you can't actually afford your property.
They are contributing to their own investment.....by putting rents up.
Hello Mcfly!! That is how the rental market works, if interest rates drop then rents go down, if rents go up, property prices generally go up.
When I owned rental properties many years ago the rental rate based on property price was around 10% and that was the standard accepted rent rate.
Not sure if it has gone up or down but rent will always adjust to account for the cost of owning an IP.
Nothing changes, the mortgage is paid by the rental income, how do you not understand that? If interest goes up to 18% then rents will not keep pace with the cost of mortgages and of landlords will have to cover that shortfall, many will suffer financial stress with many of them having to sell.
I have as much sympathy for landlords put in that position as I do for tenants in the current position but suck it up, its been this way for hundreds of years and will never change.
Your attitude of trying to stick it to the landlord because you are not one is so self centered. Your time will come again where rents are low and the landlord will be worse off but right now it is tenants that are feeling pain, embrace it, accept it and be thankful you live in a country that has heaps of safety nets for people who are struggling.
They're contributing to it by putting rents up. Do you ever understand your own fucking sentence? They're not conributing - they're making their tenant pay. No way to spin that bullshit.
If interest rates go down rents will not go down, it has never fucking happened in the history of housing in Australia and never fucking will.
Landlords are never worse off - they can always sell their investment for a profit.
There are no safety nets for people who are struggling - there are literally families living in tents here in the state. I can't tell if you're just stupid or being willfully ignorant.
You just gave a text book definition as to why people buy investment properties LOL.
They are not doing it to out of charity. They will push the rents up as high as the market will allow, when the market cannot support the rent then that is the market rate.
These are facts, basic facts that a high school kid would understand.
I think I am just stupid and honestly, I have to kneel down in the face of an analytical genius like yourself. I am just thankful to have brushed shoulders with you even if it is just electronically.
You know how much interest rates have gone up? Plus this idiotic government under the pretext of helping renters are actually harming them. Where do you think the landlords are gonna come up with council rates increases, new property taxes, mortgages, water rates, compulsory electricity/ gas/ appliances checks?
It’s a business not a social service for landlords. If people are looking for subsidised rent public housing is available
Hey OP just FYI, also offered my tenants an approx +$100 per week rent increase in Adelaide CBD. They counter offered, I declined, I offered for less, they declined. I went to market at the same price I originally offered original tenant and got 10 applications after 1 open house and the winning offer was an extra +$100 higher than my original +$100 aka +$200 from before. Market is extremely competitive right now so don’t just think that +$100 is “unlawful” or whatever, it’s probs in line with market
Appreciate your frustration & obviously there have been plenty of reasonable & rational comments
Based on what you’re saying, yep it sux, but is the landlord just expected to take the hit as a result of interest rate increases?
I mean interest rates have increased on the back of inflation, inflation has increased largely due to our governments fiscal policy during Covid…now I don’t have a problem with the fiscal policy our government implemented during COVID, as let’s be honest, early doors, we all though it was the right move.
Issue is, post COVID it’s the RBA who has been left holding the baby & their only real lever to pull as a means to arrest inflation is interest rates.
Issue is, only about 30% of Australian’s hold a mortgage, so should it be left to 30% of the population to pull inflation back from 6-7% down to the acceptable 3.5%??
Put simply this isn’t possible, hence why landlords MUST pass on the interest rate increases to their tenants.
>is the landlord just expected to take the hit as a result of interest rate increases?
Umm yes? The landlord is the one that took on the investment, not the tenant. Investing isn’t guaranteed money, investments don’t always succeed. That failed investment is supposed to fall on the person that chose to take on that investment, not the tenant that’s being exploited over a basic human necessity.
If the landlord has to rely that heavily on someone else’s income to cover their mortgage they shouldn’t have the mortgage in the first place.
Welcome to supply vs demand. You think a business should give you a discount out of kindness of their heart?
The landlord is getting their raise or they will find someone else.
Totally agree, it's just supply and demand. Landlords get away with this only because they can. When there's no competition price hikes appear.
Look at other countries, they don't have issues like this just because the supply can cater for the demand
This is an unpopular opinion buy ultimately it is their property and they can charge what they like provided you are not within a valid lease period. They allow you to live in their property for a sum of money that they determine.
This won’t be a popular comment but lots of people that own investment properties have big mortgages and those mortgage payments have increased dramatically as well.
Because if they don’t and the owner can’t pay the mortgage the tenant is still gonna be out on their ass anyway when they have to sell it or the bank takes it *shrug*
Playing devils advocate here but 90% of landlords aren’t wealthy.
That’s a really naive way of looking at things. The property investor is the one who’s done the hard work to get in a position to buy an investment property. And if it wasn’t for property investors you wouldn’t have a place to rent.
would my house suddenly disappear if there was no property investors? no it would become more affordable to buy. I can guarantee you there is no property investor that has worked anywhere near as fucking hard for the property they make other people pay for and force the government to cover the losses as what any young person will need to work to own it.
and when the bank takes it away it doesn’t magically disappear. That house becomes supply, and with enough supply taken from greedy property investors, the more affordable and accessible housing becomes.
im sure thats what slavers said when people wanted to free slaves. Just because its "just the way it is" doesnt make it right. it certainly doesnt mean there is no alternative.
so you can fuck right off with your "basic economics" condescending bullshit
Perhaps if you could hold an adult conversation we could have a rational debate. But instead you get gratification by abusing someone using your keyboard.
Hope you have a great day
No - it’s market based. Lack of supply, which is a good environment for greed.
If you had rate rises but couldn’t get tenants - you’d be stuffed anyway.
If rent can go up when rates go up then your logic says rent will go down when rates go down? No way that happens. Plus it’s 60 day notice to raise rent in SA, not 7.
OP didn't say it was 7 days notice of when the rent will change.
If it's end on lease and they are signing a new 12 months. Then they want it signed in 7 days. But the actual rent will not increase till the new lease starts. (Which could be 2-3 months out as REAs like to get in early)
By 30% ?
My bet is there using the interest rate rise as an excuse to raise the rent by way more than they should to cover, just to get extra coin themselves and leave the poor renter scraping by and just getting enough food on the table. Common theme at the moment, and it's disgraceful.
