REIA demands the rent

From the heart of the swarm:

The Real Estate Institute of Australia has already publicly stated that it understands how tenants are feeling at this time and that it has a responsibility and duty of care to look after, not only their interests, but that of the property owners and those managing and maintaining the properties.

REIA president Adrian Kelly reiterates there are some 3.3 million properties that are rented/available for rent across Australia.

“At the current median rent in Australia, this means that some $1,419 million would be collected each week to pay the owner, their bank and tradespeople to undertake repairs and maintenance,” said Mr Kelly.

“There are some 70,000 property managers, principals, real estate agents and representatives across Australia.

“Banks have already indicated they are offering customers the option to defer home loan repayments for up to six months.

“The calls to place a moratorium on evictions without  offering any  way for tenants to meet their rental payments means those maintaining and managing rental properties are at risk of not having any safety net for their incomes.”

Mr Kelly said in the case of property managers across Australia, some $141 million per week is at risk.

“Whilst some agencies have a business that covers sales and rentals there are many that are 100 per cent reliant on rentals for their commission-based income,” said Mr Kelly.

“Even for those that have the diversified income stream as sales contract, the reliance on rental commissions will increase.

“The impact is greater in regional areas particularly those that were impacted by the fires and floods at the beginning of the year.

Mr Kelly said the situation was further exacerbated by the inconsistent calls to offer assistance to commercial property tenants.

“The REIA has proposed a package of rental support to be administered through the current arrangement for  payment through the Corona Virus Supplement direct to property management agencies.

“If  Government were to accept this it would  mean a proportional payment could then be directed to the agency which would have enabled them to pay staff, their own rent  and outgoings.

“With the Corona Stimulus Package a couple with two children paying 30% of their Centrelink payment plus rent assistance would be able to pay $473 per week and still have $912 per week to live on.

“This is well above the Australian median rent of $430.

“It is only in Sydney and Melbourne that the median rents are higher at $510 and $500 respectively.”

In short, pay up you deadbeat scum.

David Llewellyn-Smith
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  1. Indeed….. and I suppose that MacroBussines has suspended all ‘pay up scum’ membership renewal notices coming up?

  2. Agents et al can just rely on the same government support packages, like other businesses that have had their incomes affected, right?

    If not, why not? Why should they be special?

    • They already do rely on government support. It’s called negative gearing. Every single one of these 70,000 property managers, principals, real estate agents and representatives are implicit beneficiaries of government subsidies.

      Time for a career change chumps.Tell them to learn to code.

      • Precisely, their loss this year will just be higher. They can claw back the loss from their payable tax.

      • Or just increase the rent. Remember without negative gearing they would be forced to increase rents. Time to test the theory that rents can easily be increased.

        • Depends how badly they also want to test their social licence to exist – ask every other industry how much fun that is to navigate (and it should be considered).

        • “Increase the rent” in lieu of NG??

          No no no, just “lower the purchase price”

          Rents are already maximised.

          Removing NG wouldn’t affect rents, but would put downwards pressure on property prices, which actually is a desirable thing….

    • We need to save these guys – urgently. Property is damn well 90% of the economy. If that goes up the spout we’re all fecked! 😉

      • It’s both the reason we should save them, and the reason we shouldn’t…

        Frankly, bankruptcy is our generous and merciful Capitalistic mercy – seriously…failing on debt used to have much harsher penalties, and that sucked.

        • The thing is though, the owners of the debt are the elites’ mates — thus all the bailouts.

  3. adelaide_economistMEMBER

    It’s only fair. I mean, I distinctly recall the REIA issuing instructions to its members during the various rent hike manias over the past two decades to show restraint and to not take advantage of tenants during the boom years.

  4. If the press release numbers are accurate that puts the couple with 2 kids receiving rent assistance on 72K a year. The heart of the swarm indeed.

    • The new improved “actually livable” dole introduced to hide how extremely cruel newstart is to all the lifters temporarily forced onto it is set for 1500 a fotnight I believe. That puts a single on 39k a year sans rent assistance, so 72k sounds reasonable.