Louise Elliot says Tenants Union of Tasmania is shaming property owners

Tasmania’s landlord lobby says the tenant’s union needs to back off and mind its own business, after it released a scathing report into the short stay sector. LATEST >>

View over Hobart towards the Derwent River in Hobart, Tasmania, Australia

The head of Tasmania’s landlord association says it’s no one’s business how much money a property owners makes, after the scathing report was released into the “myths” around short stay operators.

On Friday the Tenant’s Union of Tasmania released the report which showed most permit holders held property portfolios of more than $1m with the average worth for permit holders sitting at $2.6m.

It also said the majority of permit holders were Tasmanian investors and hosts of entire properties had property wealth more than 50 per cent higher than the average Australian’s combined household.

The union called for state and federal intervention to introduce more stringent regulations for the short stay sector.

But president of the Tasmanian Residential Rental Property Owners Association, Louise Elliot, said the union was shaming property owners who used their homes as short stay accommodation.

“They need to back right off and stop the demonising behaviour. This isn’t helpful for their cause,” Ms Elliot said.

Louise Elliot is president of the Tasmanian Residential Rental Property Owners Association. Picture: Nikki Davis-Jones

“How much an individual owner’s property is currently valued at is irrelevant.

“We don’t know their situation and it’s none of our business. It’s their property, they’ve worked hard, they’re not breaking any laws, and they’re paying their taxes.”

Ms Elliot said there wasn’t enough focus on other factors contributing to the housing crisis.

“Short stay is a contributor to our housing crisis, but by no means the only or major factor,” Ms Elliot said.

“The Hobart Council has already doubled rates to bring short stay property in line with other similar commercial properties and is pushing on with ending the ability to get permits.

“Is doubling rates and ending permits not enough?”

She also said some landlords had been put off by the rental market.

“Only yesterday I had a lady on the phone in tears about the harassment and vandalism of her property and all she’s done is applied for a permit, she’s not even operating,” Ms Elliot said.

“This morning an older gentleman who has one rental property down the Tasman Peninsula called stressed out as he is owed over $10,000 in rent and the tenants have abandoned the property and left a big mess behind, and they wonder why some people turn to short stay.”

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The Tenants Union of Tasmania says it’s a myth the majority of short stay accommodation hosts are homesharers, with a new report revealing most are Tasmanian investors with property portfolios of more than a million dollars.

The union analysed data from the Land Information System Tasmania, looking at 496 short stay accommodation permits issued in Hobart City.

The report said it was likely many properties were purchased with the intent to be used as short stay accommodation.

“Research by the University of Tasmania found that between June 2016 and January 2018, the number of properties advertised on Airbnb in Hobart increased by 250 per cent from 250 to 876 properties,” the report said.

“Of 496 properties surveyed, 298 were purchased since 2016, in other words during the rapid expansion of short stay visitor accommodation.”

The report showed most permit holders held property portfolios of more than $1m, with the average worth for permit holders sitting at $2.6m.

“Short stay accommodation providers continue to repeat the line that their hosts are everyday people who are sharing their home in order to stay afloat,” Tenants Union of Tasmania principal solicitor Ben Bartl said.

Principal Solicitor Tenants Union Ben Bartl at Hobart. Picture: Chris Kidd

“Whilst we recognise that hosts who are sharing rooms in their principal place of residence may be doing so to supplement their income, this is not true of investors who have bought up entire properties and converted to short stay accommodation.

“Our data demonstrates that hosts of entire properties have property wealth in Tasmania alone more than 50 per cent greater than the average Australian’s combined household wealth.”

The data also showed the majority of permit holders were Tasmanian, with 259 postal addresses for owners of Hobart permits located in Tasmania.

Meanwhile 24 were in Victoria and 23 were in New South Wales.

“[The data] has busted a few myths including that our housing stock is being bought up by mainlanders or foreign investors,” Mr Bartl said.

“This is not true with around seven out of 10 properties being owned by Tasmanians.”

Mr Bartl said it was also a myth that most properties were being snapped up by companies, with only 77 permits held by companies.

Mr Bartl said state and federal intervention was needed.

“Our research highlights the need for greater regulation of short stay accommodation at a state level and the removal of tax concessions for property investors at a national level,” he said.

“Housing should be recognised first and foremost as a home, not a means of growing wealth.”