Search

"Out-of-touch" Project stars slammed over clash with renter advocate

Social media users have slammed The Project hosts, following their recent interview with a renter advocate who encourages Aussies struggling with the housing crisis to squat in empty homes. Jordan van den Berg, founder of the S*** Rentals website shared a video over the weekend outside a rundown house in Chadstone, Melbourne, saying: “Are you sick of rich people hoarding empty houses during a housing crisis? I know I am." “Here’s how you can do something about it.” He then encouraged people to submit information on empty homes in their suburbs via a form on his website, which he plans to promote on his socials so those struggling to find a home could squat in them. “Fun fact – squatting in Australia is not necessarily illegal, which is the best type of legal, especially if the front door doesn’t actually lock," he said. On Monday, he appeared on The Project to talk about his controversial plans, and was grilled by the show's hosts. “I know we’re in a pretty serious housing crisis, but do you really think encouraging people to squat in private properties is the way to fix it?" asked co-host Sarah Harris. “Let me answer your question by asking you a question. Do you think it’s right we have thousands of vacant, abandoned homes while we have people living on the street?” van de Berg replied. Harris said she didn’t and asked whether the solving the housing crisis should be focused on policy instead. Later in the interview, panellist Steve Price casted his doubts on whether there actually were a lot of vacant homes, but van de Berg replied that he'd received over 300 submissions from Aussies about empty homes in their suburbs. van de Berg also said that desperate people are even squatting in abandoned properties, and added: “If someone needs a house, they can reach out to me and I’ll send them [details about] an empty home." Harris was shocked that people would “basically camp out in abandoned houses with no power" which van den Berg argued that “camping out inside” was likely better than sleeping on the streets or in a park. Co-host Waleed Aly then asked whether van de Berg was encouraging people to break the law, but he pointed out that squatting – done properly – isn’t technically illegal. The interview has been slammed on social media, with Writer and comedian John Delmenico posting on X: “Watching the rich out-of-touch panel on the Project realise in real time that not everyone is rich is so bizarre. "Especially the part where Pingers has to explain that being in a house is safer than sleeping on the street. How do they host the news with no connection to reality?” Others agreed mocking the panellists’ shock that “shelter without electricity is better than no shelter with no electricity”. “She was laughing at the fact that ppl would camp out in abandoned houses with no power/water, until he put her in her place by reminding her they’re better off camping under shelter than outside. Mic drop moment," one wrote. “Homelessness exists … it’s quite a big problem actually," another added. However, a few others agreed with the Project hosts. “Encouraging people to squat, who does he think he is?" one wrote. “He thinks he’s doing a good thing, but he’s given absolutely no critical thought to the implications of encouraging people to take over ‘empty homes’," another added. Leo Patterson Ross, chief executive of the Tenants Union of NSW, said that van den Berg was “drawing attention to issues that government should be acting on”. “In the middle of a housing crisis with growing levels of homelessness, we should be looking to ensure homes are not left vacant,” Patterson Ross said. “If a person leaves a property unattended and empty for 12 years, then I think many of us would agree it seems fair that the community can reclaim usage to provide a home, whether that be individuals or government.” Image: The Project

Legal

Stay or go? Most older Australians want to retire where they are, but renters don’t always get a choice

<a href="https://theconversation.com/profiles/christopher-phelps-378137">Christopher Phelps</a>, <a href="https://theconversation.com/institutions/curtin-university-873">Curtin University</a>; <a href="https://theconversation.com/profiles/rachel-ong-viforj-113482">Rachel Ong ViforJ</a>, <a href="https://theconversation.com/institutions/curtin-university-873">Curtin University</a>, and <a href="https://theconversation.com/profiles/william-clark-1488932">William Clark</a>, <a href="https://theconversation.com/institutions/university-of-california-los-angeles-1301">University of California, Los Angeles</a> As Australia’s population gets older, more people are confronted with a choice: retire where they are or seek new horizons elsewhere. Choosing to grow old in your existing home or neighbourhood is known as “ageing in place”. It enables older people to stay connected to their community and maintain familiarity with their surroundings. For many, the decision to “age in place” will be tied to their connection to the family home. But for many, secure and affordable housing is increasingly <a href="https://theconversation.com/ageing-in-a-housing-crisis-growing-numbers-of-older-australians-are-facing-a-bleak-future-209237">beyond reach</a>. This choice may then be impeded by a lack of suitable accommodation in their current or desired neighbourhoods. Our recently published <a href="https://doi.org/10.1177/01640275231209683">study</a> asks what motivates older homeowners and renters to age in place or relocate, and what factors disrupt these preferences. It suggests older renters are often not given a fair choice. <h2>Most older Australians want to age in place</h2> Having the option to age in place enables older people to retain autonomy over their lifestyles and identity, promoting emotional wellbeing. Using 20 years of data from the government-funded Household, Income and Labour Dynamics in Australia (HILDA) survey, we tracked the preferences of Australians aged 55 and over. Encouragingly, most older Australians are already where they want to be. Two-thirds (67%) of respondents strongly preferred to stay in their current neighbourhood, and an additional one-fifth (19%) had a moderate preference to stay. Only 6% showed a moderate or strong desire to leave. Ageing in place is then the natural choice for a vast majority of older Australians. <iframe id="s3LTM" class="tc-infographic-datawrapper" style="border: none;" src="https://datawrapper.dwcdn.net/s3LTM/1/" width="100%" height="400px" frameborder="0"></iframe> Our study highlights several motivations for people to stay put as they retire. For homeowners, family ties matter. Owners with children residing nearby were around one and a half times more likely to have a higher preference to stay. Older owners might then have a reason to call on their substantial <a href="https://theconversation.com/the-housing-wealth-gap-between-older-and-younger-australians-has-widened-alarmingly-in-the-past-30-years-heres-why-197027">housing wealth</a> and keep their children nearby via the <a href="https://360info.org/how-to-help-the-young-buy-a-home/">“bank of mum and dad”</a>. For renters, how long they stay is important. Those renting their home for 10 years or more were 1.7 times more likely to have a higher preference to stay than short-term renters. <h2>Renters face the most disruption</h2> The survey enabled us to follow where older people lived a year after they provided their preferences. This helped us gauge how often they turned their desires into reality. The chart below indicates that private renters face greater obstacles to ageing in place. Around one in 10 private renters that desired to age in place were disrupted – they wanted to stay in their neighbourhood but didn’t. This suggests they moved out of their neighbourhood involuntarily. Only 2% of homeowners and social renters experienced the same disruption. However, for those in these tenures that did not desire to age in place, involuntary immobility was a greater concern. Only 15% of those that wanted to leave succeeded, leaving the vast majority “stuck in place”. <iframe id="IlliV" class="tc-infographic-datawrapper" style="border: none;" src="https://datawrapper.dwcdn.net/IlliV/1/" width="100%" height="400px" frameborder="0"></iframe> The private rental market is the least secure of tenures, and so private tenants are often exposed to involuntary moves. Australia’s private rental system is lightly regulated compared to many other countries, creating tenure insecurity concerns. On the other hand, social renters were particularly susceptible to involuntary immobility. Social housing is scarce in Australia and subject to <a href="https://theconversation.com/its-soul-destroying-how-people-on-a-housing-wait-list-of-175-000-describe-their-years-of-waiting-210705">lengthy waiting lists</a>. A neighbourhood move often requires transferring to the less affordable and less secure private rental housing. Even after considering financial status, social renters were four times as likely to be stuck as compared to private renters. Social tenants are strongly deterred from moving in the current system. <h2>How can we support older Australians’ preferences?</h2> Our study exposes some barriers in the housing system that hinder people from being able to age in place, or move when they want to. Clearly, older renters enjoy fewer protections against disruptions to their preferences to age in place than older owners. For private renters, tenure insecurity in the <a href="https://theconversation.com/insecure-renting-ages-you-faster-than-owning-a-home-unemployment-or-obesity-better-housing-policy-can-change-this-216364">private rental sector</a> is a key reform priority. This can be achieved through stronger regulation that improves tenants’ rights. For example, more states could adopt <a href="https://theconversation.com/how-5-key-tenancy-reforms-are-affecting-renters-and-landlords-around-australia-187779?utm_source=twitter&utm_medium=bylinetwitterbutton">recent regulatory rental reforms</a> that support the rights of pet owners and protect against no-grounds evictions. Large numbers of older private renters also face severe <a href="https://www.oldertenants.org.au/publications/ageing-in-a-housing-crisis-older-peoples-housing-insecurity-homelessness-in-australia">rental stress</a>, which may force them to move from their preferred neighbourhood. <a href="https://theconversation.com/1-billion-per-year-or-less-could-halve-rental-housing-stress-146397">Commonwealth rent assistance reform</a> would alleviate some of this stress through an increase in rates and better targeting. An increase in the supply of social housing would play an important role in improving both tenure security and housing affordability. Older social renters enjoy fewer obstacles to ageing in place than older private renters. However, if social renters want to move into the private rental market to relocate, they face difficulty securing accommodation. This will likely discourage moves as it would require sacrificing the tenure security offered by social housing. However, policy initiatives that improve the <a href="https://www.ahuri.edu.au/sites/default/files/migration/documents/PES-358-Lessons-from-public-housing-urban-renewal-evaluation.pdf">quality of the public housing stock</a> can reduce feelings of being stuck. As <a href="https://www.aihw.gov.au/reports/australias-welfare/home-ownership-and-housing-tenure">homeownership rates decline</a> both among young people and those nearing retirement, we can expect the population of older renters to grow. Overall, our findings support a strong case for policy reform in the rental sectors to address the needs and preferences of older renters.<img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/218024/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/christopher-phelps-378137">Christopher Phelps</a>, Research Fellow, School of Accounting, Economics and Finance, <a href="https://theconversation.com/institutions/curtin-university-873">Curtin University</a>; <a href="https://theconversation.com/profiles/rachel-ong-viforj-113482">Rachel Ong ViforJ</a>, ARC Future Fellow & Professor of Economics, <a href="https://theconversation.com/institutions/curtin-university-873">Curtin University</a>, and <a href="https://theconversation.com/profiles/william-clark-1488932">William Clark</a>, Research Professor of Geography, <a href="https://theconversation.com/institutions/university-of-california-los-angeles-1301">University of California, Los Angeles</a> Image credits: Shutterstock This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/stay-or-go-most-older-australians-want-to-retire-where-they-are-but-renters-dont-always-get-a-choice-218024">original article</a>.

