Rent increases and costs rising for desperate tenants in Sydney and Zetland

Huge rent increases in inner city suburbs like Zetland - in some cases by hundreds of dollars - are leading to landlords terminating leases when renters question the hikes.

Tenants being evicted at the end of their lease for merely wanting to negotiate a fairer rental was “outrageous”, the State MP for Heffron Ron Hoenig says.

His comments come in the wake of drastic rent increases in inner city Sydney suburbs like Zetland - in some cases by up to 35 per cent, or hundreds of dollars and landlords terminating leases when renters question the cost jumps.

Mr Hoenig said many renters had approached him, desperate about the jumps in rental costs.

“I am very concerned about these huge increases in rent when some of these increases can’t be justified,” he said.

“While landlord costs have increased, they must approach rent adjustments fairly and must negotiate a fair outcome for tenants.

State MP for Heffron Ron Hoenig is concerned about the rental spikes. Picture: John Appleyard

“It is outrageous that tenants are evicted at the end of their lease merely for wanting to negotiate a fairer outcome.

“Landlords need to be reminded that good, long-term tenants are to the landlord’s financial benefit and history tells us when there is gross unfairness, you can risk future intervention.”

Renters in Zetland have inundated social media about having rents rise suddenly and being evicted.

Under NSW laws, if a rental agreement does not specify a fixed-term or the agreement is on a continuing (periodic) tenancy, then rent can only be increased once in a 12-month period.

And in that case, landlords must give tenants at least 60 days written notice.

Jana, who lived in an apartment at on the border between Waterloo and Zetland, said she’s been forced to leave as her rent rise was too expensive.

She and her partner began renting a two-bedroom apartment in October last year for $640 a week, which she understood at the time was a good price during the pandemic.

A rise in cost of living and increased mortgage rates are putting pressure on the Australian housing market.Picture: Getty Images

“But it wasn’t anything flash, and we had a lot of mould issues that were in the bedroom, that we could not get fixed, it left a sour taste in our mouth,” she said.

“There were other issues as well.

“So when they said they would put the rent up to $850 a week, a $210 increase, we asked if we could get a reduction. They agreed to $830, but we could not afford that either.” She’s now moving to Annandale.

Caroline, who had been renting in Zetland, but is now buying an apartment, said she had lived in the area for at least seven years and believed the price hikes were a catch up from the reductions during Covid, plus inflation.

“I think some people haven’t realised the pre-pandemic costs to live here.”

Laura, another renter from Zetland, also had mould issues with her apartment and said it was “outrageous” her landlord had increased the rent from $850 a week for a three bedroom flat, going to $950 last year and then an astonishing $1100 a week.

So she moved to a Meriton apartment in the same suburb for just $750 a week.

The Perrottet Government, which has responsibility for regulating tenancies, has been approached for comment but has not responded by deadline.

Federal Housing Minister Julie Collins said the Albanese Government had a strong set of policies to address the issue.

 “It is very concerning that more and more Australians are struggling to affordably rent a home,” she said.

“We’ve acted quickly by unlocking up to $575 million available to invest in social and affordable housing.

“We will introduce a National Housing Supply and Affordability Council to ensure the Commonwealth plays a leadership role in increasing housing supply and improving housing affordability.”

She said there were also plans for a new National Housing and Homelessness Plan to tackle “rental affordability challenges”.

“The Government has already convened two meeting of State and Territory Housing Ministers to discuss and advance these plans, the first such meetings in almost five years,” she said.