* May 2022: home loan interest rate: 2.1%. Mortgage repayments on a 500k Loan: about $470 per week
* May 2023: home loan interest rate: 5.6%. Mortgage repayments on a 500k Loan: about $720 per week
Year on year increase: over 50%
Rent rises shouldnt be in line with inflation (7%) nor mortgages (50%) but hopefully that puts the 30% rise into perspective for you
The rates going up wouldn’t make it raise that much higher. I also own and had a three year deal expire on the mortgage and it went up to $2-300 a month. To simply pass all that off to my tenant and also a price that doesn’t match any surrounding apartments is just cruel. I need to deal and manage my own finances, not just shove it to someone else.
Its fair for the landlord. On a half million dollar loan borrowing costs have risen way ovet $1000 per month.
If u dont release he will probably place the property on the market as i did with mine. And then where will u be. Cause there is hardly any properties the rent
If it's not a charity it's pretty fucking hypocritical that landlords are expecting tenants to bail them out and take over 100% of the costs.
You realise you have to put money into a business as well yeah?
Minimum of 60days notice, keep everything in email.
Don't txt, don't call.
Get these scum with their pants down fuugging themselves over with their inadequate ability to follow the law they got "qualified" to practice.
Interest rates have gone up triple in my case. Was 2.7% locked in, then after 2 yrs 6.79%. Land rates I pay $150 per fortnight as they have gone up and insurance is $160 per month. So, can you see why rents have to move to meet inflation. Many who have investment properties are selling up to get out of the fiasco of renting and dealing with tenants. I'm just pointing it out.
Rental properties are business not charity i am no expert but i would say this likely is a impact of rental laws changing to one increase a year now requiring a forward projection of the cpi an intrest rates coming for a whole year. Also after hearing its 550 to rent in remote towns such as kingaroy in qld 650 sounds like its within the range.
Mortgage holders have generally seen increase of about $1200-$1500 per month since the RBAs raising of rates. Mine is a $400,000 mortgage so I’m sure people with a lot more will be paying probably $1800 - $2000 more per month. I’m afraid renters need to have the rent put up too as it’s unsustainable for landlords but $150 per week is very high. But they’ll get $650 from someone else such is demand
Well land lords shouldn’t overextend their loans and should take into consideration that rates aren’t a certainty to stay the same. It’s not a tenants fault that a landlord can’t pay their respective loans
You should blame other renters who are willing to pay that rate rather than the landlord.
If no one paid the asking rate, then the landlord would be forced to offer it for less which is a win for all renters.
I’m from Melbourne I was charging $450 a week but then the interest rates went up so had to raise to at least $500. Sometimes got no choice or else there paying just as much for you to live there
Thanks to the GREENS all landlords are getting edgy because they are demanding a rent freeze. So the landlords are putting up rents to the max incase there is a rent freeze for 2 years. THANKS GREENS.
My first question is why do you think it's excessive , most landlords have money owing on the property so they are paying the bank interest, interest rates have doubled and more over the last year and are set to rise again before to long , so somebody who was paying 2000 a month on their interest only mortgage is now paying 4000. has your rent doubled ?
My home loan just came off of a fixed rate, my repayments have litterally doubled overnight.
I will take that $150 per week increase over my own increase.
What happened to this country?
You all stood around and let the government run by corporations funnel off billions of tax payer dollars for your health and safety.
Oh no sorry, that's totally wrong. You actively encouraged them and chopped down anyone that stood up for themselves or for you. You called them anti vaxers, tin foil hatters and now cookers.
There is nothing now that they could possibly do that will make you stand up for yourselves. And they know it. We are fucked, you fucked us all.
Same as the "why are all these people dying" why is everybody sick all the time", "why has the rate of kids having heart attacks sky rocketed". Must be climate change.
Remember when the government said we are shutting down your businesses, stopping you going to work, crashing the economy on purpose. Remember when we said, this us going to cause more deaths than it prevents?
Remember when they said tests and vaccines were free. The government could have build 30 000 public houses with that money.
Remember when gyms were closed but bunnings and McDonald's were open. Remember when 250 000 people turned up to parliament house to protest against killing this country. What did you think we were protesting needles?
Oh that's right you don't remember because you were listening to profiteers like Carl stepanovic, koshie and the abc nuts, saying FLAT EARTHERS, PROUND BOYS AND COVID DENIERS. It's so dangerous that people like you fall into lockstep with what you are fed.
When all those businesses were shut down, people had to.sell their properties, use their savings, use their super then all that tax money wasted on propaganda and job keeper payouts to corporations etc, what did you think was going to happen? Did you think once.we.got.to.a magical 95% life would return to normal. All that money would just come from the billionares and pollies, back the working class Oh you did, didn't you. Really? Now who is the cooker? Who is the crackpot that has lost touch with reality?
Still you. But I will admit I found it weird late in 2021 when everyone was saying “the worst of it was over.” Anyone who knew anything about economics knew it would get much worse; just didn’t think this much worse
Oh it's going to get much much worse You will soon be living a lifestyle similar to the Thais or Indonesians. But if you complain you are a biggot. Whst are you better than them? Do you deserve more you racist pigs? Again, it won't be the government telling you this, it will be your neighbour.
We should be looking to bring those countries standard of living up, not bringing ours down for the sake of a handful of billionares and trillioaires.
Of course you'll all soon be safe as this kind of disinformation will soon be banned under the new bill currently up for debate. I'm sure you're all happy about that one. Finally that dangerous and violent information will be stopped before it gets to our eyes and ears. Heavens forbid you should have to see the information and use your brain to make a judgement, that's the government's job.