Retirement Income

Homeowners often feel better about life than renters, but not always – whether you are mortgaged matters

<a href="https://theconversation.com/profiles/rachel-ong-viforj-113482">Rachel Ong ViforJ</a>, <a href="https://theconversation.com/institutions/curtin-university-873">Curtin University</a>; <a href="https://theconversation.com/profiles/hiroaki-suenaga-1477343">Hiroaki Suenaga</a>, <a href="https://theconversation.com/institutions/curtin-university-873">Curtin University</a>, and <a href="https://theconversation.com/profiles/ryan-brierty-1477346">Ryan Brierty</a>, <a href="https://theconversation.com/institutions/curtin-university-873">Curtin University</a> Homeownership has long been thought of as the <a href="https://www.abc.net.au/news/2017-08-23/why-australians-are-obsessed-with-owning-property/8830976">great Australian dream</a>. For individuals, it’s seen as the path to adulthood and prosperity. For the nation, it’s seen as a cornerstone of economic and social policy. Implicit in this is the assumption that owning a home rather than renting one makes people better off. It’s an assumption we are now able to examine using data from the government-funded <a href="https://melbourneinstitute.unimelb.edu.au/hilda">Household, Income and Labour Dynamics in Australia</a> (HILDA) survey, which for two decades has asked questions both about homeownership and satisfaction with life. The <a href="https://melbourneinstitute.unimelb.edu.au/__data/assets/pdf_file/0007/4694137/ContinuingPersonQuestionnaireW23M.pdf">overarching question</a> asks "all things considered, how satisfied are you with your life? Pick a number between 0 and 10 to indicate how satisfied you are". We also looked at people’s satisfaction with their financial situation, their home and the neighbourhood in which they live. In a study published in the journal <a href="https://journals.sagepub.com/doi/10.1177/00420980231190479">Urban Studies</a>, we linked those answers to home ownership and characteristics including age and income. As expected, we found homeowners were generally more satisfied with their lives than renters. But we also find the extent to which they were more satisfied depended on whether or not they were still paying off a mortgage. <h2>Mortgaged homeowners about as satisfied as renters</h2> Outright home owners were 1.5 times as likely to report high overall satisfaction as renters. But home owners still paying off a mortgage were only a little more likely to feel high overall satisfaction. Similarly, outright owners were 2.3 times as likely to report high financial satisfaction as renters – but mortgaged owners were only 1.1 times as likely. When it comes to satisfaction with their home and neighbourhood, the differences were less extreme. Outright home owners were 3.1 times as likely to report high satisfaction with their home as renters, while mortgaged owners were 2.8 times as likely. Outright owners were 1.6 times as likely to report high satisfaction with their neighbourhood as renters, and mortgaged owners 1.4 times as likely. The results also varied with age and income. <hr /> <iframe id="hK9Ua" class="tc-infographic-datawrapper" style="border: none;" src="https://datawrapper.dwcdn.net/hK9Ua/3/" width="100%" height="400px" frameborder="0"></iframe> <hr /> As shown in the graph above, outright owners were more likely to report high financial satisfaction than renters across almost the entire age range. But mortgaged owners only showed a demonstrably greater financial satisfaction than renters between the ages of 25 and 50. Beyond age 50, the existence of a mortgage debt burden appeared to cancel out any boost to financial satisfaction from homeownership. This potentially reflects the growing financial stress of making mortgage payments as retirement approaches. <hr /> <iframe id="f2GSl" class="tc-infographic-datawrapper" style="border: none;" src="https://datawrapper.dwcdn.net/f2GSl/3/" width="100%" height="400px" frameborder="0"></iframe> <hr /> By income, mortgaged owners reported experiencing more financial satisfaction compared to renters the more they earned between A$80,000 and A$240,000. Outright owners experienced more financial satisfaction than renters up to A$320,000. Beyond these income levels, owners did not have greater financial satisfaction than renters, perhaps because high-earning renters have other sources of financial satisfaction. <h2>How satisfied people feel beyond 60</h2> In other respects, outright owners and mortgaged homeowners showed similar patterns, becoming more satisfied with their homes relative to renters the more they age up – until the age of 60. That’s when their satisfaction relative to renters declined, as illustrated below. This decline might reflect the growing physical burden of maintaining an owned home as people age. <hr /> <iframe id="oLrHz" class="tc-infographic-datawrapper" style="border: none;" src="https://datawrapper.dwcdn.net/oLrHz/2/" width="100%" height="400px" frameborder="0"></iframe> <hr /> Our study has important implications. One is that age matters. Although older people consistently express a desire to <a href="https://www.ahuri.edu.au/analysis/brief/whats-needed-make-ageing-place-work-older-australians">age in place</a>, we found satisfaction among those who owned vs rented their home declined beyond age 60. This suggests better integration between housing and care is critical to support people ageing in place. Another implication is that as low-income owners are more reliant on their homes as a source of relative financial satisfaction than high earners, they are <a href="https://www.cambridge.org/core/journals/journal-of-social-policy/article/housing-equity-withdrawal-perceptions-of-obstacles-among-older-australian-home-owners-and-associated-service-providers/268F54A8EAA1E9ECA118E243505AA9FD">more exposed</a> in times of crisis. They may face the risk of being forced to sell suddenly with little time to consider the consequences. And another implication is as the relative financial satisfaction of mortgage holders disappears after the age of 50, and as more of us approach retirement with mortgages intact, more of us will either <a href="https://journals.sagepub.com/doi/10.1177/00420980211026578">postpone retirement</a> or become dissatisfied. Our findings suggest the extension of mortgage debt into later life should be discouraged if the benefits of the Australian dream are to be preserved.<img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/215147/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/rachel-ong-viforj-113482">Rachel Ong ViforJ</a>, ARC Future Fellow & Professor of Economics, <a href="https://theconversation.com/institutions/curtin-university-873">Curtin University</a>; <a href="https://theconversation.com/profiles/hiroaki-suenaga-1477343">Hiroaki Suenaga</a>, Senior Lecturer School of Accounting, Economics and Finance, <a href="https://theconversation.com/institutions/curtin-university-873">Curtin University</a>, and <a href="https://theconversation.com/profiles/ryan-brierty-1477346">Ryan Brierty</a>, PhD candidate, School of Accounting, Economics and Finance, <a href="https://theconversation.com/institutions/curtin-university-873">Curtin University</a> Image credits: Getty Images This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/homeowners-often-feel-better-about-life-than-renters-but-not-always-whether-you-are-mortgaged-matters-215147">original article</a>.

Home & Garden

What are your rights as an Airbnb renter in Australia? A law expert answers 6 common questions

