In my years as a landlord I never had much property damage from tenants, though I had to paint out graffiti a bit. The main negative was having to replace carpet after a tenant's pet had shat on it. You can't get the smell out and no new tenant will take a stinking property. I got so I bought carpet by the roll.
But dealing with difficult and dishonest tenants eventually got too much for me so I sold out and put my money into blue-chip shares on the stockmarket, which worked well with no hassles
Uncertainty about tenancy laws and the ‘lucky dip’ search for tenants who treat a property with respect has led to landlord Steve Allthorpe selling two rental homes in the middle of a rental crisis.
From replacing carpets to repairing walls, the damage caused by one of the tenants has left the plumber thousands out of dollars out of pocket, he said.
Besides having to restore a property, the tenants were also $1400 behind in their rent when they departed, leaving the $2200 bond to only partially cover expenses, he said.
“They were behind in their rent and on top of that you miss out on rent while you’re repairing the property so it starts to mount up,” Mr Allthorpe said.
“There was $2000 just spent on new carpet and there needed to be extensive cleaning and they were only there 18 months.”
There’s also the additional burden of paying about $3,000 a year in land tax, he said.
Unless investors purchase either the Toomey St, Chermside West property and or another house in Geebung, with both being offered for private sale, it will be two fewer houses for rent in Brisbane.
Mr Allthorpe’s decision to sell does not surprise Real Estate Institute of Queensland CEO Antonia Mercorella who says rental tenancy laws overhaul are pushing investors away instead of attracting them in the middle of a housing crisis.
“You need laws that protect tenants, but we have been saying for a long time you need fair, balanced legislation or you drive investors away and couple that with the announcement of land tax reforms,” she said.
“This is a government that continually punishes property owners who do the heavy lifting when it comes housing Queenslanders.”
REIQ CEO Antonia Mercorella says the government needs to be mindful of rental tenancy law changes driving landlords away. Picture:
Vacancy rates were at 1 per cent across Greater Brisbane and also across the state during the December quarter, according to the REIQ.
A healthy rental vacancy rate is between 2.6-3.5 per cent.
Furthermore, new government rental laws that provide further protection for tenants and unchecked pet ownership were tipping points in deciding to sell the house, Mr Allthorpe said.
“The new laws basically do not allow owners to stop a tenant from having pets, and I love pets and I have a dog, but some of the damage I had to repair was caused by pets,” he said.
“It’s not worth the stress and the hassle, you’re better off finding another way to invest