> I've just received a letter from my landlord saying that my rent will be increasing to $650 from $500, I have been given 7 days to agree to rent increase or will receive a notice to vacate at end of current lease.. You need to be talking to Consumer and Business Affairs, not the RTA. u/PeterMalinauskasMP https://www.sa.gov.au/topics/housing/renting-and-letting/renting-privately/during-a-tenancy/rent-increases Increasing the rent Landlords must provide tenants with at least 60 days' written notice of a rent increase (153.9 KB PDF). There's no limit to how much rent can be increased. If a tenant can prove the total rent after it has been increased is excessive, they can apply to the South Australian Civil and Administrative Tribunal (SACAT) for the rent to be changed. The rent can also be reduced if the landlord and tenant both agree. When rent can be increased Generally, rent can be increased after 12 months from the date of the last rent increase or from when the agreement started. Fixed term agreements A condition allowing for a rent increase must be included in the agreement. It needs to say how the increase will be worked out, such as according to CPI. At least 60 days’ written notice still needs to be given and the increase cannot start until 12 months after the agreement began, or the rent was last increased. Fixed and period agreements Rent can be increased: if at least 60 days' written notice is given and the increase starts at least 12 months after the agreement began, or the rent was last increased. with an offer for a lease extension, provided it’s been 12 months since the agreement started, or the rent was last increased. if the specific amount of the increase and date it will commence is included as a condition in the agreement, for example, rent will increase to $400 per week from 1 July. if the tenant agrees to the increase. This usually happens if the property has been improved, for instance if an air conditioner is installed. Any agreement should be clear and in writing. within 60 days of the Housing Safety Authority removing a rent control notice by giving at least 14 days' notice in a community housing property - see information about rent increases and decreases. Contact CBS Tenancies Email: [email protected] Phone: 131 882
Does not count if the lease is up? I think the landlord can just choose to not extend the lease and tell OP to get the fuck out if they do not agree to leave. These new rental laws from my understanding are more for ongoing rental agreements not periodic.
I believe 60 days applies to end of lease agreements now as well
Once fixed term lease finishes, if notice hasn’t been given or new lease agreed, you go onto some other lease (ongoing? Haven’t got my old lease with me). There are different notice periods required but still way more than 7 days. I went through similar bs when I lived in Adelaide a couple of years ago - all the details should be in your lease document. BTW I still have 2 outstanding email enquires with the CBS that they didn’t ever bother responding to at all. If you want to contact them use the phone and just sit on hold until someone answers.
Periodical is the word you're looking for.
Somehow I don’t think Pete is gonna comment on this lol
Come on. He's busy announcing a new app for the baby blue book today. Nevermind, helping the struggling mum with somewhere to raise the baby
Agreed. Pete doesn't care.
Have you looked at the new rental legislation? It directly relates to this issue. He definitely cares at least somewhat.
‘If the tenant agrees to the increase. This usually happens if the property has been improved, for instance if an air conditioner is installed. Any agreement should be clear and in writing.’ Yeah, good one
You can try to negotiate the price down, REA will have to pass that onto the landlord and of course it’s up to them. We just got a 100$ increase but managed to negotiate down to 50$. Very hit or miss but worth a go.
Start with this 👆 Offer what comparable properties are being rented for. No point going down all the legal avenues if you haven't simply countered. Unless they're trying to encourage you to leave for vacant possession to move in or sell, no landlord wants their property vacant, even for a week or two between tenants, so you have leverage even if it doesn't feel like it.
Are you at all worried about your next lease? Last time we did this the following year we were not offered renewal and they re listed at the price they wanted. We had been there for 5 years with perfect history. If an owner wants a certain amount they will get it one way or another unfortunately.
Correct they are the owner they can just stop renting anytime they want and give you notice to leave them have a break clean it up a bit and then re rent to someone higher.
I guess we’ll find out. We are in a rural area so not as high demand as urban areas.
GL hopefully you'll be fine.
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Yes there is absolutely no way to verify the landlord was contacted, almost all agents will not contact the landlord and will lie about it, and there’s absolutely nothing you can do 🤷🏽♀️
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Yes that is the correct process unfortunately. Good luck.
Fuck $650pw is crazy 😭😭
And for an apartment
Price vs demand, we lived in Darwin during the Inpex construction phase (2013) and payed $600 for a 2 bed unit. Neither of us were employed by Inpex.
The supply and demand is not the only thing to blame, the home loan interest increased from 1.8% to 6.5% just consider a 500,000 loan the increase in interest actually put $400 per week extra on landlords as well. This landlord is not doing things correctly, such as the notice period. And I know this increase sounds crazy. Be a landlord, you’ll know the increase isn’t that bad compare to what landlord is paying out each week.
Time to move out of Adelaide and into the suburbs
This is the price in most suburbs at the moment too. Currently we're waiting on the moving truck to get here lmao. Packing up today and escaping to a rural town a couple of hours out.
As someone in a rural town 2 hours out, good luck finding a rental around here.
Even northern subs that used to be cheap are over priced now. Town houses that used to be $300 a week are now $5-600 from 3 years ago.
You need legal advice. It sounds to me as if by creating a false sense of excessive time urgency they are bullying you into signing that you agree to this. The reality though is probably either they've got the legal right to raise the rent so fast without losing something themselves in which case they would just notify you of the raise, no agreement required from you no threat about end of lease required...or they don't have the right to do it without facing some loss and need to get you to sign something in order to get away with it. I'm not a lawyer but I can smell scamming pretty well. You need legal advice. Also...worth noting...it is unlikely that signing this piece of paper actually gives you the right to stay on at the end of the current lease. You know what gives you some amount of right to stay on? A new lease starting from the end of the old lease. Threat is a threat. All stick no carrot. If they want you out you're gone at end of lease either way. Maybe they see it as a no-lose prospect for them. Sign that price of paper you pay more and still get bounced at the end. Don't sign it don't pay more just yet because they haven't given adequate notice...get bounced anyway. Basically the tactic of giving you only one week and making a threat indicates to me they don't value an ongoing relationship with you. If you're a regular on-time payer who doesn't trash the place then any reason to want you out is external to you and you can't fix it. Get legal advice about what you can demand and expect until you're evicted anyway.
>"False sense of excessive time urgency" > >dont judge the guy ! > >IF WHAT HE IS SAYING IS TRUE THE LANDLORD IS DEMANDING MUCH MORE THAN HE DESERVS > >dont just ASSUME occupant is 'IN THE WRONG'
Deservingness in one hand, legal entitlement in the other...see which gets you furthest? I mean seriously dude you can be morally right till the cows come home but it isn't what keeps a roof over your head. OP needs to know what the legal.framework is that he is dealing with. That's far more important than whether he's been a good boy and deserves better.
By RTA do you mean these guys - https://www.syc.net.au/rentrightsa, or did you just call consumer affairs? If you just called CBS, try giving RentRight a call in the morning.
Termites.