<a href="https://theconversation.com/profiles/mark-giancaspro-182268">Mark Giancaspro</a>, <a href="https://theconversation.com/institutions/university-of-adelaide-1119">University of Adelaide</a> Airbnb has revolutionised the short-stay industry. Launched in 2008, it now eclipses the world’s biggest hotel chains. In Australia alone there are about <a href="https://www.abc.net.au/news/2022-05-15/short-stay-rentals-airbnb-impact-on-australian-property-market/101019726">100,000 listed properties</a>. But in dealing with both a digital platform and a private owner (or “host”, in Airbnb-speak), your legal rights as a renter (or “guest”) can be unclear – at least without reading lengthy terms and conditions. This article answers six very common questions about using Airbnb in Australia. Please note that your legal rights may differ in other countries. Even if Airbnb’s terms and conditions are near identical – and they generally are – there may be differences in consumer laws. <h2>What if an Airbnb property doesn’t match its description?</h2> Airbnb’s <a href="https://www.airbnb.com.au/help/article/2908#6">terms and conditions</a> require the host to provide “complete and accurate information” about their property. Content, including photos, must be “up-to-date and accurate at all times”. Airbnb’s <a href="https://www.airbnb.com.au/help/article/2895/">Host Ground Rules</a> state that listings “should accurately describe the home and reflect the features and amenities that will be available”. If a property does not match its description or photos, <a href="https://www.airbnb.com.au/d/anz-prohost-resource-centre-support">report this to Airbnb</a>. False advertising will also likely breach the Australian Consumer Law, which prohibits (Section 18) commercial conduct that is misleading or deceptive or is likely to mislead or deceive. Report to the <a href="https://www.accc.gov.au/about-us/contact-us/report-a-consumer-issue">Australian Competition and Consumer Commission</a> here. There are no specific provisions to claim a refund or a discount for misleading listings. Your only recourse would seem be to initiate the cancellation policy that applies to your booking. <h2>So when can I get a refund?</h2> If you cancel your booking or leave the property early, your refund rights are determined by your <a href="https://www.airbnb.com.au/help/article/149">cancellation policy</a> (see “show trip details”). There are various <a href="https://www.airbnb.com.au/help/article/475">policies</a> (from which a host selects when listing). Most allow full refunds if you cancel one to five days prior to check-in, while others require up to 30 days’ notice or only provide partial refunds. If the host cancels on you, they <a href="https://www.airbnb.com.au/help/article/990">may be penalised</a> by Airbnb. <h2>Can an Airbnb host impose harsh and unreasonable ‘house rules’?</h2> If an owner wants to make rules against visitors without their permission or how many times you can use the washing machine, they generally can. When you rent a property through Airbnb, you are entering into a private agreement with the owner. Under contract law, they can stipulate whatever terms they like, so long as those rules aren’t illegal. What Australian Consumer Law does prohibit are <a href="https://www.accc.gov.au/business/selling-products-and-services/contracts#toc-unfair-terms-in-standard-form-contracts-">unfair terms</a> in standard form “consumer contracts” – which an Airbnb contract likely qualifies as. An unfair term is one that: <ul> <li>causes a significant imbalance in your rights and obligations</li> <li>is not reasonably necessary to protect the host’s interests</li> <li>would cause you detriment (financial or otherwise) if it was enforced.</li> </ul> The problem is that you will need to sue the host (that is, initiate civil litigation) to prove this. Your best option is to carefully review the rules before you confirm your reservation. Once you confirm, you are legally agreeing to all of the host’s terms whether you’ve read and understood them or not. If you disagree with a rule, ask the host to waive or amend it. If they won’t budge, your choice is to book or not. <h2>What are the boundaries for an Airbnb host/owner?</h2> Hosts are <a href="https://www.airbnb.com.au/help/article/3057">required</a> to ensure every property is secure and safe. Airbnb’s Community Policy states properties must be properly lockable and free of hazards, and hosts must be responsive and willing to answer guest queries within a reasonable time. <a href="https://www.airbnb.com.au/help/article/3060?_set_bev_on_new_domain=1691395791_NmY1ZDNmZjQxZjQy">According to Airbnb</a>, a host cannot physically intrude or interfere with your stay. They can only re-enter their property (or a guest’s room in a shared stay) if there is an emergency or with express permission. In a shared stay, the host must not enter the bathrooms or guest bedrooms when the guests are inside. The host is also forbidden from sharing private details, photos, or videos of you without consent. Where your safety is threatened, you should contact law enforcement and notify Airbnb. If you decide to leave, you may be entitled to a partial refund. Your rights depend on the cancellation policy applying to your booking (discussed further below). <h2>If I am injured in or get sick because of an Airbnb property, can I claim compensation?</h2> <a href="https://www.airbnb.com.au/help/article/2908#4.2">Clause 4.2</a> of Airbnb’s terms and conditions states that, by staying at a listed property, you acknowledge and “freely and willfully” accept the risk of “illness, bodily injury, disability, or death”. Further, clause 19 contains a broad disclaimer absolving Airbnb of any liability for “personal or bodily injury or emotional distress” incurred in using its services. Clause 20 also contains an indemnity preventing you from making any claim against Airbnb in relation to your stay. This gives Airbnb legal protection. But you may make a claim against the host. The first step would be to formally write to the host outlining your claim. Airbnb may also assist with any disputes. If this fails, you can sue the host but whether the cost and effort is worth it will depend on the extent of your injury or illness. If you do make any claim against the host, they will likely rely on Airbnb’s insurance. Every Airbnb host is insured up to US$1 million (about A$1.5 million) through Airbnb’s <a href="https://www.airbnb.com.au/help/article/3145">Host Liability Insurance Programme</a>. This covers any bodily injuries incurred by guests (or others) and damage to or theft of any property belonging to a guest (or others). There are some exceptions to what Airbnb’s insurance will cover, such as intentional violence, mould and communicable disease. If you want compensation for something the host is personally liable for, you are more likely to have to take legal action, using a lawyer. Consider the costs carefully. <h2>What’s the maximum cleaning/damages fee an Airbnb host can charge?</h2> Cleaning fees are <a href="https://www.airbnb.com.au/help/article/2812">set by the host</a>. Airbnb provides a <a href="https://www.airbnb.com.au/help/article/3171">pricing tool</a> to help them calculate a reasonable fee – generally <a href="https://www.igms.com/airbnb-cleaning-fee/">based on size and facilities</a> – but there is no maximum, presumably on the rationale that market forces (and reviews) will deter hosts from charging too much. Nor is there a maximum damages fee. You can formally <a href="https://www.airbnb.com.au/d/anz-prohost-resource-centre-support">dispute the amount</a> with Airbnb, which will determine if it is reasonable, relying on information provided by both parties. Charging exorbitant prices is not illegal though Australian Consumer Law does prohibit “<a href="https://www.accc.gov.au/business/selling-products-and-services/unfair-business-practices#toc-unconscionable-conduct">unconscionable conduct</a>”. But, again, you need to initiate legal proceedings and have a court agree you deserve compensation. <h2>Where to go for help and advice</h2> You can <a href="https://www.airbnb.com.au/d/anz-prohost-resource-centre-support">contact Airbnb</a> for any account, listing, or reservation-related questions. Online forums can also be useful for advice and support. You can report consumer complaints to the <a href="https://www.accc.gov.au/about-us/contact-us/report-a-consumer-issue">Australian Competition and Consumer Commission</a> but the federal regulator does not resolve individual complaints or provide legal advice on your rights and obligations. For preliminary advice go to the following state and territory consumer advice agencies: <hr /> <iframe id="lhlWv" class="tc-infographic-datawrapper" style="border: none;" src="https://datawrapper.dwcdn.net/lhlWv/2/" width="100%" height="400px" frameborder="0"></iframe> <hr /> Please note this article does not constitute legal advice. If you need legal advice, consult a lawyer.<img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/211026/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/mark-giancaspro-182268">Mark Giancaspro</a>, Senior Lecturer in Law, <a href="https://theconversation.com/institutions/university-of-adelaide-1119">University of Adelaide</a> Image credits: Getty Images This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/what-are-your-rights-as-an-airbnb-renter-in-australia-a-law-expert-answers-6-common-questions-211026">original article</a>.

Legal

Outrage after renters confronted with cleaning “scoring system”

An Australian real estate agent has come under fire for their “demoralising” scoring system for tenants during routine inspections. One fired up renter said they were shocked to receive a scorecard from the agent after they complied with an inspection, and shared their feedback on Reddit. The scorecard rated the tenant’s efforts cleaning the property in 17 different rooms and areas, marking them on cleanliness, and if the areas were damaged or required maintenance. The renter was then also given an overall rating out of five stars, based on the upkeep of their rental home. The Reddit user showed that they received just three and half stars, despite being marked down in only one area due to a light globe not working. In their post, the tenant said they had made every effort to clean the home, adding that the rating was “demoralising”. “I’ve been renting a long time, and my deep cleaning routine is based around inspections,” they explained. “I go all out - every room in my little 3x2 villa is given a spring clean, every surface is washed including walls, doors, lights, windows, carpets etc.” “Had my latest inspection a few weeks ago and just received the report. Despite the agent commenting once again that she never sees houses as clean as mine, and taking 112 (!) photos of every single thing that shows how great the condition of the house is - having one light globe not working is so terrible that I’m scored three and a half out of five.” The renter went on to say that they had only recently discovered that the broken light globe was the real estate’s responsibility to replace, and does not warrant such a severe marking down in their “score”. “The globe in question is a downlight fitting. We have so many downlights that I don’t even use this particular one,” they continued. “I can’t replace the globe itself, I need to get into the roof to replace the whole unit. Thanks to people here I’ve learned this isn’t even my responsibility to fix!” The renter’s post sparked a huge outrage online, with many up in arms over the current state of the rental market and unrealistic expectations of estate agents. One person said, “I fully believe that the average renter keeps a home to a higher standard than an owner, and it seems deliberately demoralising that someone could be marked down for having a light out.” Another added, “This is ridiculously petty, and more importantly, totally irrelevant to the purpose of a periodic inspection. Which is to identify whether any maintenance is needed.” A third person took their anger out on the entire system, summing it up by writing, “I sort of wonder what little lightbulb clicks in your mind and you wake up one day and ask yourself, ‘How can I be a massive c*** who offers no value to society? I know! I will get into real estate.’” Image credits: Getty Images / Reddit

Real Estate

RBA boss' blunt suggestion for struggling renters

Reserve Bank of Australia governor Phillip Lowe is warning Aussies that the nationwide rental crisis will worsen before it gets better. Despite high interest rates and a good chance of another increase as inflation continues to skyrocket, the housing market is showing signs of recovery. However, renters are faced with a short supply and the possibility of the biggest rent hike in decades. Lowe urged people struggling with their payments to consider getting a flatmate or housemate or moving back home. He also suggested people rent out their spare rooms to help with the crisis. "The way that this ends up fixing itself, unfortunately, is through higher housing prices and higher rents," he said. "Because as rents go up people decide not to move out of home, or you don't have that home office, you get a flatmate. "The increase in supply can't happen immediately, but higher prices do lead people to economise on housing." Lowe explained that housing supply was the biggest challenge on the market and that rents were expected to increase by 10 per cent. That would be the biggest price hike since the 1980s. However, homeowners will be pleased to hear that the market is showing signs of recovery, with a 1.2 per cent growth recorded in May 2023. Image credit: Getty

Real Estate

Real estate agent fired over "disgusting" comments about renters

A young real estate agent in Sydney's south has been fired after making "vicious" comments online about renters, and bragging about "inflating the market". Abhnit Kumar from Ray White Macarthur Group in Campbelltown shared an advertisement of a property for sale to his professional Facebook page, with the seemingly innocent post gaining attention for its caption. The post read, "The market doesn't dictate your home's price, the agent does. If you're thinking about selling don't leave money on the table, give me a call & let's discuss strategy." The comment was quickly deciphered by his online followers, with one person asking if the market doesn't contribute to a property's price, then "why are you artificially inflating house prices during a period of high inflation?". The 23-year-old real estate agent responded by asking "wouldn't you like to maximise on the profits you can make" when "selling your biggest asset". "Unless you wouldn't then feel free to contact me as I have a buyer for your place," Mr Kumar wrote. The follower quickly hit back, saying "that's not what your post said". "You said you inflate prices, so that the market is overpriced. Your words, not mine ...". The disgruntled commenter added that they would keep "well away" form Mr Kumar and his agency for his future housing needs. The agent fired back, writing, "Hey buddy you clearly must be a renter. Please stay away from my agency as we would not like to deal with people like you." Mr Kumar's last comment, which was quickly deleted, was met with a wave of scrutiny online, prompting one of his followers to screenshot the exchange and send it to Mr Kumar's employer. The individual who contacted Mr Kumar's place of work branded his behaviour "disgusting" and asked the company to confirm whether his comments reflected its morals, forcing the company to speak out. "We pride ourselves on customer service. We respect and value each and every one of our tenants," Ray White Macarthur Group wrote in a statement on Monday, addressing the outrage. "The views of Abhnit Kumar do not align with the values of our group," it continued. "As a result, we've made the business decision to suspend his employment immediately while we conduct an internal investigation." The backlash spilt over into the post's comment section, with one person slamming the "predatory behaviour" of real estate agents as "vicious", while another shared how "shocked" they were by the agent's comments in the face of Australia's ongoing housing crisis. Image credits: TikTok / Ray White

