Sydney renter Renata sparked calls for a two-way rental system that could give tenants more information about the people they rent from. (Source: Supplied/Getty)
Landlords have hit back against a controversial request to provide tenants across the country with information about their finances and rental history. The call came from beleaguered renter Renata, who is facing the possibility of a second eviction this year after two of her landlords fell on hard times and had to sell the homes she was living in.
A poll of more than 7,000 Yahoo Finance readers found 54 per cent said renters deserve “absolutely nothing” from landlords. Many homeowners got in touch with Yahoo Finance about the proposal and echoed the sentiment that they don’t owe anything to renters.
Tracey, who is in her 50s and bought her investment property three years ago, said this request is completely uncalled for.
RELATED
“Under no circumstance should a tenant have access to a landlord’s personal or financial information,” she told Yahoo Finance.
“That is not their privilege. They get the roof over their head, and they sign a contract.”
Tracey’s main gripe was that she’s had four different tenants in three years, has dealt with rent not being paid on time, numerous repairs, and a nervous breakdown due to her rowdy renters.
The thought of giving information related to her finances to possibly unscrupulous characters left her very uneasy, which was echoed by other landlords.
“They should not have the landlord’s information as this leads to harassment from tenant to landlord,” wrote Heather.
“If the tenant wants to misbehave, then they should go and let the landlord have a nicer tenant.”
Do you have a story? Email stew.perrie@yahooinc.com
Landlord Michael said he would sell his properties if he were forced to hand over information about himself.
“They either want a place to live or I’ll get someone else,” he told Yahoo Finance.
Jo also called for a bit more compassion for people like them.
“We forget landlords are people and they have issues too,” they said.
“There are a lot of landlords who are mum and dad investors. They are helping the government provide housing. The banks are the ones who check to see if they can afford to service the loan and investment property, otherwise, they will not lend the money.”
But some homeowners backed the idea of giving references to prospective tenants from their previous residents to prove they’re a good landlord.
Story Continues
“I agree that tenants have a right to protect themselves from potentially bad landlords as well, which is why we have RTA and other government bodies,” Queensland homeowner Jeremy said.
“As a landlord who values privacy, I don’t want tenants seeing my list of investments, but a verifiable system that gives a rating would be okay.”
Caroline, who has her investment property fully paid off, welcomed the idea of a two-way street for renters and landlords.
“Maybe an agent-based statement about how much a property is mortgaged for, and general intention of the owner [would be good],” she told Yahoo Finance.
That Yahoo Finance poll showed 34 per cent of people supported having landlord references become a norm in the rental system.
This idea gained a lot of traction back in 2022 after Aussie comedian Tom Cashman asked for references from previous tenants for a property he applied for.
Sadly for him, his application was rejected.
Leo Patterson Ross, CEO of the Tenants’ Union of NSW, suggested Australia could adopt a system similar to Scotland, which requires landlords to get a license.
Once approved, these investors are placed on a database, and people can look them up to see if there are any complaints lodged against them.
Renata was forced out of her Sydney rental of four years in January after her landlord hit financial difficulties and put the unit on the market.
She was able to find another apartment in the same building and has been there since February.
But in August, she was told by her property manager that the homeowner had lost their job and would be selling the home.
The situation left her furious, and she wanted the rental system updated so that it’s a two-way street.
At the moment, prospective tenants have to send over their payslips, bank statements, tenancy references, and some even have to hand over marriage certificates, medical histories, and complete personality quizzes.
Renata wanted to see landlords provide people with similar information so they can know more about the person they might be renting from.
“We need to know if you’re renting out one property or multiple properties, and how you’re affording it,” she said. “Because whenever something happens, we are the ones who have to look for somewhere else to live.”
Admittedly, even if she had the details from her two landlords, it would have been almost impossible to predict that they would fall into money troubles and be forced to sell.
However, she would have been able to see how leveraged they are with their investment properties and how long they might last if they lost their jobs or had unexpected debts to pay.
Get the latest Yahoo Finance news – follow us on Facebook, LinkedIn and Instagram.