Welcome to 3AW. Skip directly to: Search Box, Section Navigation, Content.

3AW - Fairfax Radio Network

Wednesday January 7, 2009

What we're talking about

Hinch blog: Share your rental stories

Posted by: Derryn Hinch, 3AW Drive | 1 October, 2008 - 4:53 PM
It's a tough rental market out there

As if you didn't know, in tough economic times, the rent gougers are back in force.

And it's perfect weather for them. More people are renting. Vacancy levels are at their lowest in years. And for hundreds of desperate people their weekends go like this:

Scour the newspapers and the Internet. Pick out five possibilities that aren't really in the area of your choice but beggars can't be choosers. Look at the tope end of your price range -because anything lower is bound to be virtually uninhabitable. Put together your best 'ideal resident' submission and head out into the rental jungle.

You actually get to view the property. And eye off the other contenders. Maybe they've got kids. Or pets. Or the owners don't like people with beards. You're in with a chance.

But. And it's a crucial 'but' these days. You've forgotten that awful word 'gazump'. Hey agent says they want $350 a week. You've got your references. Submit your application. And you get gazumped. Somebody else offers $400. Maybe $450.

The owner enjoys the feeding frenzy and tells the agent to hold out for $495. After all, he or she, says. It's my place I'll go for whatever the market will bear.

Don't believe me? Then read Lisa Pascolo's letter in the Herald Sun today. She had her partner inspected two townhouses advertised for $380 a week. The agent said their application was excellent. One minor problem they'd have to increase their offer by $50 a week. They then went on the Net and found the same townhouses listed for rent on three sites at $380, $420 and $440 a week.

The $380 was a starting price. A come-on. Bait advertising. It's immoral but is it illegal?

Eighteen months ago the Real Estate Institute of Australia announced it was outlawing rental auctions. Sounded real tough. Rogue agents would be fined-even expelled. In February 2007 Victoria was the first state to bring in the new regulations.

Not only would rental auctions be stopped but agents would be banned from using a rental price range in advertising.

The REIV's Chief Executive, Enzo Raimondo said at the time: "The REIV is conscious of the need for estate agents to deal fairly and honestly with prospective tenants, and treat them with courtesy, especially in the tight residential letting market."

Well, eighteen months down the track, not much has changed. Of course owners will say: It's just market forces at work.

Blog comments Your Say

  • What I find most frustrating is the bind renters are in when they wish to vacate a property.

    Renters must give 28 days notice to end a tenancy agreement. I want to move in mid December but properties available at this time will not be advertised until early December. I am moving because the owner of my property refuses to do any repairs but remains happy to take my monthly rent.

    Either I give notice, then look for a new rental or I find a property and then give 28 days notice on my existing agreement.

    The first option is fraught with uncertainty and risk of homelessness, the second means I will pay double rent for up to a month - right on Christmas.

    Meanwhile, landlords line their pockets and the pockets of the Estate Agents.

    Cam Sunday 5 October, 2008 - 9:01 AM

  • The whole rental housing is a Rort as Agents,Landlords do as they please,minimal maintance & service,high rents,Taking advantaged of people in a situation they have no control over,You either pay or they will find some one that will.

    Ripped off renters Monday 6 October, 2008 - 8:26 AM

  • Now Governments are no longer interested in public housing they should open up more land for housing within a 35km around Melbourne. Forget about Regional areas where there are no jobs.

    Margie Monday 6 October, 2008 - 9:24 AM

  • Im a 31 year old mother of two children & currently pregnant. I recently had a stroke & ceased working fulltime due to my health.
    I could afford my rent but i fell behind for a week until i got a disability pension as income. My landlord sent an eviction notice after only bein (6 days) in arrears, then one week later i recieved mail addressed to my street address from my landlord so i opened it.
    Inside i found a reciept for the purchase of the house by the new owner who was planning on moving in before my lease was up.
    I rang the agent asking if my house had been sold and they assured me it hadnt and i could stay for three months until my lease was up.

    one week later i got a notice in the mail telling me to move out and i had 14 days, and there excuse was their receptionist had forgotten to send me notice a few weeks back when the house sold.

    Thanks to the good will of a local resident i managed to get a house a little cheaper of the same quality, in the same region but this isnt right, fair or legal.

    As i was pregnant and had recently had a stroke, i had no energy in me to fight for my rights.

    As a result of the landlords actions, i suffered financial strain and had to sell my car, my only means of transport to get to doctors appointments and the kids to get to school. The money from the car all went to cover moving in costs, rent and removalists fee's.

    Something has to be done about landlords bullying people out of there homes when they have legal rights.

    Dishonest Owners Tuesday 11 November, 2008 - 10:30 AM

  • I am a widow with a 13 yr old boy with aspergers syndrome. I have been given recently a letter from the realestate thatt my rental was going up $75. I though oh well I have been here for 2 years so that was to be expected. Then I re-read the letter and realised it was going up $75 per WEEK. I was paying $210.00 per week {real estate made $10 cheaper when I applied for it because it was in apalling condition} which I cleaned up. I have the residential Ministry coming this thursday to check out the house. It is nothing special and for the price that they now want I could rent somewhere better but I am getting over a hip op that I had in march.
    I thought that they could only put it up a certain percentage?
    Where do they expect us to find this extra money?
    Regards Julie

    Julie Schneider Tuesday 18 November, 2008 - 10:22 PM

  • Im 23 years old and i have to find a place to live asap my boyfriend is living in a tent or on the street we have applyed for property after property no one wants to rent us anything and noone will tell us why or what we are doing wrong im asking for help from anyone that can i dont get much money but with what i do get im willing to put it all to rent so i have somewhere to live with my boyfriend to put a roof over both our heads.

    Taya Tuesday 25 November, 2008 - 11:54 AM

Post a comment * Mandatory fields