Property expert Tabitha Robb has said the ‘mental load’ of dealing with tenants isn’t worth it
A property expert has lifted the lid on the “mental load” of being a landlord, and why dealing with tenants isn’t always worth it.
Landlord and property expert Tabitha Robb has said the “mental load” of dealing with tenants isn’t worth it for investors anymore.
The 37-year-old is a director at Prop Culture, self-described “property advocates” that buy and sell homes in Melbourne.
She explained that because of tenancy laws and the “onerous nature” of owning an investment property, she often advises clients not to become landlords because it isn’t worth the headache.
“Once upon a time it was sit and forget,” she told news.com.au.
“There’s so many standards now, and the mental load of carrying an investment property these days.”
Ms Robb said she received an email every fortnight from the property manager for her own investment property, which she rented out, about various issues.
She said she had even taken tenants to the Victorian Civil and Administrative Tribunal for not paying rent.
The 37-year-old said every third property she was selling now was a “past investment” because landlords were fed up with the stress.
Ms Robb is also a renter, and has seen her rent increase by 20 per cent.
She considered that a “huge amount” but understood why.
“I see it from both sides,” she said. “The landlords are pushing up the rent because so many expenses come with an investment property.
“I deter people from holding onto investment properties, especially if it is an apartment.”
Ms Robb owns two properties: a negatively geared house in Melbourne and another property that she rents out as an Airbnb.
She bought her first home when she was 22, studying at university and working in hospitality.
“It was a different landscape then. It was a lot easier to get a loan,” she said.
It was a two-bedroom apartment in Collingwood and she didn’t have a grand plan for it — but she was excited by the idea of property investment as “wealth creation”.
She sold the property seven years later and made about three per cent capital on it, even though she hadn’t done any major renovations.
“That is quite a good return rate for an apartment,” she said.
“If you need cash flow, you should buy an apartment, but you should buy a house for capital growth.”
Even though Ms Robb owns two properties, she still rents in Melbourne’s CBD and is focusing on wealth creation.
She wants to get more equity into her investments and eventually either sell or leverage them to buy her dream home in Melbourne.
“Everything just takes time and I have a plan,” she said. “Obviously I’d love millions of dollars to buy a beautiful house in South Yarra, but you’ve got to be creative,” she said.
Ms Robb is optimistic about real estate investing. She says it’s a “great way to build wealth” but understands it’s not the only way to make money.
“It is the game I know,” she said.
“If I was a stockbroker I’d have a massive share portfolio.”
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Ms Robb said that sometimes people have big inheritances, and some people like herself have to “grind”, but eventually, she thinks her property moves will pay off.
She said anyone looking to buy real estate right now should consider their five to seven-year plan rather than their immediate wants.
“People think about the here and now too much, in a transaction that has high costs,” she said.