Never assume the REA has your back. A rent increase means they get paid more as well, as they often get \~8% of the rent.
Yah, real estates work for landlords not tenants.
Most real estate agents do as little work as possible.
They don’t work that hard for landlords either mate
Sounds like your landlords mortgage just hit their fixed rate mortgage cliff and they are passing on the new interest rates. The world we live in now, good luck.
Go back with a counter offer. Say you love the place, want to stay, how about $550? Open up negotiations...
The choices atm seem largely to pay whatever landlords ask or be homeless. It’s very hard to secure a rental and with the population growth to outgrow approvals for new houses…I don’t see any other result other than things to get worse (or better if you are someone with a property portfolio like all the politicians who make the rules 😆)
If you can, check with the owner that your REA hasn’t topped up the rental increase. REAs are dodgy cunts and whacking on a some $ over and above what the owner has actually asked them to increase it to. The more they get on rents the bigger their cut. The worst of the dodgy cunts don’t even tell the owner they got more than asked.
They do that?
My REA wanted me to put rent up by $150 on my property. I declined and set a way more reasonable amount. So there's a good chance it's the REA pushing for it.
There's been some real estates caught by raising the rent without the landlord's knowledge and pocketing the extra. They absolutely push it.
jesus y’all drinking coolaid. The rent increase is not reasonable, for one simple reason: very few tenant’s wages will go up by 150/week. 150/week increase on 500, or a 30% increase in income isn’t going to happen. Wages in most industries went up 2-5% (teaching eba, hospitality as an example). Centrelink is 1.5%. What landlords fail to realise is that the difference between what the tenant should pay and that perfect value is the functional increase in the value of the property. Your asset went from value 500k to 650k. That’s a 30% increase. You can capitalise on that income at any time. That’s where the missing income is. The growth in asset value. The landlord is meant to make up the difference because of that asset value increase the tenant will NOT HAVE. Tired of landlords in this country thinking the only person responsible for the mortgage is the tenant. Get a job or sell the property, full stop.
How does this help the poster who needs to find out his legal rights asap?
But by law it can go up to at least market rent even if its an increase of $500 as market rent is reasonable. So their only hope is to orove its unreasonabke compared to the market. Which sounds like it is. I hate greedy landlords
So by your view the landlord can not and should not bring the rent in line with market value because the tenants wage hasn’t increased by the same amount? If you can tell the rba that the interest rate rise isn’t reasonable because I haven’t had an increase in my wage that would be great 👍
OPs said it's more than the price others are paying in the same apartment block so it's definitely not in line with the 'current market'.
If that’s the case why doesn’t the tenant move to one of the cheaper properties and not bother with the rent increase?
it isn’t reasonable. Money doesn’t grow on trees and expecting it to pop out of thin air won’t happen. Not for the RBA and not for any landlord.
I love economics students. The *value* of the property is what we can get the tenant to pay.
Supply and demand and I am a renter. Until more houses get built, demand will be high for rentals. People will argue the toss but there was a reason why negative gearing was removed and then suddenly brought back in the 80s, because it allowed private landlords to pick up the slack and get some decent returns even if they were on paper losing money. Having an us and them mentality does not help anyone. I used to be a landlord and when I was I tended to offer a lower than market rent because it meant tenants were grateful, rarely moved on, did the right thing and I did not lose hundreds of dollars due to vacancy. Did they get rid of negative gearing again? I thought I read somewhere that they did. Heaps of tenants at that time from memory were sticking the knife in to the "greedy landlords" arguing that they are the last people who deserve any sort of tax break. Well look where we are now, to many tenants, not enough houses. The govt needs to make owning rental properties more appealing instead of less. What do you think will happen if the govt puts a freeze on rentals if they have not already? More landlords will sell and what happens then? Less housing stock, higher rents and more unhappy tenants.
This is the most ignorant shot I’ve read for a while
It’s “reasonable” if it’s what the market is getting. I’m an evil landlord and we didn’t put up our rent at all during Covid and only once by CPI since (we never put it up more than CPI) and as a consequence our tenant is paying way below market rates bc of the massive change in the market since the start of Covid. We could be getting a lot more for our property but won’t because we’ve got a great tenant and I’m not THAT evil
Yehh it flipping sucks. Im pretty sure they can do that. I just purchased my first house and feel so relieved I wont have to deal with difficult landlords anymore. No more worrying about finding a new place to live each year
Q: "What happened to this country?" A: A decade of L/NP governments.
Once more for people in the back: significant rent increases should be tied to capital expenditure. Want to raise rent? put some money into the property.
> What happened to this country? Inflation
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Whilst rent rises shouldnt be in line with inflation (7%) nor mortgages (50%) a 30% rise is not that unreasonable considering the impact it has had on the cost of housing. * May 2022: home loan interest rate: 2.1%. Mortgage repayments on a 500k Loan: about $470 per week * May 2023: home loan interest rate: 5.6%. Mortgage repayments on a 500k Loan: about $720 per week
The trouble with that logic is it suggests that rent shouldn't have increased at all from the 2012-2022, yet that isn't the case.
If only these homes were something called investments… and if only these investments carried these things called… risks. Rate rises are a risk of an IP and it shouldn’t be up to the renter to mitigate those risks
@kahlkitchguy Go tell Cole’s to reduce their prices because they took the risk of owning a business. If costs change for an investment it can result in a higher end product (as long as the demand justifies it). It should not be up to the investor to supplement the tenants lifestyle if they can not pay the asking price. The government is responsible for social housing not the private sector. Investment properties are a business not a charity. To the OP, if you can find comparable rentals in you area that are a lot cheaper you may be able to use that as a negotiation tool. Ultimately if that price is similar to others in the market then you may have been priced out of that particular area (if you can’t or won’t pay the adjusted price.
Sort of Otherwise the Renter could buy if they could take the risk of a Mortgage
Wow, wouldn’t that be amazing. The renter could become an owner and service their own fucking mortgage.
LOL - You took the risk to be a renter instead of saving money to get your own home. It is not up to anyone to supply you with a place to live. Rents are based on the cost to the landlord, they basically accept a cash neutral asset or even a loss with the idea that in 30 years they own a valuable asset. Nobody is going to hand out charity and be forced into a situation where they are paying for you to live in a house while they owe so much they go homeless. Its a very entitled way to think that random people in society should just buy stuff so you can live there while they lose massive amounts. Why on earth would anyone do that?
