Is immigration to blame for rent rises?

In Australia and other parts of the world, the cost of living is hitting most people hard.

Since the pandemic, the cost of food, fuel/ gas, rent and housing have kept skyrocketing.

I’ve written about this a few times. Last year, I wrote that many people planned on skipping Christmas presents to limit costs.

This year, things haven’t been any better. In February, interest rates had risen nine times since Labor came to power.

Renters are also hurting

Throughout this year, renters have found it harder to gain long – term and affordable accommodation.

According to the ABC, renters risk having insecure housing. Many tenants, who are forced to pay more rent, are also waiting for repairs.

Is immigration responsible for the rental crisis?

Is immigration responsible for the rental property shortage and inflation? Or are they just scapegoats?

According to the ABC, former Liberal Treasurer, Peter Costello claimed that immigration is great for Australia. However, i5 was putting pressure on the property and rental market.

Australia’s inflation has been rising rapidly since September. In that time, rents have gone up by by 2.2 per cent.Property prices have risen 1.3 per cent.

Rents have risen by 7.6 per cent; the highest rise since 2009. The Australian Bureau of Statistics (ABS) have claimed that rent prices would be worse without the government’s Commonwealth Rent Assistance.

Economist, Chris Richardson told the ABC that immigration wa# only “part of the inflation story”.

Richardson praised immigration for filling skill shortsges. However, he admitted that immigration played a part in exacerbating the rent crisis.

Reserve Bank Australia Michele Bullock said in a speech made similar claims:

Immigration, I think in general, is a good thing for Australia. It’s always been a good thing. Obviously, there’s contention for housing and things that the government has got to think about, but the concept of immigration in and of itself, I think, ultimately is a good thing — if it’s run well.

What are renters’ rights?

I think it’s important to point out legal rights renters have. Unfortnately, the Renters and Housing Union spokesperson, Monty Hill claimed:

A lot of people don’t know the rules… or understand the grey areas. They’re [the tenants are] not understanding that they can challenge these things and there is a process for that, outside of talking to the property manager or landlord.

Rights for renters and landlords vary from state to state, the Northern Territory and the Australian Capital Territory (of course they do!)

New South Wales

• Landlords can only increase rents once every twelve months
• Landlords must give written notice to tenants at least sixty days before a rent increase.
• Rents can’t be increased if a lease is fixed for only two years
• Landlords must not give vague reasons for the increase; i.e, ‘in line with the market’
• Tenants have a right to challenge rent increases within thirty days of getting the notice.

Victoria

• Similar to New South Wales, landlords can increase rents every twelve months on periodic rental agreements from mid – 2019 or later. On older agreements, landlords can raise rents every six months
• There’s no caps on how much rents can increase
• Landlords must give tenants a minimum sixty days notice before rents can increase
• Rental properties must meet minimum structural standards. These include:
  • Must have functioning deadlatches, with functioning locks. Outside must be able to be locked and unlocked with a key, and the inside be able to be locked/ unlocked without
  • Must have functional toilets, and bathrooms with adequate hot and cold water
  • Kitchens must have a dedicated food preparation/ cooking area. It must include a working stove top with at least two functioning hotplates
  • Windows need blinds or coverings in bedrooms and living areas. Tenants needto be able to lock windows
  • Working heater in main living area
  • Enough ventilation and adequate lighting
  • Update electric switcheboards with safety switches and circuit breakers
• Landlords must fix any broken windows or mould immediately. Tenants are responsible for making sure bathroom is properly ventilated
• When renters want to end a tenancy, they usually have to give the landlord twenty – eight days notice. In some cases, tenants can give a two weeks’ notice.
• If a landlord wants to end a tenancy, they must give ninety days notice. The landlord has to provide an adequate reason and evidence to evict a tenant

Queensland

• Landlords can increase rents every six months, provided they give tenants two month# written notice. However, in March this year, the Annastacia Palaszczuk’s government was planning to only allow the landlords to raise rents once a year. (I’m not sure whethe4 or not it changed).
• Rents can’t increase during a fixed term unless it’s stated in the agreement.
• Tenants can challenge rent increases by going to Queensland’s Civil and Administrative Tribunal.
• Since September, Queensland rentals have been mandated to be “safe, secure and functional”.
• Other mandates include, but not limited to:
  • Homes must be weatherproof and structurally sound
  • Properties must have doorswith external locks and curtains must be on bedroom windows
  • There must be functioning drainage and plumbing
  • Must have functioning bathrooms and kitchens.
• Landlord is responsible for ensuring that is their property is fit to live in. They are responsible for mould and other repairs. However, tenants and their associates are responsible for any damage they cause.

Australian Capital Territory (ACT)

• Landlords can only raise rents once every twelve months
• Tenants must be given eight weeks’ notice
• Details of rent increases must be included in fixed -term agreements
• The rate in which landlords raise rents must be in line with the Consumer Price Index
• Landlords can only can only raise rents in line with inflation, plus 10%.
• If a labdlord exceeds the rent increase limit and the tenant refuses the deal, the landlord must apply to the tribunal
• Landlords must ensure tha5 properties are inhabitable and be in a reasonable state
• Landlords have nine months to ensure energy efficiency standard for ceiling insulation is met
• Landlords are responsible for maintaining the property
• Landlords are responsiblefor urgent repairs if the damage puts tenants in potential risk of harm. This includes mould.
• Tenants must alert their landlord as soon as possible when repairs are needed
• Tenants may be responsible for maintaining gardens, smoke alarms and light bulbs.
• Generally, tenants in a periodic tenancy or who are leaving after a fixed – term lease must give the landlord three weeks notice. This doesn’t always apply.
• Tenants who break the lease clause may be required to pay six – weeks worth of rent or pay rent until a new tenant is found. However, limits may apply.
• Landlords can’t evict a tenant/s without a proper reason