Real Estate

Room to Move: Desperate renters forced into backyard boxes

Victorian tenants have taken desperate measures in their hunt for a home in the midst of a housing crisis, turning to portable rooms set up in their parent’s driveways and backyards. The portables - described as ‘stand-alone separate rooms’ - have been seen across Facebook Marketplace for up to $180 per week, in a time when Melbourne’s median rent has reached $460 each week. The company behind the Room to Move initiative have advertised a 7.2sq m room for $150 per week, and for those seeking a little more wiggle room, a 10.1sq m room is available for $180. However, a minimum hire period of six months applies to both, as well as a bond of $500, and a one-month written notice to end the lease. And for anyone just outside of Melbourne who might be interested, the rooms can be delivered within a three-to-four hour drive from the city - for a fee of $250. The spaces don’t come with bathrooms, but do feature weatherproof electrical sockets that power two double power points, two internal downlights, and a reverse cycle air conditioner. “There’s plenty of demand for people looking for a short term solution for accommodation,” Room to Move co-founder Nick Nottle said of the decision to launch the spaces. “Typically people place [the rooms] in their backyard or on their driveway back off the street a bit.” He noted that the spaces attracted the most attention from renters who were moving back in with family in a bid to save enough for their own house deposit, and that he and business partner Mike Rose launched Room to Move when they noticed a gap in the market, and saw an opportunity for portables that weren’t an eyesore in a residential environment. “Neighbours don’t really complain because people like the look of it,” he said, “it doesn’t look like you’ve just dropped a big shipping container in your backyard.” Beyond desperate renters, however, Nick believes the ‘properties’ also appeal to parents who want something self-contained to get their teenagers out of their hair, as well as having somewhere to house visitors coming from a long way away. And last but not least, according to Nick, “the other group is people using them as an office to work from home, or for studio-type businesses like a lash salon, tattoo parlour or hairdresser - things you can do from home rather than renting a space elsewhere.” Images: Facebook, realestate.com.au

Real Estate

Desperate rental times call for desperate rental note-taking

Renting can be difficult at the best of times, and as many around the world can attest, some landlords have little interest in the upkeep of the properties they’re letting, or in those paying hundreds to thousands of dollars a week to reside in them. And one renter has had enough, deciding it only right to warn whoever might take over their lease after them - a move that Councillor Jonathan Sriranganathan wholeheartedly backed, sharing the renter’s cheeky tactics to Facebook for all to see. “If you’re moving out of a rental and your landlord/agent is showing the property to new prospective tenants,” he wrote, “consider leaving some notes or posters like this in a few prominent locations around the home. “Legally, an agent or landlord shouldn’t be touching or interfering with them in any way.” He later edited the post to include that “this is an actual photo from a Brisbane renter”, and to tell everyone that “no, it wasn’t me - I live on a houseboat.” Attached was an image of the renter’s bold move - a series of notes stuck to what appears to be the inside of a door, each one highlighting a different issue they had faced while living there, with no solutions - or even attempts at one - mentioned. “NOTE TO SELF,” the first one announced, with the following going on to list everything from recurring mould (a common issue faced by renters), nearby construction and its consequent dust and noise, as well as “non-negotiable” rent rises. <iframe style="border: none; overflow: hidden;" src="https://www.facebook.com/plugins/post.php?href=https%3A%2F%2Fwww.facebook.com%2Fjonno.sri%2Fposts%2Fpfbid0MToFp2CzdfGPKD6fq9GYUiiG6H1Wxe8d2GJ9cpYtNP9qYusvm79eX4LaetnNVSptl&show_text=true&width=500" width="500" height="716" frameborder="0" scrolling="no" allowfullscreen="allowfullscreen"></iframe> People were quick to join the discussion - most were on the side of the renter, with one popular comment suggesting that “there should be a system that black lists landlords for breach of agreements, the same way tenants can be black listed for damage. “We also need a website to rate our property managers, landlords and properties.” “Yep. For far too long Landlords have had free reign to abuse their power with no sort of recording or accountability of their behaviour,” wrote one. “I’ve had some wonderful ones and some horrendous ones.” “I used to pull prospective tenants aside and fill them in,” shared another. “A few nervous and cranky landlords in this thread,” quipped one. Meanwhile, someone only had one thing to run by everyone, “so an artistic ‘beware ye, all ye who enter here’ wouldn't be beyond doing?” Others failed to see so much as the funny side - without even mentioning the underlying problems the renter and councillor were begging people to address - and instead tried to scare any like-minded renters from trying something similar. “And good luck with getting a positive rental reference after pulling a stunt like that,” said one. “If you don’t like the rental property just move on,” one suggested, leading many to suspect that they had never - or at least not in a long time - attempted to secure a rental property. “What I don't get is.... if something is causing you this much grief..... do it yourself or pay someone, if the realestate don't pay.... meh you can at least move on with your life for a few hundred dollars,” someone else said, apparently unaware of the limitations many renters are faced with when it comes to touching their rental. Councillor Sriranganathan returned to the post to share comments he’d made to The Courier Mail, adding that “too often, landlords and agents fail to disclose serious property maintenance and amenity issues when a lease is signed so they can trick tenants into paying more rent than a place is worth. “I think it’s great when outgoing tenants can inform future renters of property defects so they know the issues before they sign the contract. Perhaps there should even be a publicly accessible register where tenants can list maintenance issues that haven’t been rectified in order to hold property managers accountable. “Unfortunately the minor reforms (to minimum housing standards) … won’t do much to address unrectified maintenance issues, because many tenants are still afraid that if they request repairs or make complaints, their lease won’t be renewed. “It’s ridiculous to blame chronic maintenance issues on a shortage of tradies. The problem is that landlords who hoard houses are collecting tens of thousands per year in rent, but don’t care enough about their tenants’ welfare to repair dodgy power points or leaking roofs.” Images: Facebook

Real Estate

Do tenancy reforms to protect renters cause landlords to exit the market?

More Australians are <a href="https://theconversation.com/wealthy-landlords-and-more-sharehousing-how-the-rental-sector-is-changing-94394">renting their housing longer</a> than in the past. But they have relatively little legal security against rent increases and evictions compared to <a href="https://theconversation.com/what-australia-can-learn-from-overseas-about-the-future-of-rental-housing-90401">tenants in other countries</a>. When state governments suggest stronger protections for tenants, landlords and real estate agents <a href="https://www.reiq.com/articles/reiq-concerned-rental-reforms-unravel-rights-of-property-owners/">claim it will cause disinvestment</a> from the sector, increasing pressure on already tight rental markets. In <a href="https://www.ahuri.edu.au/research/final-reports/391">research</a> for the Australian Housing and Urban Research Institute (<a href="https://www.ahuri.edu.au/about">AHURI</a>), published today, we put the “disinvestment” claim to the test. We looked at the impacts of tenancy reforms in New South Wales and Victoria on rental property records over 20 years, as well as surveying hundreds of property investors. We found no evidence to support this claim. We did find a high rate of turnover as properties enter and leave the sector. This happened regardless of tenancy law reforms. It’s a major cause of the unsettled nature of private rental housing for tenants. We suggest that if substantial tenancy reforms did cause less committed landlords to exit the sector, that might not be a bad thing. <blockquote class="twitter-tweet"> A tenancy law expert says it could be illegal in several states, while tenants’ advocates say it preys on vulnerable renters during Australia’s housing crisis. <a href="https://t.co/hQEdS80a3h">https://t.co/hQEdS80a3h</a> (via <a href="https://twitter.com/abcnews?ref_src=twsrc%5Etfw">@abcnews</a>) — ABC Australia (@ABCaustralia) <a href="https://twitter.com/ABCaustralia/status/1587927668846399488?ref_src=twsrc%5Etfw">November 2, 2022</a></blockquote> How did we test the disinvestment claim? We analysed records of all rental bond lodgements and refunds in Sydney and Melbourne from 2000 to 2020. From these records we can see properties entering the rental sector for the first time (investment) and exiting the sector (disinvestment). We looked for changes in trends in property entries and exits around two law reform episodes: when the 2010 NSW Residential Tenancies Act took effect, and the start of a tenancy law reform review in Victoria in 2015. We found no evidence the NSW reforms affected property entries (investment). And property exits (disinvestment) were slightly reduced – that is, fewer properties exited than expected. In Victoria, we found property entries reduced slightly when the law reform review started – perhaps a sign of investors pausing for “due diligence”. We saw no effect on property exits. So in neither state did we find evidence of a disinvestment effect. We also surveyed 970 current and previous property investors, and got a similar picture. When deciding to invest, investors said prospective rental income and capital gains were the most important considerations, but tenancy laws were important too. On the other hand, tenancy laws were the least-cited reason for disposing of properties. Many more investors said they did it because they judged it a good time to sell and realise gains, or they wanted money for other purposes, or because the investment was not paying as they had hoped. A state of constant churn Our research also gives new insights into the private rental sector, which <a href="https://www.housingdata.gov.au/">has been growing</a> relative to owner-occupied and social housing. Small-holding “mum and dad” landlords dominate the sector. Some 70% of landlords own a single property. Multiple-property owners own more properties in total, but still relatively small numbers (rarely more than ten) compared to corporate landlords in other countries who have tens of thousands of properties, or even more. Australia now has some large corporate landlords, but their properties are a tiny fraction of the total rental stock. Beneath its gradual growth and persistent small-holding pattern, the private rental sector is dynamic. Properties enter and exit the sector very frequently. In both Sydney and Melbourne, our analysis shows, most properties exit within five years of entering. <figure class="align-center zoomable"><a href="https://images.theconversation.com/files/496048/original/file-20221118-13-8fazlx.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img src="https://images.theconversation.com/files/496048/original/file-20221118-13-8fazlx.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px" srcset="https://images.theconversation.com/files/496048/original/file-20221118-13-8fazlx.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=307&fit=crop&dpr=1 600w, https://images.theconversation.com/files/496048/original/file-20221118-13-8fazlx.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=307&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/496048/original/file-20221118-13-8fazlx.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=307&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/496048/original/file-20221118-13-8fazlx.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=385&fit=crop&dpr=1 754w, https://images.theconversation.com/files/496048/original/file-20221118-13-8fazlx.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=385&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/496048/original/file-20221118-13-8fazlx.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=385&fit=crop&dpr=3 2262w" alt="Chart showing private rental properties, Sydney and Melbourne, 2000–20, by year of first observation in rental bonds data and at five-year intervals" /></a><figcaption>Numbers of private rental properties in Sydney and Melbourne at five-year intervals from 2000 to 2020. Properties are categorised by year of first observation in rental bonds data. The authors</figcaption></figure> More than 30% of tenancies begin in a property that’s new to the rental sector. And more than 25% of tenancy terminations happen when the property exits the sector. Our investor survey also shows the sector’s dynamism. Many investors made repeated investments, owning multiple properties and some interstate. They indicated strong interest in <a href="https://theconversation.com/ever-wondered-how-many-airbnbs-australia-has-and-where-they-all-are-we-have-the-answers-129003">short-term letting</a>, such as Airbnb, and significant minorities had used their properties for purposes other than rental housing. Australia’s rental housing interacts closely with other sectors, particularly owner-occupied housing, as houses and strata-titled apartments trade between the sectors. The tax-subsidised property prices paid by owner-occupiers heavily influence investors’ gains and decision-making. Rental is also increasingly integrated with tourism, through governments’ <a href="https://theconversation.com/who-wins-and-who-loses-when-platforms-like-airbnb-disrupt-housing-and-how-do-you-regulate-it-106234">permissive approach to short-term letting</a>. In short, the Australian rental sector is built for investing and disinvesting. As properties churn in and out of rental, renters are churned in and out of housing. This presents problems for tenants. A new agenda for tenancy law reform Australian residential tenancies law has accommodated the long-term growth of the rental sector and its dynamic character. With no licensing or training requirements, it’s easy for landlords to enter the sector. It’s also easy to exit by terminating tenancies, on grounds they want to use a property for other purposes, or even without grounds in many cases. Over the years tenancy law reform has fixed some problem areas, but with virtually no national co-ordination. Laws are increasingly inconsistent on important topics, such as tenants’ security (for example, some states have restricted, but not eliminated, no-grounds terminations), minimum standards and domestic violence. Reforms have overlooked significant problem areas, such as steep rent increases and landlords’ liability for defective premises. <blockquote class="twitter-tweet"> Works for Australia too. Although don't even need to pretend to put it on the market in NSW, it's called a "no grounds eviction" or perhaps more accurately: "tenant expected a liveable home or repairs to broken stuff". <a href="https://t.co/GolGDqlyCu">https://t.co/GolGDqlyCu</a> <a href="https://t.co/wORI3K6Yap">pic.twitter.com/wORI3K6Yap</a> — Nathan Lee (@NathanLee) <a href="https://twitter.com/NathanLee/status/1542298797039964160?ref_src=twsrc%5Etfw">June 30, 2022</a></blockquote> It is time to pursue a national agenda that goes further than previous limited reforms. The focus should be on the rights of tenants to affordable housing, in decent condition, that supports autonomy and secure occupancy. Where landlords say it is too difficult and they will disinvest, this should not be taken as a threat. Indeed, it would be a good thing if the speculative, incapable and unwilling investors exited the sector. This would make properties available for new owner-occupiers and open up prospects for other, more committed landlords, especially non-profit providers of rental housing. Similarly, if we had higher standards and expectations to discourage private landlords from entering the sector, that would open up scope for new owner-occupiers and investors who are less inclined to churn properties and households. While past tenancy law reforms have not caused disinvestment, maybe the next reforms should. <hr /> The authors acknowledge the contributions of their research co-authors, Professor Kath Hulse, Professor Eileen O’Brien Webb, Dr Laura Crommelin and Liss Ralston.<img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/194900/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> Writen by Chris Martin, Milad Ghasri, Sharon Parkinson and Zoe Goodall. Republished with permission from <a href="https://theconversation.com/do-tenancy-reforms-to-protect-renters-cause-landlords-to-exit-the-market-no-but-maybe-they-should-194900" target="_blank" rel="noopener">The Conversation</a>. Image: Getty Images

