Landlord defends $100 Xmas rent increase video

A Perth landlord has defended her actions after she shared her decision to increase a single mum’s rent by $100 a week in a viral video.

A Perth landlord has defended her actions after she revealed she would increase a single mum’s rent by $100 a week in a video that has now gone viral.

In the video, posted to social media on Sunday, the Perth landlord explained she decided to increase the rent of one of her four rental properties which is leased to a single mum with two children.

“I decided to increase the rent by $100 a week for my tenant, who is a single mum with two kids, on the basis a reasonable rental increase would have been an extra $140 a week,” she said in the video.

“I recognise that she probably couldn’t afford that. So I came to the conclusion that $100 would be a very good deal considering the suburb and it would be one of the cheaper rentals on the market.”

However, when she informed the property manager of her plans to increase the rent, she was told the mother “wouldn’t be able to feed her kids and she will be in severe financial difficulty” if she passed the increase onto the tenant.

“So now I’m in a position, do I subsidise the tenant’s rent and cop it out of my own pocket as a result of a housing crisis orchestrated by the current and previous government, or do I tell this tenant she can’t afford this particular suburb and she should look for somewhere more reasonable,” she asked.

Ultimately, she said she made the “really difficult” decision to go ahead with the increase after conducting further research.

“The rent is still $30-$40 per under market value. Now I’m learning you can’t mix emotions with business,” she wrote.

The landlord explained her decision to increase the rent by $100 a week. Picture: X@ausstockchick

She said the rent is still $30-$40 per under market value. Picture: X@ausstockchick

The post was quick to receive backlash on social media, with some accusing the landlord of being ‘greedy’.

“Jesus, I cannot imagine increasing a rent by $100 a week- that would ruin anyone, let alone a single mum. What are you thinking of? Have some ethics,” said one person.

“The absolute gall to say you’re subsidising the tenants rent when the core issue is you can’t afford your investment without someone else’s income,” said another.

“How could you,” another person commented.

However others defended her decision, arguing she was not to blame for the ongoing housing crisis grappling the country.

“You’re not running a charity [at the] end of the day,” one person commented.

“Landlords should not be forced to suck up rate rises,” said another.

“It’s the government’s fault. They’re trying to offload responsibility to landlords, who are not ‘filthy rich,’ as widely believed. Paying out of your own pocket may be a short-term fix and provide moral/emotional satisfaction. But it will cause the problem to worsen over time,” another person wrote.

Speaking to news.com.au, the landlord defended her initial decision to raise the rent, saying she “didn’t increase the rent much last year”.

“I don’t think that I’m being greedy, because being overly compassionate has put me in this situation in the first place,” she said.

“I didn’t increase the rent much last year, to be kind. Now I’m in a position where it looks like it’s a hefty increase.”

“Rents are going up, my costs, insurance, land tax is going up. How much longer do I should I subsidise someone? … Do I take into account each of my tenants circumstances and assess it by their circumstances? Or do I just be fair across the board? That’s where the emotion and the business side comes into it.”

She added she hasn’t confirmed with the property manager if the rent increase will officially go ahead after the lease expires in January, saying she’s still “struggling” with the decision.

“I want to help people, but how far can I go out of my own pocket to help people without making myself have to work more … How much should I keep subsidising when I have a family of my own?”

She said she originally shared the video to spark a conversation around tenants and landlords during the housing crisis and wants to see the government do more to provide solutions.

“It’s become landlords versus renters … I think there needs to be a solution to work together to make sure landlords are being fair and tenants are looked after to fix the housing crisis. The government kind of doesn’t want to take the blame. It [says] it’s the landlord’s problem but I don’t see how it’s kind of my fault that my costs have gone up, because of decisions that are outside of my control.”

It comes after damning data from National Shelter and SGS Economics and Planning shows property affordability has plummeted across Australia in the last 12 months.

Every capital city, except Canberra and Hobart, is less affordable than it was a year ago – and renters are worse off than they were in 2019.

In more unwelcome news for renters, PropTrack’s Property Market Outlook for December 2023 predicted rents will continue to rise off the back of low vacancy levels.

“Following the end of lockdowns, demand for rental properties cooled and the vacancy rate steadily rose over 2022,” PropTrack economist Anne Flaherty told news.com.au.

“The situation is now deteriorating again in the regions, with vacancy falling over the past six months, reaching 0.98 per cent in November, below the level seen in capital cities.”

Senior economist, Elanor Creagh, said the “release valve” Australia’s rental crisis needs is a significant increase in the supply of available rentals.

Unfortunately there is nothing meaningful on the horizon to suggest this will happen.

“With continued strong demand to rent, tight rental markets and upward pressure on rental prices are likely to remain in 2024,” Ms Creagh said.

“The good news is that conditions are unlikely to deteriorate at the same pace as they have in 2023.

“Challenging rental market conditions have likely incentivised those with the means to purchase sooner than they otherwise would have.”