Landlord blames real estate agents for housing crisis

A landlord in Victoria says real estate agents play a role in the state's housing crisis. They argue that the practices of these agents should be examined more closely. This week, the Real Estate Institute of Victoria (REIV) suggested changes to land tax rules. They believe these reforms could ease financial pressure on landlords who offer long leases. Land taxes are increasing, leading some landlords to pass these costs onto renters. In Australia, rental agreements typically last between six months and two years. The REIV proposed discounts on land tax for landlords who sign longer leases, including 10% for three years, 20% for five years, and 45% for ten years. This aims to keep properties available for rent and prevent them from leaving the market. Jenny, a landlord from Wangaratta, expressed concerns that real estate agents discourage long-term leases. She moved her property to a different agent because her previous one refused to help with a two-year lease for good tenants. Jenny wants to keep rents low for stable tenants but feels agents are more focused on earning commissions from frequent leases. She noted that even offers to reduce rent were not welcomed. Scott Petrie, a real estate agent in Ballarat, stated he supports two-year leases for responsible tenants. However, he believes leases longer than that can lead to complications due to changing circumstances over time. Tenant and landlord needs can shift, making long commitments challenging. Another landlord, Emma, indicated she would extend her tenant's lease if it meant a reduction in land tax. She mentioned that rising land values and increasing rent have made it difficult for landlords. REIV chief executive Kelly Ryan pointed out that longer lease terms are common in some European countries. He believes that allowing renters to handle some maintenance responsibilities could increase their sense of ownership over their homes. The state government has been asked to provide comments on the situation.