Changes to residential tenancies currently progressing through Parliament will enable the government to, once again, swiftly make it legal for rent to not be paid and will remove the ability for inspections to occur when another wave of COVID-19 crashes down on home turf.
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The speech accompanying the legislation also highlights that landlords will soon be forced to accept a repayment plan, but is deafeningly silent on the fact that the legislation was knowing left open to abuse. And the omissions do not stop there. There is no thank you to the hundreds of landlords who have been hit with the full force by the government's decision to exclusively target them as the only party who does not have to be paid for the service they provide.
No appreciation for the many landlords who are still owed thousands in outstanding rent even after accessing government schemes to pay rent on tenants' behalf. No apologies for the foreseeable abuse that has occurred or for the damage resulting from an end to inspections and stampede of dog adoptions. It is widely accepted that it is good practice to learn from your mistake. The judgement the government has exercised has been atrociously short-sighted and unfair.
Now the government has laid its cards on the table, it is up to landlords to decide where to from here as, despite the government's view that they will use private rentals as substitutes for their lack of social housing whenever it suits them, landlords still own the property.
Landlords will now be selling to cashed up mainlanders, ending leases, leaving properties empty, considering short-stay, and raising rents to make up for lost payment, damage costs, and insurance and land tax hikes, especially especially now the government has shown that its disregard for landlords as people was not an oversight during a stressful time when quick action was needed, but rather what they consider to be fair and reasonable action. Let me be clear - landlords to do not agree.
Landlords are first to be hit, but it is a trifecta of loss. Tenants lose as fewer private rentals and higher expenses means higher rents. Landlords will also avoid renting to those with low income stability, such visa holders and those in hospitality and tourism. The government will see demand on income support and social housing will increase dramatically as private rentals disappear.
It does not need to be this way. The government should take on the responsibility for paying rent when a tenant genuinely cannot in extreme events like COVID-19. This would bring housing and income security, boost market confidence, and make the huge debts that tenants will carry much more manageable as it would be the government being paid back, not your local plumber, aged care worker, or hairdresser who happens to own an investment property.
- Louise Elliot is the president of the Tasmanian Residential Rental Property Owners Association.
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