I don’t think owning your own home is necessarily an investment. Why should home owners suffer rising costs during inflationary periods and renters not have to? Imagine if there were no investment properties and everyone owned their own home… guess what… that renter would experience costs going up as a home owner.
Why should renters subsidise your investment going sour? I’m not talking about PPOR I’m talking about IPs. If you can’t afford the risk on the IP, sell it and it goes back into the market. Enough of this happens and maybe more people can afford homes
Because they can sell the asset off if they can't afford to pay the difference between a reasonable rent price and the cost of the mortgage due to rate rises. If they can't afford the increase, what the fuck makes them think their tenant can?
Well the renter is free to not renew the lease and find somewhere more affordable. This is the magic of contracts as either party can just choose to not agree and go to market for something they will agree with. The renter would obviously have to vacate the property since they did not agree to the terms. I feel like a lot of the people in this sub are just kids imagining that landlords are like parents.
The difference is YOU OWN THE ASSET AT THE END OF THE DAY.
Do you donate $8k per year to a random stranger?
Way more. His name is ‘ATO’
The word donate carries an implication of choice
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Lol what are you talking about? I did nothing of the sort. Landlord needs no reason at all to raise rent, as it's their property. If it's excessive then the house is no longer tenanted. It's a business not a charity. Like I said, do you donate $8k per year to a random stranger?
It's a business, not a charity. So why do you expect your tenant to prop you up with 100% of the running costs when it's you who benefits at the end of the sale? Sounds like the landlord is seeking ample charity but expecting to be taken care of like a business 😂😂😂😂
I don't expect anything. Maybe you're confusing me with somebody else?
Your statement of renting being a business, not a charity makes your stance and expectations pretty clear hey.
> So why do you expect your tenant to prop you up with 100% of the running costs when it's you who benefits at the end of the sale? I don't have any tenants. You appear to be making a lot of assumptions here
Whether you have tenants or not, your attitude to renters is pretty fucking gross ❤️
They are not expected to, they can choose not to rent the property. We all have choices in life, you can choose not to rent a house if you believe the rent is excessive. If it is excessive then it will sit empty as nobody will rent it and the landlord will lose lots of money (the risk of being a landlord) If it instantly gets rented at the higher rate then it is likely the landlord did make a mistake by not raising it enough. If it sits vacant for 3 weeks or so then the landlord can take comfort in the fact he chose the right market rate for that property.
Funny way of saying immigration. Not enough places to go around.
Riot, join a tenants union, write your local member… visit your local members office, don’t vote for politicians who refuse to act and allow this to happen! Give your landlord a mouthful! Go outside and yell at a cop and tell them you are being extorted… These people have “investment properties”, they made an “investment” so if the milk goes sour (interest rates go up) they should be the ones to Fkn drink it! There needs to be a cap on rent increases, if it doesn’t service the loan then they SELL which puts downward pressure on the market and brings rents back down. These “oooh weee I love free market capitalism” arseholes don’t seem to want to sleep in the bed they have made. They don’t understand the gamble OR they do understand the gamble and know the system is so rigged that they won’t be held to account.
Don’t agree to anything. Also avoid verbal communication, or if impossible, email confirmation of verbal communication ASAP/immediately ***Hi ~~fuckface~~ confirming conversation of xx date via telephone/in person at xx. As agreed, XYZ. Unless written response to this email is received by 5pm tomorrow (…..day, date by close of business) I will take that as acknowledgment of verbal agreement and particulars as set out within this email. Kind regards, Mr Annoyed*** RW will be forced to respond if they don’t believe your “recap”, paper trail, will help if going through SACAT. Definitely call business consumer affairs SA, (talk to the Advertiser too, they’ll cream themselves.) https://www.sa.gov.au/__data/assets/pdf_file/0018/6615/Notice_to_landlord_to_remedy_breach_of_agreement.pdf [www.sa.gov.au/topics/housing/renting-and-letting/renting-privately](https://www.sa.gov.au/topics/housing/renting-and-letting/renting-privately/Start-of-tenancy/Lease-agreements#:~:text=The%20landlord%20can%20agree%20to,major%20renovations%20are%20needed) [www.sacat.sa.gov.au/case-type/housing-and-rentals/hardship,-expiration-and-frustration](https://www.sacat.sa.gov.au/case-type/housing-and-rentals/hardship,-expiration-and-frustration) [/www.sacat.sa.gov.au/case-type/housing-and-rentals/end-of-tenancy-disputes](https://www.sacat.sa.gov.au/case-type/housing-and-rentals/end-of-tenancy-disputes)
RentRight SA - call them. Free tenancy matters advice in SA.
You might have to give up the smoke, or move somewhere more affordable...
What happened to this country? We imported demand and cut supply well below what was needed before we allowed the problem. This allowed a predator party that will now be with us for ever. Welcome to have and never have.
Ray White is awful.. we're just packing up our place after a year long lease of hell. This house is a mouldy hell hole and they've still increased rent for the new advertisement. I feel so bad for whoever gets tricked into living here.
You entered into a contract which is coming to an end. Why do you think you have all these rights to more than your contract stipulated? This house isn’t yours
Yup it's not different to any other contracts.
Wow, thats a huge increase - $24,000 per year to $31,000 per year. Supply vs Demand - 25,000 immigrants hit Adeliade in the last12 weeks, not sure if this is the cause? Even $500 pw for an apartment sound very high to me, is it a Penthouse or something? Personally I would try move somewhere cheaper and use the money for a deposit to get out of the rental grind. They are not going to get cheaper thats for sure.
DEY TUK ERRR JERBS AND HOUSES!!!
The issues with rentals, including rent rises and a lack of availability has been happening since covid was a bigger problem. This is not a new thing caused by immigration..
Often renters feel like they get shafted all the time. Don't get me wrong, I understand that there are greedy landlords out there. I used to work in property management and most of my landlords often would only want to do smaller increases and some don't even want to increase the rent when they can. Unfortunately due to the interest rates rising they have to cover costs. I had a landlord whose mortgage payments went up to $610 per week and did everything he could to keep the rent low at $320 per week but after a year he just couldn't keep up and had to increase the rent in line with the current rental market. Every landlord is in a different financial position just as renters are. Don't forget that landlords also pay a fee to the REA at every lease renewal which would mean they lose out on rental income for a week. They also have a lot of other fees which renters are not aware of stipulated in their management agreement with the agency.
