Who Vic landlords blame for rental crisis

The grievances of landlords, real estate agencies and property management companies were heard in Victoria’s parliament on Tuesday as part of an inquiry into the state’s rental and housing affordability crisis, led by the Legislative Council’s Legal and Social Issues Committee. RELATED: Victorians share first first-hand rental horror storiesMould, cracked walls: State of rental homes revealedWhy first-home buyer still believes in great Australian dreamREA Group CEO Owen Wilson is joined by Launch Housing CEO Bevan Warner to discuss the current homelessness crisis in Australia, and what needs to be done to address it.In regards to his experience dealing with property managers and their knowledge of rental laws and regulations, landlord Ange Kenos said some property managers looked as though they were “barely out of high school.”“I’ve got to ask, how much experience do they have? How much knowledge and awareness do they have if they’ve just joined the industry?” Mr Kenos asked. Harcourts Moe-Newborough senior property manager Jessica Barr said “very low” wages were to blame.“So you’ve got to have people who are either incredibly passionate, I would put myself and probably Carmen in that bracket, or people who are young and need a job,” Ms Barr said. Wyndham Property Management director Carmen Littley echoed Ms Barr’s statement that low wages led to young, inexperienced employees being hired.“You find agents who are employing really young staff; half of them haven’t left home,” Ms Littley said. “They don’t know much about property at all because they’ve never lived independently themselves and they haven’t got an eye for detail when walking through the property.”The hearing also found landlords are divided over whether they had a right to a profit on their investment.Rentvestor Lachlan Simpson said he didn’t feel he had that right as no other investment type did such as the stock market. “You’ll get a positive return some years, hopefully most years,” Mr Simpson said. “But in reality, there will be some years when unfortunately, be it market forces or repairs required, where that’s not going to be possible.”However, landlord Geoffrey Tonks, who owns six rental properties, said he and his wife expected to get a return on an annual basis that justified the investment of their money. “We expect to get a return on our rentals,” Mr Tonks said. “The agents give us the indication of what is the correct market rate for that property for rental and our rental increases are according to the regulations and that’s all.” In his public submission, Mr Simpson said he felt rental agents and the real estate industry were the greatest factor in rent rises and the process of price setting was “opaque” and that as they collected a percentage of the rent they had an interest in raising rents.Both Ms Littely and Ms Barr when asked whether real estate agencies and property managers were disincentivised to make housing affordable declined to answer. Yesterday’s hearing followed tenant horror stories revealed in late August.Further hearings continue on October 10. Sign up to the Herald Sun Weekly Real Estate Update. Click here to get the latest Victorian property market news delivered direct to your inbox.MORE: Australia turns on ‘revolting’ two Block couples101-offer auction battle between 11 buyers shocks crowd‘Slim pickings’: Families struggle to escape unitssarsh.petty@news.com.au Via news.com.au — Australia’s leading news site https://www.news.com.au