Victorian Property Investor Calls for Scrutiny of Real Estate Agents in Housing Crisis
A Victorian property investor has accused real estate agents of contributing to the state's housing crisis by actively discouraging long-term leases. Jenny, a landlord from Wangaratta, claims agents prioritize short-term leases to maximize commission fees, even when landlords prefer longer leases to maintain stable tenancies.
Jenny's experience highlights a potential conflict of interest between the financial incentives of real estate agents and the desire of landlords to secure long-term tenants. While the Real Estate Institute of Victoria (REIV) has proposed tax reforms to encourage longer leases, Jenny believes that addressing the role of real estate agents is crucial to tackling the housing crisis.
Landlord Emma from Ballarat echoes Jenny's concerns, stating that the rising land tax burden makes it difficult to retain long-term tenants. She welcomes the REIV's proposal for land tax discounts based on lease length, but emphasizes the need for a comprehensive solution that addresses the practices of real estate agents.
REIV chief executive Kelly Ryan acknowledges the prevalence of long-term leases in other countries and suggests adopting similar practices in Australia. He proposes incorporating provisions for tenant responsibility in maintenance to incentivize longer leases and provide tenants with a sense of ownership.
The Victorian government has been contacted for comment on the proposed tax reforms and the concerns raised by landlords regarding the role of real estate agents in the housing crisis.