Western Australia

• Landlords can only increase rents for fixed – term tenants outlined in the tenancy agreement, with details on how they’re calculated.
• Landlords can increase rents after giving tenants sixty days notice
• Rents can increase at six month intervals
• Within 30 days, tenants can approach the Magistrates Court to dispute rent increases
• All rental properties must be in reasonable condition
• Rentals need to have adequate safety and security: secure locks on doors and windows, outside lights, window fittings and working smoke alarms
• Landlords are responsible for urgent maintenance. They must comply with building and health and safety regulations
• Landlords are responsible for mould and mildew caused by faulty gutters, lack of ventilation or other faulty fixtures
• Tenants are held responsible for any damage they cause. They must arrange (and pay for) those repairs
• For tenants with fixed – term leases, landlords must give tenants thirty – days’ notice if they don’r ppt want to renew the lease
• For those in peroidic tenancies, landlords must give tenants thirty days’ notice if they’re selling the property. If they are ending the tenancy without valid reason, landlords must give tenants sixty days’ notice
• If a tenant wants to end a fixed – term tenancy, they must give the landlord thirty days’ notice. If a tenant wants to end a periodic tenancy, they must give the landlord twenty – one days’ notice.

South Australia

• Rents can only be increased once a year
• Tenants must be given sixty days’ notice before rents are raised
• If the tenant believes that a rent rise is excessive, they can contact the South Australian Civil and Administrative Tribunal
• In a fixed – term agreement, any rent increases must be outlined in the document
• Landlords must provide a clean and safe home for tenants
• Repairs that the landlord are responsible for include:
  • Satisfactory kitchen and bathroom
  • Plumbing, gas and electricity
  • Access to natural lighting and ventilation
• Landlords and tenants are both responsible for maintenance. Landlords are usually responsible for: replacing blown light bulbs, tap filters, garden work like pruning fruit trees. They also responsible for general repairs and must carry such repairs in a timely manner. Landlords must also keep homes free of mould.
• Tenants are responsible for: cleaning air conditioner filters and general garden maintenance
• To end a fixed – term lease, the landlord or tenant need to give the other party twenty – eight day notice. If no notice is given in the timeframe, the tenancy continues as a periodic lease.
• When a tenant wants to end a periodic lease, the tenant must give three weeks (21 days) or a month notice if the rent is paid monthly. If a landlord wants to end a tenancy for no reason, they must give the tenant 90 days’ notice (for a periodic lease). If a landlord plans to live in, demolish it, do major renovations or want to sell their property, they need to give tenants sixty days’ notice.

Tasmania

• Rents can increase once a year
• Landlords are required to give tenants sixty days noticed before they increase rent
• Rents can be increased in a fixed term, only if it’s explicitly outlined in the lease
• If tenants believe a rent increase is excessive, they can apply a review through the Residential Tenancy Commission
• Rental properties must be waterproof, clean and in good condition
• Rental properties must have:
  • a functioning toilet
  • kitchens that have a stove top, oven, sink and hot and cold running water
  • Safe and functioning power points. Electrical wires need to be behind walls or in the ceiling
  • Adequate lighting ( natural and/ or artificial)
  • Fixed heater — wood or heat pump — in the main living area
  • Blinds/ curtains
  • Adequate ventilation
• Landlords are responsible for maintenance. They must ensure the property remains in a satisfactory condition. Tenants must notify the landlord of repairs needed within seven days.
• Fixed period leases: if landlord wants to end a tenancy, they must give tenants 42 – 60 days notice
• Non – fixed lease: landlord must give tenant forty – two days’ notice that property will be sold, leased out to another person, renovated, no longer a rental property or a family member is set to move in

Northern Territory

• Landlords can increase rents once every six months
• Landlords must give tenants at least thirty days’ written notice before raising rent
• Landlords can only raise the rent if it’s stated in the lease
• Tenants can apply to the tribunal if they think the rent rise is excessive
• Properties must be habitable
• Landlords must ensure everything is in reasonable state of repair
• Landlords must adhere to health and safety regulations
• Landlords must ensure that properties have secure locks and other security measures
• Landlords must ensure rental properties are livable, allowing wear and tear
• Landlords are responsible for:
  • Burst pipes
  • Blocked toilets
  • Breakdown of services that are essential
• To end a fixed – term lease, landlords and tenants must give the other party at least two weeks (14 days) notice
• For periodic leases, tenants must give at least two weeks (14 days) notice
• However, if a landlord wants to end a periodic lease, they must give tenants six weeks (42 days) notice

Who do these State/ Territory regulations benefit?

At the bottom of the article, commenters alleged that when they complained to their State’s/ Territory’s legal body, they were evicted. Other conmenters lamented that the laws favour the tenants

While working on this post, here is the conclusion I’ve come up with. Australia has been behind in housing development. Australia isn’t ready for mass migration. That is not the fault of those who choose to live here. It’s the fault of governments.

Laws surrounding rental properties need to change. I believe they must be clear, fair to landlords and tenants and nationwide.

What do you think is contributing to Australia’s rental crisis? What do you think can fix it? Let me know your thoughts in the comments below.