Real Estate

Proposed rule change could save renters thousands

The competing pressures of Australia’s housing crisis and rising inflation has seen renters across the country feel the pinch - but one of Labor’s 2023 state election promises could provide some relief from renters in New South Wales. NSW Labor leader Chris Minns has made a proposal that would see bonds paid for rentals become “portable”, meaning that they could be transferred from one property to another when tenants move, as reported by <a href="https://www.realestate.com.au/news/simple-proposed-change-could-save-tenants-thousands-of-dollars/" target="_blank" rel="noopener">realestate.com.au</a>. The change could reduce the amount renters need to save prior to moving, given that bonds are one of the biggest costs for tenants, and allow a bond to be moved to another property when a new lease is signed. Landlords would receive a certificate from the NSW Rental Board that would hold the rental bond tenants paid on the previous property, with the Board also being responsible for managing payments of cost differences and claims for property damage. Tenants Union NSW CEO Leo Patterson Ross said the proposal was welcome and urged the rest of Australia to adopt similar legislation. "We support the proposal as part of addressing the increasing costs of bonds and renting generally," he said. "The legislation to allow it occurred in 2018, but was never implemented." Currently, renters moving between leases are forced to take out loans to pay for the new bond while waiting for their previous one to be refunded, in what Mr Patterson Ross called a “double bond”. "The pain point of double bonds at the end of tenancies causes people a lot of issues," he said. "The average bond in NSW at the moment is $2200 and more than 60% of bonds are returned in full to the renter, while less than 15% are kept in full by the landlord. "Having to produce $2200 to cover the gap between one tenancy and the next is increasingly being exploited by lightly regulated pay-day lenders, which may rely on fees as well as interest to apply very high lending costs." If NSW introduces the portable bond scheme, it would be an Australian first, but there are other ways governments can help renters out. In NSW and most other states, the government offers interest free loans to help cover the cost of bonds, but these programs are only available to those in social housing. However, renters in the ACT who are on moderate incomes - $101,868 for singles and $135,284 for couples - are also eligible for this scheme. Mr Minns is also proposing laws to require landlords to provide reasonable grounds for evicting tenants, a change from current rules where tenants can be evicted without a reason given if they are on six-month or 12-month leases. Image: Getty Images

Money & Banking

Renter left “violated” after routine inspection

An Australian renter has sought advice after a routine rental inspection left them feeling violated and uneasy. The tenant, who lives in Western Australia, revealed that the agent took “a ton” of photos, including some of the toilet and inside the oven. Taking to Reddit, they asked whether that level of documentation was allowed. “I’m new to renting in australia (sic) – just had my first routine inspection which involved a ton of photos including inside the oven and the toilet,” they wrote. “Is this legal? I genuinely feel violated. (WA if that matters).” Some responded with suspicion and confusion, questioning whether the number of photos was “intimidation” or whether finding “crumbs in the oven” or “a skid mark in the toilet” would be enough of an issue to inform the landlord. One user explained that the photo of the oven could be used to ensure the tenant was keeping it clean, given the risk of fires starting as a result of grease buildup in dirty ovens. “The photos of the oven be about making sure you’re keeping the oven in a clean order. “Which you should be because having to clean an oven that hasn’t been clean in years is horrible,” they wrote. However, one user revealed that photography was a common practice during inspections and that real estate agents find the task just as much of a chore as renters. “Don’t take it personally, it is common practice among most rentals to take photos of anything and everything, I don’t know about the toilet bowl, that might be specifically related to the photographer, questions you might not want answers to,” they said. “The photos and the completed condition report is then sent to the owner, but they can’t open cupboards or wardrobes and take photos, unless there is visible damage. “Side note.. Friend works in real estate doing inspections, it’s no party for them either.” Western Australian law states that, if photos need to be taken during routine property inspections both the agent and the tenant should sight the photos and sign them, as reported by Domain. But, WA’s Consumer Protection also notes that photos shouldn’t “depict anything beyond what is necessary” and that tenants can ask the property manager if photos will be taken so that they can put personal items away. Image: Getty Images

Real Estate

Renters spend 10 times as much on housing as petrol. Where’s their cost-of-living relief?