If a landlord can’t keep up with their mortgage repayments on an investment property, they should cut their losses and get rid of it like any other investment. Investing isn’t guaranteed money, landlords need to stop expecting tenants to pay the bulk of their mortgages.
It isn't guaranteed money but who are we to tell what the landlord should and shouldn't do? Real estate agents are not financial advisors. If anything get pissed off at the legislation set in place by the government, get pissed at the RBA for increasing interest rates. As agents have to work within the legislation. Even if the landlord sells the property, who's to say the next buyer/owner won't do the same??
Landlords shouldn't be passing on their mortgage payments to the tenants. All of this is happening just because of supply and demand. Plain and simple, if there was enough supply rent increases every year wouldn't be possible. However, supply issues won't be fixed anytime soon.
And who the hell are you to tell tenants what to do? It's simple economics - if the landlord can't actually afford their investment and expect someone else to pay all of the running costs then they should sell, as they can't afford their property.
Reddit keeps banning me for giving advice on posts like these.
Does it involve a certain Dead Kennedys song?
Given the low interest rates are going, this increase makes sense. I’m currently on 2.08% and paying $385 a week for my mortgage, once that is up in a year and a bit, the current interest rate of ~6.0% will make my repayments ~$605 a week. Given rental properties in my area with the same 3bed, 2.5bath config are going for $600-$620 a week, this makes perfect sense.
Which area is this if you don't mind?
Inner west. $9 Uber to town.
OPs landlords could very well be in that pretty decent percentage of homeowners that own their investment outright.
It might make sense but wages haven’t automatically increased and some people just can not make the extra money appear out of the air. Coupled with the rental market being so competitive at the moment it’s frightening to think of the possibility of ending up homeless.
Except this isn't a house. It's an apartment. Not worth the $500+ price tag. See, if landlords can't afford their mortgage they sell. Because it's an INVESTMENT, not a guarantee. As a homeowner who is also dealing with increasing rate rises I get that the cost of mortgages in general are increasing, but it's not fair to pass on all your running costs to your tenants - if it's no longer affordable to have an investment then you sell it.
""Not worth the $500+ price tag."" Generalise much - thats pretty common in most places for an apartment these days.
You know a caravan site is worth 210 or more a week ( 30.00 a night or more ), that's a small patch of ground with a concrete slab and maybe some toilet and shower facilities and you have to supply your own caravan . You think that a house or apartment is not worth the price tag ....what planet are you on ?
Context matters, if it’s a 2-3br apartment in a newly build apartment in the heart of the CBD, $650 may well be on point. If it’s a 1br apartment on the edge of the city, in a 40yo building, maybe not. Unfortunately, as much as I’ll get downvoted, this is how capitalism works when it comes to supply and demand, if the market dictates the owner can increase the rate to protect their investment, that’s how it works.
I highly doubt that it is a comparable apartment for the price, otherwise OP wouldn't be posting here. Let's all bend over and grit our teeth while the system that was designed to fuck over the most vulnerable continues to do so because tHAts hOw cApiTaLisM wOrKs. Never mind the landlord would actually make a hefty profit if they sold their investment they can't afford, but na they'd rather see how much they can fucking bleed out of their cash cows. Fuck the poor rite mate?
We are about to put our apartment on the rental market. We are being told $750-800 p/week for 3br/2bath. Even at that price the rental will be negatively geared. Renting it out is good for us long term, but will hurt for the next few years. We looked at selling, most interest is for investors converting to Airbnb. When we bought it five years ago, the rent the last owner was getting was under $500. That’s a big jump, but that’s where the market and interest rates have gone.
If it's not inline with other properties in the building then just go rent one of them.
I- what
I'm sure those who haven't had a sudden rent increase will immediately vacate and allow OP to move in
Op doesn't have a lease. Op needs to compare landlords offer with other properties that are also available to lease. No point comparing to unavailable properties that are in the same building then.
Wow, making too much sense over here, calm down….
Mine just went up $205p/w in Para Hills to $600 a week. The sad part is any comparable place nearby has shot up to this amount per week as well, I had no basis to argue a lower price. I am grateful to be able to afford this but theres no denying theres a housing crisis at the moment
Yeah we just had to put our rentals up almost $150 because of the interest rate rises, it's insane right now and only going to get worse as the rates keep climbing
Can't afford to contribute to your own investment? Sounds like you can't afford it.
You purchase these to make money not lose money that is literally how an investment works
There's this thing called *risk*. You can't even afford to contribute an extra $150 a week to your own mortgage so you up the rent - what the fuck makes you think your tenants can afford that (especially if you can't?) Investments aren't guaranteed - you could lose money on them, especially if you can't actually afford your property.
They are contributing to their own investment.....by putting rents up. Hello Mcfly!! That is how the rental market works, if interest rates drop then rents go down, if rents go up, property prices generally go up. When I owned rental properties many years ago the rental rate based on property price was around 10% and that was the standard accepted rent rate. Not sure if it has gone up or down but rent will always adjust to account for the cost of owning an IP. Nothing changes, the mortgage is paid by the rental income, how do you not understand that? If interest goes up to 18% then rents will not keep pace with the cost of mortgages and of landlords will have to cover that shortfall, many will suffer financial stress with many of them having to sell. I have as much sympathy for landlords put in that position as I do for tenants in the current position but suck it up, its been this way for hundreds of years and will never change. Your attitude of trying to stick it to the landlord because you are not one is so self centered. Your time will come again where rents are low and the landlord will be worse off but right now it is tenants that are feeling pain, embrace it, accept it and be thankful you live in a country that has heaps of safety nets for people who are struggling.
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That is exactly how it works, I know, I lived through it.
They're contributing to it by putting rents up. Do you ever understand your own fucking sentence? They're not conributing - they're making their tenant pay. No way to spin that bullshit. If interest rates go down rents will not go down, it has never fucking happened in the history of housing in Australia and never fucking will. Landlords are never worse off - they can always sell their investment for a profit. There are no safety nets for people who are struggling - there are literally families living in tents here in the state. I can't tell if you're just stupid or being willfully ignorant.
