On 8 MayĀ 2026Ā our rentĀ willĀ increase by $110, to $750 per week. They only offered a new lease for one year, instead of our usual two years.Ā
TheyĀ are able toĀ increase rent during a 2 year lease but need to indicate by how much.
So, if in 2027 theyĀ want toĀ increaseĀ byĀ an astronomical amount,Ā they'llĀ now be free to do so, rather than locking in an amountĀ today.
Owners can only increase rents annually, instead of every 6 months (as used to be).
Government mandated thatĀ under the guise of supporting tenants,Ā insteadĀ weĀ areĀ be paying higher rents for longer &Ā itĀ pushesĀ up rent pricesĀ earlier and faster.
Government & agents get more dollars via taxes and fees that way. Real estate agents are paid a percentage of rental income to manage the property (as well as on property sales commissions). Plenty of self-interest for them to encourage owners to increase rents.
When rent is increased, we need to top upĀ theĀ bond money held.Ā For example, we'll need toĀ pay anĀ added $440 for the top up thisĀ time.
In Western Australia, rental bonds are held by the Bond Administrator, which is an independent government body.
Government willĀ be earning on those dollars, we don't get anyĀ interest or investmentĀ earnings on that bondĀ (dead money to tenants).
Quite the "system" huh?Ā š”š¤¬ā¤ļø
When interest rates were increased, each time we paid a monthās rent in advance to support our property owners with a lump sum.
We have fixed all small repairs ourselves over the years and paid for tree cutters, a new fence, helped buy roller shutters, bought new pads for the evaporative cooler and fixed a collapsing carport ceiling, plus many more things over the years. That stops now.
Any small thing that wants fixing will involve a call to the agent.
The 3 months rent we have in advance will now be pulled back to only a week in advance, so weāll pause our rent payments till 28 May, 2026.
We were generous during all the years when things were tough for landlords. Now the tables have turned yet a little kindness is not afforded us.
Heck, we didnāt even take advantage of the rental moratorium during covid.
Having bought this place in 2005, Iād say itās well paid off by the property owners.
Particularly with negative gearing, which occurs when you borrow money to make an investment and the ongoing expenses of that investment are greater than the ongoing income you receive from it. In this scenario, you can deduct this loss from your total taxable income each financial year.
We are very generous people, however weāre not willing to be exploited to that extent.
I understand that they want to stay ahead of the inflation curve and that āthe systemā rewards this behaviour. Yet reciprocation can still ābe a thingā (even if only a little).
Another lesson learned, i.e. not everyone thinks the way we do.
As for the option of moving⦠have you seen the state of the rental market in Perth or Australia? As for migrating⦠no one would have us at our ages with a pensionerās income.
Thanks for listening to my little rant! I feel better now. Hope you didnāt mind being dumped on.
This too shall pass.
š š š š LOL
