Landlords’ huge rent increases as tenants face living on the streets

Neil Jenkins had expected a rent increase. But he wasn’t prepared for the massive jump in rent or face being kicked out. And there’s nothing to stop such “predatory” moves. VOTE IN OUR POLL

Tenants are being told that if they don’t agree to expensive rent increases within a matter of days, they’ll be kicked to the kerb by Christmas.

According to the latest Residential Tenancies Authority (RTA) data, median rental prices have soared to five-year record-highs across almost all Queensland suburbs, creating a tighter market than ever before.

And with no legal monetary cap on rent raises, landlords have started to reap the rewards.
Tenants like Neil Jenkins have reported hefty weekly rent rises, with some given just days to sign a new lease or face an eviction notice.

Mr Jenkins copped an almost $100 rent raise in his latest North Lakes lease renewal, which he says feels “predatory” rather than interest driven.

“We’ve lived there for three years and our previous two rent increases were only $5 so that’s how quickly it’s changed, $5 to $95 in one hit, so we’ve gone from paying $435 a week to $530,” Mr Jenkins said.

“I feel like the price rises are more predatory rather than interest driven, it’s like landlords are going ‘I can get that, so I will charge that,’

“But that’s the story everyone’s telling, you can’t do anything about it, you do have options to go to RTA and get it (rent price) negotiated if you think it’s excessive, but you’re not going to get much out of that.

“Because the reality is, they can boot you out and get another person in within five seconds and you're out on the street.”

While Mr Jenkins had expected an increase, he was most surprised to be given only seven days to renew his lease, or risk being issued a leave notice.

He said it was proof landlords and real estate agents were taking advantage of Queensland’s high rental demand, leaving most tenants with no choice but to accept a hefty rent rise.

“When we got the email to say the rent was increasing, it said we had seven days to sign, which was like a threat (of) being issued a notice to leave,” he said.

“They're not breaking a law there but they are using these tactics to lock people in because, again, they have nowhere to go.

“Real estate agents have gone for the max increase with max commission, and I know that’s their business, getting the most money for their landlord. But they're not considering the family on the other end.”

Mr Jenkins is not the only person to be weighed-down by the price hike.

Social media has become flooded with comments from Queensland tenants comparing their latest weekly rent increase.

Kerry Elzomor wrote: “Our last one was $100 a week increase to $725. We decided not to renew and almost became homeless in the process. They advertised it for $825 and got an application immediately at that price.”

Maria Cossia said her rent “ridiculously” increased from $430 to $620 while Michaela Morris was able to negotiate her landlord down to a $110 increase.

“We just got a $110 increase. No idea how that’s feasible but the real estate wouldn’t budge. They originally wanted a $130 increase, $110 was the ‘negotiation’, she wrote.

Others, like Morgan Hnatiskyj, expressed their annoyance with the seven-day deadline.

“$100 a week increase and 7 days to sign or a notice to vacate would be issued. They know they have renters over a barrel at the moment.”

Meanwhile Jessica Stevens claimed she was given a mere four days to decide to renew her agreement.

“We got told if we didn’t sign it in the next 4 days they’d give us a 60 day notice to leave,” she wrote.

The RTA confirmed that under the Residential Tenancies and Rooming Accommodation Act 2008, landlords can only raise rent prices every six months or after a two-month period for tenants on periodic agreements.

However, there is nothing in the Act that specifies how much rent can be increased by, and the Queensland Government is not planning to change that rule any time soon, despite calls for caps to be placed on landlords.

A spokesman from Queensland’s Department of Communities, Housing and Digital Economy said placing a cap on rent increases could pose a risk to Queensland’s rental “supply and affordability”.

“Economic research suggests that the introduction of rent control measures requires careful consideration and analysis of the impacts and unintended consequences of any reforms,” they said.

“There is a risk that strict rent controls can reduce supply, quality and affordability of rental stock.
“Queensland’s legislative and policy reform is ensuring we have the right regulatory settings to protect consumers and give investors and service providers confidence to participate in Queensland’s housing market and systems.”

Fortunately, Mr Jenkins and his wife both are working full time, so the current rent-rise won’t “break their bank just yet”.

It will however, limit their ability to save for a house deposit.

“That’s where we've been stuck,” he said.

“We’re saving hardcore, saving every spare cent we have for a deposit while paying this dead money that's almost the same as mortgage rates.

“But a house deposit is now the only way we see ourselves getting out of this.”

Rent cannot be increased during a fixed term tenancy unless:

• The agreement states the rent will be increased
• The agreement states the new amount (or how it will be worked out) the property manager/owner gives the tenant at least two months’ notice in writing
• It has been at least six months since the tenancy started or since the last increase.