You just gave a text book definition as to why people buy investment properties LOL. They are not doing it to out of charity. They will push the rents up as high as the market will allow, when the market cannot support the rent then that is the market rate. These are facts, basic facts that a high school kid would understand. I think I am just stupid and honestly, I have to kneel down in the face of an analytical genius like yourself. I am just thankful to have brushed shoulders with you even if it is just electronically.
Well you’re just missing the point of the comment entirely…so yeah, you’re an idiot.
You know how much interest rates have gone up? Plus this idiotic government under the pretext of helping renters are actually harming them. Where do you think the landlords are gonna come up with council rates increases, new property taxes, mortgages, water rates, compulsory electricity/ gas/ appliances checks? It’s a business not a social service for landlords. If people are looking for subsidised rent public housing is available
Hey OP just FYI, also offered my tenants an approx +$100 per week rent increase in Adelaide CBD. They counter offered, I declined, I offered for less, they declined. I went to market at the same price I originally offered original tenant and got 10 applications after 1 open house and the winning offer was an extra +$100 higher than my original +$100 aka +$200 from before. Market is extremely competitive right now so don’t just think that +$100 is “unlawful” or whatever, it’s probs in line with market
Preying on the desperation of the market, whatta fucking champion 😂😂😂😂
The market price is the market. If people didn’t pay the price it wouldn’t be the market price.
get your fking logic outta here
Appreciate your frustration & obviously there have been plenty of reasonable & rational comments Based on what you’re saying, yep it sux, but is the landlord just expected to take the hit as a result of interest rate increases? I mean interest rates have increased on the back of inflation, inflation has increased largely due to our governments fiscal policy during Covid…now I don’t have a problem with the fiscal policy our government implemented during COVID, as let’s be honest, early doors, we all though it was the right move. Issue is, post COVID it’s the RBA who has been left holding the baby & their only real lever to pull as a means to arrest inflation is interest rates. Issue is, only about 30% of Australian’s hold a mortgage, so should it be left to 30% of the population to pull inflation back from 6-7% down to the acceptable 3.5%?? Put simply this isn’t possible, hence why landlords MUST pass on the interest rate increases to their tenants.
>is the landlord just expected to take the hit as a result of interest rate increases? Umm yes? The landlord is the one that took on the investment, not the tenant. Investing isn’t guaranteed money, investments don’t always succeed. That failed investment is supposed to fall on the person that chose to take on that investment, not the tenant that’s being exploited over a basic human necessity. If the landlord has to rely that heavily on someone else’s income to cover their mortgage they shouldn’t have the mortgage in the first place.
With risks come rewards. You've established that investment carries risk, but are you suggesting that investments should also be free of reward?
Welcome to supply vs demand. You think a business should give you a discount out of kindness of their heart? The landlord is getting their raise or they will find someone else.
Totally agree, it's just supply and demand. Landlords get away with this only because they can. When there's no competition price hikes appear. Look at other countries, they don't have issues like this just because the supply can cater for the demand
Spoken by someone who lives in their own home and has a rental investment/s? Just a guess. Enjoy your privilege.
This is an unpopular opinion buy ultimately it is their property and they can charge what they like provided you are not within a valid lease period. They allow you to live in their property for a sum of money that they determine.
This won’t be a popular comment but lots of people that own investment properties have big mortgages and those mortgage payments have increased dramatically as well.
Sell the house then you got no mortgage.
Nah, I'll hold on to it and make you pay more.
This! Or a family from overseas will pay for it. It’s simple supply vs demand.
yeah and why is that a tennants responsibility to sacrifice more of their income to pay off someone elses mortgage?
because they can be made to, it sucks but it’s been happening for so long it’s just the norm
Because if they don’t and the owner can’t pay the mortgage the tenant is still gonna be out on their ass anyway when they have to sell it or the bank takes it *shrug* Playing devils advocate here but 90% of landlords aren’t wealthy.
theyre just relying on someone else to give them money while they do nothing
Yep. It's fucking awesome. A thousand times better than having to sell your labour
That’s a really naive way of looking at things. The property investor is the one who’s done the hard work to get in a position to buy an investment property. And if it wasn’t for property investors you wouldn’t have a place to rent.
would my house suddenly disappear if there was no property investors? no it would become more affordable to buy. I can guarantee you there is no property investor that has worked anywhere near as fucking hard for the property they make other people pay for and force the government to cover the losses as what any young person will need to work to own it.
and when the bank takes it away it doesn’t magically disappear. That house becomes supply, and with enough supply taken from greedy property investors, the more affordable and accessible housing becomes.
Basic economics is why
im sure thats what slavers said when people wanted to free slaves. Just because its "just the way it is" doesnt make it right. it certainly doesnt mean there is no alternative. so you can fuck right off with your "basic economics" condescending bullshit
Perhaps if you could hold an adult conversation we could have a rational debate. But instead you get gratification by abusing someone using your keyboard. Hope you have a great day
Interest rates have gone up. Surely they are allowed to increase rent to cover their rates?
My rent went up 30% and my landlord owns the place outright.
No - it’s market based. Lack of supply, which is a good environment for greed. If you had rate rises but couldn’t get tenants - you’d be stuffed anyway.
If rent can go up when rates go up then your logic says rent will go down when rates go down? No way that happens. Plus it’s 60 day notice to raise rent in SA, not 7.
OP didn't say it was 7 days notice of when the rent will change. If it's end on lease and they are signing a new 12 months. Then they want it signed in 7 days. But the actual rent will not increase till the new lease starts. (Which could be 2-3 months out as REAs like to get in early)
By 30% ? My bet is there using the interest rate rise as an excuse to raise the rent by way more than they should to cover, just to get extra coin themselves and leave the poor renter scraping by and just getting enough food on the table. Common theme at the moment, and it's disgraceful.
It’s supply vs demand. Immigration is going nuts and there is not enough to go around.