If the pre-election budget was designed to address the cost of living, it missed something. In an effort to help those whose wages aren’t growing as quickly as prices, it offered <ul> <li> a one-off A$250 payment to <a href="https://ministers.treasury.gov.au/ministers/josh-frydenberg-2018/media-releases/parliament-passes-legislation-lower-costs-and-support">income support recipients</a> </li> <li> a temporary increase in the <a href="https://theconversation.com/this-pointless-1-080-tax-break-should-have-ended-years-ago-but-has-become-hard-to-stop-177546">low-and-middle-income tax offset</a> </li> <li> a six-month halving of the <a href="https://ministers.treasury.gov.au/ministers/josh-frydenberg-2018/media-releases/parliament-passes-legislation-lower-costs-and-support">fuel excise</a> </li> </ul> But it failed to offer help to some of the Australians who need it the most. Australians only spend <a href="https://www.abs.gov.au/articles/automotive-fuel-cpi">3 per cent of their incomes</a> on petrol. The typical renter spends more than <a href="https://www.abs.gov.au/statistics/economy/finance/household-expenditure-survey-australia-summary-results">10 times</a> as much on rent. After a minor and temporary reprieve early in the pandemic, advertised rents are again on the rise – <a href="https://sqmresearch.com.au/weekly-rents.php?national=1&t=1">up nearly 10%</a> over the last 12 months. Low-income renters are especially hard hit. More than half suffer <a href="https://grattan.edu.au/wp-content/uploads/2022/03/Grattan-Institute-Submission-to-the-PC-review-of-the-NHHA.pdf">rental stress</a>, meaning they spend more than 30% of their income on rent. One-third have <a href="https://www.theguardian.com/australia-news/2022/mar/30/scott-morrison-says-best-way-to-help-renters-is-to-help-them-buy-a-house-federal-budget">less than $500 of savings on hand</a> in the event of an emergency. Prime Minister Scott Morrison has responded to complaints about rent by saying the “<a href="https://www.theguardian.com/australia-news/2022/mar/30/scott-morrison-says-best-way-to-help-renters-is-to-help-them-buy-a-house-federal-budget">best way to support people renting a house is to help them buy a house</a>”. <h2>Cutting deposits can’t cut it</h2> Morrison points to the federal government’s decision to more than double the size of the <a href="https://ministers.treasury.gov.au/ministers/josh-frydenberg-2018/media-releases/2022-23-budget-backs-aspiring-homeowners">Home Guarantee Scheme</a>, which helps people buy a home with less than the standard 20% deposit. From this year, up to 50,000 people will be able to access the scheme, under which the government offers a guarantee to the banks that cuts the up-front deposit to 5% for ordinary first home buyers and just 2% for 5,000 single parents. There are 10,000 places reserved for regional house buyers. The expanded scheme will help some Australians buy their first home earlier, but for everyone else looking to buy a house, the extra demand created by the scheme risks pushing up prices even higher. And many renters won’t be able to find even the 5% deposit. Five per cent of $600,000 is $30,000. <h2>Rent assistance assists less</h2> If we really wanted to help low-income renters, we would boost rent assistance. <a href="https://www.dss.gov.au/housing-support/programmes-services/commonwealth-rent-assistance">Commonwealth Rent Assistance</a> is paid to pensioners, other beneficiaries and those receiving more than the base rate of Family Tax Benefit Part A who rent in the private rental market or community housing. Paid at the rate of 75 cents for every dollar of rent above a threshold until a maximum, it works out at up to for <a href="https://www.servicesaustralia.gov.au/how-much-rent-assistance-you-can-get?context=22206">$72.90</a> a week for a single and $68.70 for each member of a couple. It hasn’t kept pace with rent. Boosting it by 40%, (roughly $1,450 a year for a single), would restore it to where it was in relation to rent, albeit at a substantial cost – <a href="https://www.dss.gov.au/sites/default/files/documents/03_2022/2022-23_social_services_pbs.pdf">$2 billion per year</a>. If the new rate was linked to the rents low-income earners actually pay, rather than to overall inflation as it has been, renters would be protected in the future. Some argue this would lead to higher rents. But <a href="https://www.ahuri.edu.au/research/final-reports/342">that’s unlikely</a>. Most low-income renters first pay what’s needed to put a roof over their heads, then use what they have left to cover food and other bills, rather than offering more rent. <h2>Rents needs properties</h2> The other thing governments can do is to increase the number of homes. Australian cities are not delivering denser forms of housing – <a href="https://www.afr.com/link/follow-20180101-p57uw">townhouses and apartments</a> – in the quantities Australians say they want. The people who already live in a given suburb usually want it to stay as it is, whereas the people who would like to live there don’t get a say because they can’t vote in council elections. Their interests are left unrepresented, meaning housing isn’t built where it is needed. The Commonwealth can help drive change by offering the states <a href="https://grattan.edu.au/wp-content/uploads/2022/03/Grattan-Institute-Submission-to-the-PC-review-of-the-NHHA.pdf">incentives</a> tied to how well housing supply keeps up with population growth. This will only reduce rents slowly, but low-income renters stand to gain the most since they are the first to lose out in the scramble today, just as they seem to have lost out in the pre-election budget. Image credits: Getty Images This article originally appeared in <a href="https://theconversation.com/renters-spend-10-times-as-much-on-housing-as-petrol-wheres-their-cost-of-living-relief-180702" target="_blank" rel="noopener">The Conversation</a>.

Real Estate

Renter leaves hidden warnings to future tenants

A fed-up tenant has left hidden warnings for the future occupants of a Melbourne rental property to tip them off about the home’s issues. The notes, which went unnoticed by the real estate agent, were designed to prove the $600-a-week rental asking price was extreme, given the ongoing issues in the house that had not been adequately fixed. The person viewing the house found the notes and shared them to Reddit, saying the leasing agent hadn’t bothered to inspect the property. In the kitchen, a note was found attached to the exhaust fan above the stove and reads, “Rangehood doesn’t work, but window over sink fills house with bugs”. Another hidden note warned that the laundry window was the only way to ventilate the room, but there was no fly screen attached. “Water pressure has been fixed twice but still low,” said another note. The previous tenant also pointed out that cracks in the roof and walls had been “patched up” over time in one note inside the house. The person who found the hidden messages said it was “the most fun” they had at an inspection, as they searched the property for more secret notes. “The old tenant is a legend,” they said. Many online users celebrated the tenant’s gutsy move, describing it as “awesome”. “That tenant deserves a medal,” wrote one person. “This person is a true hero,” a user commented. “This is great. Wish we could see this more often. I know agents would remove notes left in the house. But get sneaky with it. Hide them in drawers and in dishwashers. House hunting is exhausting without having to worry about slimy real estate agents,” said another. One commenter even suggested starting a website “where tenants can leave a truthful report of a house, agent and landlords for the benefit of prospective future tenants”. Image credits: Getty Images / Reddit

Real Estate

“I wouldn’t want to buy even if I had the money”: The rise of renters by choice

The private rental sector has expanded at <a href="https://www.ahuri.edu.au/__data/assets/pdf_file/0024/53619/AHURI-Final-Report-323-The-supply-of-affordable-private-rental-housing-in-Australian-cities-short-term-and-longer-term-changes.pdf">more than twice the rate</a> of the increase in Australian households in the last two decades. This <a href="https://www.tandfonline.com/doi/abs/10.1080/14036096.2018.1467964">increasingly diverse form of tenure</a> now houses about <a href="https://www.abs.gov.au/ausstats/abs@.nsf/Lookup/by%20Subject/4130.0%7E2017-18%7EMedia%20Release%7EMore%20households%20renting%20as%20home%20ownership%20falls%20(Media%20Release)%7E10">one in four of us</a>. Australia’s <a href="https://www.ahuri.edu.au/__data/assets/pdf_file/0028/15895/AHURI_Final_Report_No_292_The_changing_institutions_of_private_rental_housing_an_international_review.pdf">lightly regulated private rental sector</a> means the <a href="https://journals.sagepub.com/doi/abs/10.1177/1440783317707833?journalCode=josb">insecurity of tenants</a> is a key factor in why most Australians <a href="https://www.abc.net.au/news/story-streams/federal-budget-2017/2017-05-07/housing-affordability-australia-statistics-federal-budget-2017/8502106">aspire to own their home</a>. However, despite this insecurity, our <a href="https://www.tandfonline.com/doi/abs/10.1080/14036096.2018.1467964">research</a> suggests an increase in people choosing to <a href="https://www.tandfonline.com/doi/full/10.1080/02673037.2017.1301400">rent for a long time</a> – ten years or more – accounts for a small part of the growth in private renters. Much of this growth is attributable to <a href="https://www.ahuri.edu.au/__data/assets/pdf_file/0024/53619/AHURI-Final-Report-323-The-supply-of-affordable-private-rental-housing-in-Australian-cities-short-term-and-longer-term-changes.pdf">middle- and high-income tenants</a>. Especially in Melbourne and Sydney, <a href="https://localgovernmentandhousingproject.files.wordpress.com/2018/09/iuhf-journal-summer2018_alan_morris.pdf">high housing prices</a> mean saving for a deposit takes much <a href="https://neo.ubs.com/shared/d1ZatPa3iM8ech/">longer than in the 1990s</a>. In the meantime these households are renting <a href="https://www.tandfonline.com/doi/full/10.1080/02673037.2017.1301400">for a long time</a>. ‘Who stays put, loses’ In our survey of 600 private renters in different areas of Sydney and Melbourne, we asked: “Many people are renting privately for longer periods (10+ years). Do you think this is a positive trend?” About a third responded in mainly positive terms. Their main reasons were: <ul> <li> renting is more affordable than owning </li> <li> there are fewer worries and liabilities </li> <li> renting is more flexible than owning. </li> </ul> Some questioned the <a href="https://www.tandfonline.com/doi/full/10.1080/14036096.2018.1467964">norm of home ownership in Australia</a>. For a more in-depth understanding, we interviewed 60 long-term private renters in low, medium and high-rent areas in Melbourne and Sydney. Almost all who chose to rent mentioned flexibility as a key advantage. “Choosers” highly valued the freedom to move or travel at will. Zygmunt Bauman’s concept of <a href="https://www.wiley.com/en-us/Liquid+Modernity-p-9780745624099">liquid modernity</a> highlights the increasing desire for transience. As he <a href="https://books.google.com.au/books?id=zZwvv3tQ1UYC&pg=PT95&lpg=PT95&dq=Transience+has+replaced+durability&source=bl&ots=VbuUO62ZhV&sig=ACfU3U32LtxCmjxJfboinOrMwt706zkAVw&hl=en&sa=X&ved=2ahUKEwjP4_qby7vnAhXwwzgGHYJXDagQ6AEwAHoECAYQAQ#v=onepage&q=Transience%20has%20replaced%20durability&f=false">explains</a>: <blockquote> Transience has replaced durability at the top of the value table. What is valued today (by choice as much as by unchosen necessity) is the ability to be on the move, to travel light and at short notice. Power is measured by the speed with which responsibilities can be escaped. Who accelerates, wins; who stays put, loses. </blockquote> Renters in their own words Patricia*, who lives in a high-rent part of Melbourne, has always rented. <blockquote> Well since I came to Australia in 1977, I rented. I didn’t want to buy. Got close [to buying] a couple of times, but changed my mind. I just travel anywhere and everywhere. I thought […] if you’ve got a house you’re stuck there, and I thought, no. I work hard for my money, so that money that I work hard for is for me, not to have a [permanent] roof over my head. […] Renting has been good for me because I can still do what I want. </blockquote> Myra lives in a studio apartment in a high-rent area in Sydney and has no desire to own a home. She is single, in her mid- to late 30s, and earns well. The possibility of being asked to vacate did not bother her. <blockquote> Maybe I’ve been lucky, but every situation has always sorted itself out. You know a lot of people would have freaked out if they had to move out […] It didn’t concern me in the slightest, yeah. I mean not at all. There’s always somewhere to stay. So it suits my lifestyle. I wouldn’t want to buy [a property], even if I had the money. </blockquote> Leanne inherited a third of a house. Rather than using the proceeds to buy a property, she decided to move to Melbourne’s inner city (a high-rent area) and continue renting. <blockquote> So I thought rather than put money into a house […] I would invest it and I could travel and go to concerts and live the life I wanted to lead, so that’s basically what I did and I’m still renting. </blockquote> Pam was renting in a low-rent area in outer Sydney. She felt her situation required the flexibility of renting: <blockquote> The relationship was rocky and you can’t predict the future, but I knew it wasn’t going to end up in marriage and kids and all that kind of crap […] We were both working, both earning good money and we could have afforded to buy a house between us […] But for me it was like, no. I don’t know where this [her relationship] is going, so no way, I’m not going to put myself in that predicament [having a joint mortgage] and then have to go through court to go, “This is mine, this is yours”, all that crap. But so it was my choice to rent and to stick to it […] I’m not going to rely on anybody else for anything, no way. </blockquote> Her renter status allowed Pam to make a rapid, clean break. <blockquote> I just got up one day and walked cos I knew he was going to ask me to marry him the next day, so I said: “I’m just going to go to the shops to get a packet of cigarettes.” I left everything behind. I went for a walk, never went home. </blockquote> For the families with children who choose to rent long-term, the key reason is it allows them to live in highly desirable areas where they cannot afford to buy. Gabrielle and her partner earn well and live in a high-rent area in Sydney: <blockquote> Sure it [home ownership] provides you with security and you don’t have that stress of […] having to move. I get that, but at the same time, you know for us, for example, if we wanted to buy we’d be paying four times what we pay at the moment in a mortgage […] It doesn’t really make financial sense to go and do that […] You’d have to live somewhere. So I choose to live in a nice area where my children are [at school]. </blockquote> They also did not want the burden of a large mortgage: <blockquote> […] I have no desire to put myself in a position where I have a $2 million mortgage and have to work for the rest of my short life to pay for it […] </blockquote> Although probably only a small proportion of people choose to rent long-term, this option may be gaining ground. Young, well-paid professionals in particular see the flexibility of private renting as attractive. Location also seems to be a critical factor. Most of the choosers rented in desirable inner suburbs of Sydney and Melbourne, which would otherwise be inaccessible. An estimated <a href="https://www.tandfonline.com/doi/full/10.1080/02673037.2014.925097">one-in-eight private renters</a> are “rentvestors” who rent where they want to live and buy elsewhere to get a foothold in the housing market. *All names used are pseudonyms.<img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important; text-shadow: none !important;" src="https://counter.theconversation.com/content/130696/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/alan-morris-13337">Alan Morris</a>, Research Professor, <a href="https://theconversation.com/institutions/university-of-technology-sydney-936">University of Technology Sydney</a>; <a href="https://theconversation.com/profiles/hal-pawson-147969">Hal Pawson</a>, Associate Director - City Futures - Urban Policy and Strategy, City Futures Research Centre, Housing Policy and Practice, <a href="https://theconversation.com/institutions/unsw-1414">UNSW</a>, and <a href="https://theconversation.com/profiles/kath-hulse-228874">Kath Hulse</a>, Research Professor, Centre for Urban Transitions, <a href="https://theconversation.com/institutions/swinburne-university-of-technology-767">Swinburne University of Technology</a> This article is republished from <a href="http://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/i-wouldnt-want-to-buy-even-if-i-had-the-money-the-rise-of-renters-by-choice-130696">original article</a>.

