Phil Spencer: Making it harder to evict tenants will hurt both landlords and renters

The Allan government’s move to make it more difficult to evict a tenant will only make it all the more difficult for them to secure a property amid a housing crisis.

The Allan-government’s latest property changes – making it harder to evict tenants without a genuine reason – are unfair to landlords and renters alike and will do nothing to increase rental availability.

These changes, coming on top of increased land tax, will only make it harder for renters to find a property in a rental market that is already lacking supply.

Property owners are already selling out of Victoria because of harsh taxes and regulations, making fewer properties available for rent.

That doesn’t help renters.

No normal government would release another round of tough, unnecessary and previously unannounced policies targeting landlords while there is a housing and rental shortage.

The government started the conversation around rentals with changes to items such as environment star ratings and airconditioning and cooling.

Now it is discussing removing the right of the owner to give a lease to a new tenant for a set period.

Making it harder to evict tenants will make it harder for them to secure a property. Picture: Flavio Brancaleone

At present, a new renter is in effect on probation because the landlord can end the tenancy at the end of the lease.

This is a system which helps protect landlords.

Under the proposals landlords will have far less scope to deal with trouble tenants – a particularly bad outcome for shared houses or blocks of flats.

The proposed changes will ultimately make it more difficult for renters because they will have to pass a higher test to secure a property as landlords and property managers will want trouble free tenants and take greater care in selecting them.

Other changes, including forcing landlords to prove why they intend to not release a bond payment, aren’t good for tenants either.

Owners are already having difficulty getting quotes for repairs for damages against bond claims – making it tougher on landlords assumes they have bottomless pockets when we know most are average wage earners who have been hit with higher interest rates.

The government says it is making these changes to “protect” renters but the raft of changes to property in Victoria have to date all been aimed at one thing – raising revenue.

Phil Spencer is the media representative for the Property Owners’ Association of Victoria

Originally published as Phil Spencer: Making it harder to evict tenants will hurt both landlords and renters