Some landlords in our state are choosing to sell up rather than try to meet new minimum standard laws that came into effect at the end of March.
Punchdrunk by COVID, there are landlords struggling with getting the money together to bring their rental properties up to the new standards and if they sell there are more fears it will worsen the current rental crisis.
After struggling to collect any rent through COVID or insurance for loss of rent they are now faced with having to spend up on their investment.
Stockdale and Leggo CEO Charlotte Pascoe told Domain that landlords from the outer-eastern suburbs of Melbourne were particularly keen to sell.
“Our Langwarrin office has received 20 requests from landlords wanting to sell,” Ms Pascoe said.
“It’s just diabolical, it’s huge. Many of them are in really tough situations, and people think because they are landlords they have a fancy car and lots of cash when they could be 100 per cent reliant on their rents to pay the mortgage.
“All of this is going to make it harder for tenants because there will be fewer properties and rents will go up because of it.”
Under the new Victorian Government standards, properties are required to fulfil the following criteria:
- Have lockable windows and external doors
- Have a kitchen and toilet
- Have window coverings in bedrooms and living areas for privacy
- Provide a fixed heater and by 2023 it must have a two-star energy rating
- Have a shower head with water saving rating of at least three stars
- Gas or electric appliances must be checked every two years
- Have proper switchboards with circuit breakers