Retirement Income

Growing numbers of renters are trapped for years in homes they can't afford

Low-income tenants in Australia are increasingly likely to be trapped in rental stress for years. <a href="https://www.pc.gov.au/research/completed/renhters/private-renters.pdf">New evidence</a> from the Productivity Commission shows almost half of such “rent-burdened” private tenants are likely to remain stuck in this situation for at least half a decade. Rental stress is where a low-income tenant faces housing costs that leave them without enough income for food, clothing and other essentials. The scale of the problem – <a href="https://www.abs.gov.au/ausstats/abs@.nsf/Lookup/by%20Subject/1370.0%7E2010%7EChapter%7ERental%20stress%20(5.4.2.1)">commonly defined as when rent eats up more than 30% of income</a> – is usually presented as a “point in time” or snapshot statistic. As the Productivity Commission report reveals, the snapshot number in this situation has increased from 48% of low-income renters in 1995 to 54% in 2018. That’s around 1.5 million people pushed into poverty by high housing costs. For some, of course, this will be only a temporary problem. On this basis, it is sometimes argued that concerns over Australia’s high rate of rental stress are overstated. However, the Productivity Commission report, <a href="https://www.pc.gov.au/research/completed/renters/private-renters.pdf">Vulnerable Private Renters: Evidence and Options</a>, highlights longitudinal survey evidence showing that a low-income tenant’s experience of rental stress is increasingly likely to be long-term – not a passing problem. As the commission notes: <blockquote> […] a growing number of households find themselves stuck in rental stress. </blockquote> What is the evidence for this? This conclusion stems from a comparison of two different tenant cohorts experiencing rental stress as revealed by survey data for 2001 and 2013. Less than a third (31%) of the 2001 cohort remained in stress five years later. But almost half (46%) of the 2013 cohort were. <a href="https://images.theconversation.com/files/296994/original/file-20191015-98657-1evkw2.PNG?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img src="https://images.theconversation.com/files/296994/original/file-20191015-98657-1evkw2.PNG?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" alt="" /></a> While many people exit rental stress quickly, the proportion of private. low-income renters in long-term rental stress has increased significantly. <a href="https://www.pc.gov.au/research/completed/renters/private-renters.pdf" class="source">Vulnerable Private Renters: Evidence and Options, Productivity Commission</a>, <a href="http://creativecommons.org/licenses/by/4.0/" class="license">CC BY</a> So, it’s not just that more low-income earners are paying unaffordable rents at a particular point in time. This is increasingly a situation that affected private tenants cannot escape. Beyond the obvious welfare impacts, <a href="https://cityfutures.be.unsw.edu.au/documents/515/Full_Report_Final_edited_logos.pdf">recent work</a> argues that excessive rent burdens may also damage human capital and, as a result, reduce economic productivity. The commission’s findings seem to suggest the ongoing restructuring of Australia’s labour market and housing system is eroding socioeconomic and/or housing mobility. The report notes the significant fall in the numbers who manage to move from renting to owning – from 13.6% of renters in the period 2001-04 to 10.0% from 2013-16. Perhaps slightly more surprising is the commission’s explanation for the rising rate of (point in time) rental stress for all low-income tenants. According to the report, this results not from increasing unaffordability for the private renter cohort specifically, but from the growing dominance of private rental housing as the tenure in which low-income households live. <a href="https://images.theconversation.com/files/296993/original/file-20191015-98661-b2ne0v.PNG?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img src="https://images.theconversation.com/files/296993/original/file-20191015-98661-b2ne0v.PNG?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" alt="" /></a> The number of private renters has grown as the proportions of owner occupiers and public housing tenants have fallen. <a href="https://www.pc.gov.au/research/completed/renters/private-renters.pdf" class="source">Vulnerable Private Renters: Evidence and Options, Productivity Commission</a>, <a href="http://creativecommons.org/licenses/by/4.0/" class="license">CC BY</a> This, of course, results from the post-1990s <a href="https://theconversation.com/australia-needs-to-reboot-affordable-housing-funding-not-scrap-it-72861">failure of Australian governments</a> to expand the supply of social housing to match population growth. By 2018, well over two-thirds (71%) of low-income tenants were <a href="https://www.pc.gov.au/research/completed/renters/private-renters.pdf">renting in the (relatively expensive) private market</a> – rather than from a (rent-limiting) social landlord. Back in 1996, barely half (52%) of them were renting privately. What does this mean for policy? The report presents some useful discussion of possible policy directions. For example, while dismissing rent control as liable to advantage existing tenants at the expense of potential tenants, the report is implicitly critical of residential tenancy laws in most states and territories. The report advances the broad case that <a href="https://theconversation.com/an-open-letter-on-rental-housing-reform-103825">tenancy law reforms</a>, “if well designed”, can enhance tenant welfare “without substantially increasing the cost of renting”. Longer notice periods are particularly favoured because these will “provid[e] vulnerable families more time to find new accommodation and prepare for the move”. Slightly more controversially, the commission strongly hints at support for outlawing no grounds evictions. The landlord power to end a tenancy without any need to justify the move persists across most states and territories. Discussing this power the report states: <blockquote> It increases the bargaining power of landlords […] and decreases that of tenants. Landlords’ incentives to carry out obligations, such as repairs and maintenance, decrease when no grounds evictions are available, since this provides them with an avenue to terminate leases in the event of a dispute. </blockquote> However, having highlighted a private rental affordability problem that is both growing in scale and becoming demonstrably more entrenched, the report is timid on solutions beyond modestly improving tenancy conditions. It argues in general terms for an increase in <a href="https://www.dss.gov.au/housing-support/programmes-services/commonwealth-rent-assistance">Commonwealth Rent Assistance</a> but – beyond tentatively floating a 10% rise in maximum payments – advances no specific proposal. Expanding the social housing stock as part of the broad-ranging housing strategy Australia badly needs is scorned as “an expensive option”. This is a reference to the narrowly scoped analysis in the commission’s <a href="https://www.pc.gov.au/inquiries/completed/human-services/reforms/report/human-services-reforms.pdf">2017 Human Services report</a>. It favoured market solutions to provide low-income housing – on efficiency grounds. The “expensive option” assertion is out of line with the more broadly framed analysis of the Productivity Commission’s predecessor, the Industry Commission. The latter <a href="https://parlinfo.aph.gov.au/parlInfo/search/display/display.w3p;query=Id:%22publications/tabledpapers/HPP032016005137%22;src1=sm1">concluded</a>: <blockquote> Public housing and <a href="https://www.ahuri.edu.au/policy/ahuri-briefs/what-is-head-leasing">headleasing</a> [when social housing providers sublease private rental properties] are assessed to be more cost-effective than cash payments and housing allowances. </blockquote> While the Industry Commission report admittedly dates from 1993, the subsequent failure of overwhelmingly private provision for low-income renters surely presents compelling reasons to revisit the investment case for social housing. Written by Hal Pawson, Associate Director - City Futures - Urban Policy and Strategy, City Futures Research Centre, Housing Policy and Practice, UNSW. Republished with permission of <a rel="noopener" href="https://theconversation.com/growing-numbers-of-renters-are-trapped-for-years-in-homes-they-cant-afford-125216" target="_blank">The Conversation</a>.

