Pensioner forced into the cold after rent price hike

With just $20 left after bills, a Mount Gambier pensioner has been forced out of his home after being faced with a massive rent increase.

A Mount Gambier pensioner has been forced to relocate and lean on his family after his rent was set to rise by nearly 40 per cent.

Paul Sundstrom knew he would have to fork out extra when his lease was up, but was shocked to see it was going to rise by $80 a week.

Mr Sundstrom has complex mental health issues stemming from childhood trauma.

He receives about $900 a fortnight from his disability support pension, but after rent, utilities, administration fees from My Aged Care and regular costs like groceries he only has $20 to spare.

Paul Sundstrom who lives off a disability support pension has been forced to lean on his sister and find a new place to live after his landlord jacked up the rent by $80. Picture: Arj Gansan

Mr Sundstrom said the ongoing rental crisis and lack of supply meant renters were at the “mercy of the landlord”.

“They’ve turned into a sort of a God — they know there is a limited market,” he said.

“(They can say) shut up and pay it or go.”

A recent application to a nearby retirement village was turned down, leaving few prospects for Mr Sundstrom’s future accommodation.

“(My landlord) knows I’m on a pension, knows I’ve got disabilities and knows I can’t afford this sort of increase,” he said.

Interstate buyers and a booming market has seen both rental and house listings skyrocket in price.

Since January, the cost of renting a unit in Mount Gambier increased 4.7 per cent, while house rental prices increased by 7 per cent.

Mr Sundstrom said the crisis was so bad his son was unable to find stable housing despite being a category one priority with Housing SA.

Mr Sundstrom’s son, Christopher, said the situation felt hopeless and put incredible strain on him as he is the primary caregiver of his two young children.

Paul Sundstrom's son, Christopher, has been on the Housing SA waitlist for six months and has been forced to board with his mum, while raising two kids. Picture: Arj Ganesan

Christopher said he has “pretty much no chance” of finding a private rental and called on the government to fix the vacant Housing SA houses.

A SA Housing Authority spokesperson said of the 41 public houses vacant in Mount Gambier, 31 are currently undergoing maintenance.

Human Services Minister Nat Cook said the state government had approved 16 properties for public housing with 10 going to tender in July.

Currently there are no limits on how much landlords can increase rent by.

Legal Services Commission lawyer Chris Stone said tenants who thought rental increases were “excessive” could apply to have their case reviewed by the South Australian Civil and Administrative Tribunal.

“Although there is no formal mediation process, the parties should attempt to resolve any dispute through discussions rather than through a formal application to SACAT,” he said.

“A tenant should be encouraged to raise any concerns over rent directly with the landlord or agent and to put those concerns in writing.”

Mr Sundstrom hopes he will be able to secure a new property with financial assistance from his sister.