Why some landlords are renting out their properties below the market value

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Why some landlords are renting out their properties below the market value | sopphie

But this two-bedroom unit in Pascoe Vale South, with a courtyard, garage and ample living space, was different.

“A 10 per cent reduction is not going to make a big material difference to my life, but it will to someone who is renting.” In Melbourne, the agency manages about 70 affordable properties, which go to renters on low to moderate incomes. While HomeGround’s model does not help increase the stock of available properties for aspiring home owners, it does help people who have been entrenched in the rental system. Clients also have the option of offering their property as social housing or paying the agency to manage it at full market rent, with profits going to its partner homelessness organisation Launch Housing.

But he said when properties went back on the market, it was normal for rents to increase in line with their current value.Credit:In Victoria and NSW, rent rises can occur once a year. Tenants have a right to challenge an increase if they believe it is excessive, but there are no limits on how much rent can increase.

“It’s really tough out there,” Farouque said. “With other cost of living pressures, escalating rents are really challenging for renters on low to middle incomes.”“We encourage landlords to be aware of the stressors that renters are facing. The value of a good tenant who looks after the property is worth its weight in gold.”

 

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Why some landlords are renting out their properties below the market valueThere is a rental crisis in Melbourne and Sydney with costs soaring and vacancies at record lows, but there is a rare group of property investors choosing to receive less income from their tenants | Report by sopphie sopphie Lol what a steaming stinking pile of self-righteous BS! You risk your capital you want as much of a return as you can get!
Source: theage - 🏆 8. / 77 Read more »