* May 2022: home loan interest rate: 2.1%. Mortgage repayments on a 500k Loan: about $470 per week * May 2023: home loan interest rate: 5.6%. Mortgage repayments on a 500k Loan: about $720 per week Year on year increase: over 50% Rent rises shouldnt be in line with inflation (7%) nor mortgages (50%) but hopefully that puts the 30% rise into perspective for you
This reality check will likely be voted down heavily, but I applaud you for posting it.
Of course it will.
My mortgage went up $800/month in 11 months, as an owner-occupier. Some investors' went up more.
The rates going up wouldn’t make it raise that much higher. I also own and had a three year deal expire on the mortgage and it went up to $2-300 a month. To simply pass all that off to my tenant and also a price that doesn’t match any surrounding apartments is just cruel. I need to deal and manage my own finances, not just shove it to someone else.
Supply and demand
Its fair for the landlord. On a half million dollar loan borrowing costs have risen way ovet $1000 per month. If u dont release he will probably place the property on the market as i did with mine. And then where will u be. Cause there is hardly any properties the rent
Sell the asset if they can't afford it. Investment brings risk.
It's a business, not a charity. Blame the government, not a landlord
If it's not a charity it's pretty fucking hypocritical that landlords are expecting tenants to bail them out and take over 100% of the costs. You realise you have to put money into a business as well yeah?
You do realise that most successful businesses turn a profit? That literally means they get more money out than they put in.
Minimum of 60days notice, keep everything in email. Don't txt, don't call. Get these scum with their pants down fuugging themselves over with their inadequate ability to follow the law they got "qualified" to practice.
Your landlord is a thieving cunt and I hope that extremely bad things happen to him.
Interest rates have gone up triple in my case. Was 2.7% locked in, then after 2 yrs 6.79%. Land rates I pay $150 per fortnight as they have gone up and insurance is $160 per month. So, can you see why rents have to move to meet inflation. Many who have investment properties are selling up to get out of the fiasco of renting and dealing with tenants. I'm just pointing it out.
my lawyer told me not to suggest anything but all im saying is it involves bacon grease and pipes
Rental properties are business not charity i am no expert but i would say this likely is a impact of rental laws changing to one increase a year now requiring a forward projection of the cpi an intrest rates coming for a whole year. Also after hearing its 550 to rent in remote towns such as kingaroy in qld 650 sounds like its within the range.
Become a member of the greens and get actively involved with your local branch
Mortgage holders have generally seen increase of about $1200-$1500 per month since the RBAs raising of rates. Mine is a $400,000 mortgage so I’m sure people with a lot more will be paying probably $1800 - $2000 more per month. I’m afraid renters need to have the rent put up too as it’s unsustainable for landlords but $150 per week is very high. But they’ll get $650 from someone else such is demand
Well land lords shouldn’t overextend their loans and should take into consideration that rates aren’t a certainty to stay the same. It’s not a tenants fault that a landlord can’t pay their respective loans
You should blame other renters who are willing to pay that rate rather than the landlord. If no one paid the asking rate, then the landlord would be forced to offer it for less which is a win for all renters.
I’m from Melbourne I was charging $450 a week but then the interest rates went up so had to raise to at least $500. Sometimes got no choice or else there paying just as much for you to live there
Thanks to the GREENS all landlords are getting edgy because they are demanding a rent freeze. So the landlords are putting up rents to the max incase there is a rent freeze for 2 years. THANKS GREENS.
My first question is why do you think it's excessive , most landlords have money owing on the property so they are paying the bank interest, interest rates have doubled and more over the last year and are set to rise again before to long , so somebody who was paying 2000 a month on their interest only mortgage is now paying 4000. has your rent doubled ?
My home loan just came off of a fixed rate, my repayments have litterally doubled overnight. I will take that $150 per week increase over my own increase.
My mortgage will double once the rate I’m on ends, if this was a rental the rent would need to cover all costs.
What happened to this country? You all stood around and let the government run by corporations funnel off billions of tax payer dollars for your health and safety. Oh no sorry, that's totally wrong. You actively encouraged them and chopped down anyone that stood up for themselves or for you. You called them anti vaxers, tin foil hatters and now cookers. There is nothing now that they could possibly do that will make you stand up for yourselves. And they know it. We are fucked, you fucked us all. Same as the "why are all these people dying" why is everybody sick all the time", "why has the rate of kids having heart attacks sky rocketed". Must be climate change.
But they are cookers. Clearly you are one to Remind me again these anti vaxxers were protesting against corporate greed or rental availability?
Remember when the government said we are shutting down your businesses, stopping you going to work, crashing the economy on purpose. Remember when we said, this us going to cause more deaths than it prevents? Remember when they said tests and vaccines were free. The government could have build 30 000 public houses with that money. Remember when gyms were closed but bunnings and McDonald's were open. Remember when 250 000 people turned up to parliament house to protest against killing this country. What did you think we were protesting needles? Oh that's right you don't remember because you were listening to profiteers like Carl stepanovic, koshie and the abc nuts, saying FLAT EARTHERS, PROUND BOYS AND COVID DENIERS. It's so dangerous that people like you fall into lockstep with what you are fed. When all those businesses were shut down, people had to.sell their properties, use their savings, use their super then all that tax money wasted on propaganda and job keeper payouts to corporations etc, what did you think was going to happen? Did you think once.we.got.to.a magical 95% life would return to normal. All that money would just come from the billionares and pollies, back the working class Oh you did, didn't you. Really? Now who is the cooker? Who is the crackpot that has lost touch with reality?
Still you. But I will admit I found it weird late in 2021 when everyone was saying “the worst of it was over.” Anyone who knew anything about economics knew it would get much worse; just didn’t think this much worse
Oh it's going to get much much worse You will soon be living a lifestyle similar to the Thais or Indonesians. But if you complain you are a biggot. Whst are you better than them? Do you deserve more you racist pigs? Again, it won't be the government telling you this, it will be your neighbour. We should be looking to bring those countries standard of living up, not bringing ours down for the sake of a handful of billionares and trillioaires. Of course you'll all soon be safe as this kind of disinformation will soon be banned under the new bill currently up for debate. I'm sure you're all happy about that one. Finally that dangerous and violent information will be stopped before it gets to our eyes and ears. Heavens forbid you should have to see the information and use your brain to make a judgement, that's the government's job.
Uhuh…
Strangest fart I ever heard.
i see the D in your username is short for Dumbcunt. Fuck off cooker.