Retirement Income

Ideas of home and ownership in Australia might explain the neglect of renters’ rights

In Australia, when we think of home, we think of ownership. This normalisation of home ownership is reflected in the “Great Australian Dream”, the belief that it’s the best way to achieve financial security. This “dream” is based on the premise that if you work hard you will one day be able to buy a home. Home ownership is an important goal for many Australians. Home ownership implies success. Linked to the importance of home ownership are our conceptions of home – what home means and the ways home can and should be made. Popular understandings of home suggest that feelings of home are most easily created between a house and the person who owns it. What is home? So ingrained is this relationship between home and ownership that in <a href="https://onlinelibrary.wiley.com/doi/abs/10.1111/gec3.12354">my recently published paper</a> I argue that research rarely considers the ways non-owners make and think about home. This is problematic, given recent housing trends. Recent changes in housing, particularly the increased cost of home ownership and <a href="https://theconversation.com/australia-needs-to-reboot-affordable-housing-funding-not-scrap-it-72861">curbing of public housing</a>, have created a greater demand for rental housing. As a result, there is an undersupply of privately rented housing in Australia. Australian tenancy laws add to the <a href="https://theconversation.com/the-insecurity-of-private-renters-how-do-they-manage-it-77324">insecurity of the private rental sector</a>. Tenancy laws and policy reflect cultural norms in Australia, where private renting is seen as a form of short-term, transitional housing. Recently, significant media and public <a href="https://theconversation.com/an-open-letter-on-rental-housing-reform-103825">attention</a> has been directed at the <a href="https://theconversation.com/life-as-an-older-renter-and-what-it-tells-us-about-the-urgent-need-for-tenancy-reform-103842">impact of state-based tenancy legislation</a>. It is argued that tenancy laws need to be changed to reflect current housing trends and the needs of many tenants to have long-term, secure housing. Rental insecurity is a persistent source of stress for many tenants. It’s a key reason that many tenants struggle to feel at home in their rental property. A person’s ability to identify feelings of home with their dwelling has been shown to impact <a href="https://www.tandfonline.com/doi/abs/10.1080/14036090120617?casa_token=norku4gEmtoAAAAA:VN2dQFxec3pdp9jtLzo6TrUmE3Us7oa_-mZq0wZRRwSTAep3DjdqdaCc_hFARNCALCZWta1jDQ83Nw">psychological health and overall well-being</a>. My research findings suggest that while tenancy law affects the ways we understand and make home, likewise, our meanings of home affect how we shape and understand tenure and policy. Australian tenancy law reflects broader cultural values that associate the meaning and making of home with home ownership. While researchers and policymakers focus on how tenancy law can negatively affect or restrict renters within their homes, the actual practices of home-making by renters are often overlooked. Current understandings of home typically reference what home means to home owners. My research points to the importance of understanding the ways private renters make home – and make home meaningful – so that any changes to tenancy law reflect the needs of tenants. Is having a home a right or a privilege? While there is no doubt that small changes are being made, perhaps the <a href="https://theconversation.com/dickensian-approach-to-residential-tenants-lingers-in-australian-law-65146">lack of consideration for tenants in tenancy laws and policy</a> is indicative of our larger beliefs about what it is to “feel” at home and make a home. The “Great Australian Dream” is based on the belief that hard work will eventually lead to home ownership. Yet owning a home is becoming impossible for many people, irrespective of how hard they work. If we understand home to be a basic right, then we will have policies that reflect this. If we understand home to be a privilege, reserved only for those who manage to achieve home ownership, then we will forever live in a country where tenure security and a feeling of being “home” are reserved for those who are able to buy a house. Consequently, our policies will continue to support the idea that, ultimately, a rental property cannot be “home” to a tenant. The question then remains: do we consider home a right or a privilege? This issue is at the very heart of Australia’s housing crisis. Until we change our meaning of home by separating it from ownership, we will never be able to “fix” Australia’s housing crisis. Written by Bronwyn Bate. Republished with permission of <a href="https://theconversation.com/ideas-of-home-and-ownership-in-australia-might-explain-the-neglect-of-renters-rights-104849">The Conversation</a>.

Home & Garden

Why lifelong renters face financial stress in retirement

If you do not own a home by the time you are in your late 40s, you will probably never own one — and you will probably be significantly poorer than those who do. That is according to a paper released on Monday by Swinburne University, which found more Australians are renting in retirement and facing financial stress. The study’s authors have called for the axing of the capital gains tax concession and the reinstatement of death duties, or a small inheritance tax, to reduce what they see as the widening wealth gap between homeowners and non-homeowners. “Housing is a probably the key way of generating wealth, but people who are unable to purchase or fall out of home ownership will find that they don’t have as much wealth in retirement,” research author Andrea Sharam said. The paper showed if you had not purchased property by mid life (45-49 years old), there was a strong likelihood you would not purchase thereafter. Financial experts have previously advised “generation rent” — the growing cohort of young people priced out of the property market — would find it <a href="http://www.domain.com.au/news/generation-rent-never-buying-a-property-will-mean-saving-more-for-retirement-20160519-goxnsg/" target="_blank">difficult to retire as wealthy</a> as a property owner, largely because Australia’s retirement income system is predicated on owning a home outright in retirement. But the study, from Swinburne’s Institute for Social Research, shows an increasing number of older renters are already experiencing housing insecurity and impoverishment. There are close to 426,000 Australians over the age of 50 years living alone or with a partner in private rentals, but population projections suggest there would be 832,319 by 2050. “That will put a lot of pressure on the pension system and even more pressure on the rental market, which does not cater to older people on low incomes as it is,” said National Shelter executive officer Adrian Pisarski said. For Leigh Evans, 41, purchasing a property has never been an option. She is currently house sitting in Coburg, in Melbourne’s north, but sees her housing future as insecure. “I grew up poor, both my parents never owned a home when I was younger … so I never had that expectation,” the business analyst and author said. Ms Evans said the research made her retirement situation appear bleak. “I look forward to dying early,” she laughed. “It’s gallows humour but the situation is real — it’s homelessness. “I think that it’s well beyond time that Australia stopped keeping alive this delusion that the quarter acre block dream still exists for many people.” The study also showed that in the older age brackets, 65 to 69 year olds, the wealthiest segments were those who owned both their own home and other properties. Yet the net wealth of such owners slipped between 2003 and 2013, likely because they had taken on more debt relating to the leveraging of those other properties, Ms Sharam said. Several policy recommendations have come out of the analysis, including increased investment in social housing, as well as tax policies that discouraged people buying property for capital gains. “Because that’s just creating house price inflation, which makes it hard for people to enter into home ownership in the first place,” Ms Sharam said. “These people have been given a lot of public money in effect [from tax breaks], so its entirety reasonable that they could give some of it back at the point in time where it does not hurt them and their heris, and it goes into social housing.” But the Victorian Property Council executive director Sally Capp said removing the capital gains concession would be counterproductive and would result in less investment in residential property construction. While the council had no formal position on reintroducing death duties, Ms Capp said, the Victorian government did not need to introduce new taxes to fund its affordable housing ambitions. What are your thoughts? Written by Kirsten Robb. Republished with permission of <a href="http://www.domain.com.au" target="_blank">Domain.com.au</a>.

Retirement Income

Rise in over-60s divorce leads to new generation of renters

It’s not the youngest members of society doing it toughest when it comes to housing affordability, instead it’s the growing number of retiree renters who are struggling most. With the taboo of divorce diminishing, older people are splitting more often than they used to. Add in the fact we’re living longer and healthier lives, at 60 people feel like they have decades of life in them. A YourLifeChoices and The Australia Institute report, Retirement Affordability Index, looked at six retirement tribes – Affluent Couples, Constrained Couples, Cash-strapped Couples, Affluent Singles, Constrained Singles and Cash-strapped Singles – finding life very different for each group. Single retirees who rent spent 29 per cent of their income on housing, compared to couples who rent (22 per cent) and those who own their home (eight to 16 per cent). In Britain, a similar story is occurring with a study finding eight per cent of privately renting tenants being pensioners, amounting to almost a quarter of over-60s.

Retirement Income

How much renters need for a comfortable retirement?

Sydneysiders planning to live in a comfortable retirement in a rented home will need to save more than $1 million in superannuation, according to a report. The Association of Superannuation Funds of Australia’s <a href="https://www.superannuation.asn.au/resources/retirement-standard" target="_blank">Retirement Standard report</a> for December shows that the cost of living for a single retiree in a one-bedroom unit in Sydney is about $62,434 a year. For a retired couple in a rented two-bedder the annual cost of living is about $79,801. The report said that compared to annual Sydney living costs of $43,300 for single retired homeowners and $59,600 for couples. ASFA chief executive Martin Fahy says Sydney retirees planning to live a comfortable retirement in a rented home will need to save between $1.04 million and $1.16 million in superannuation. That’s about double the required retirement savings of between $545,000 for homeowner singles and $640,000 for couples. “Housing affordability and availability is a significant and increasing concern for many Australians and particularly impacts older Australians grappling with the private rental market,” Dr Fahy said in a statement. “All estimates assume people are enjoying reasonable health, so any serious illness or disability makes the situation even more challenging, as does rental instability and associated costs.” He warned that the current level of compulsory superannuation contributions at 9.5 per cent would fall well short of what was required to support a comfortable standard of living in retirement for anyone renting privately. First appeared on <a href="http://www.domain.com.au" target="_blank">Domain.com.au.</a>

Home & Garden

Our Partners

Over 60

News

Shop

Catalogues

Contests

Entertainment

Travel

Health

Lifestyle

Finance

Property

Games

Information

Keep up to date

Search

"Out-of-touch" Project stars slammed over clash with renter advocate

Stay or go? Most older Australians want to retire where they are, but renters don’t always get a choice

Homeowners often feel better about life than renters, but not always – whether you are mortgaged matters

What are your rights as an Airbnb renter in Australia? A law expert answers 6 common questions

Outrage after renters confronted with cleaning “scoring system”

RBA boss' blunt suggestion for struggling renters

Real estate agent fired over "disgusting" comments about renters

Room to Move: Desperate renters forced into backyard boxes

Desperate rental times call for desperate rental note-taking

Do tenancy reforms to protect renters cause landlords to exit the market?

Proposed rule change could save renters thousands

Renter left “violated” after routine inspection

Renters spend 10 times as much on housing as petrol. Where’s their cost-of-living relief?

Renter leaves hidden warnings to future tenants

“I wouldn’t want to buy even if I had the money”: The rise of renters by choice

Growing numbers of renters are trapped for years in homes they can't afford

Ideas of home and ownership in Australia might explain the neglect of renters’ rights

Why lifelong renters face financial stress in retirement

Rise in over-60s divorce leads to new generation of renters

How much renters need for a comfortable retirement?

Our Partners