NSW rental crisis: vacancy rates plunge as tenants reveal ‘insulting’ landlord tactics

A single bed in a shared studio, a sunroom with a bed in it and a bed with only a curtain for privacy are just some of the rental horror stories facing Sydneysiders.

NSW’s rental nightmare has been exposed by both new figures, revealing the crippling shortage of homes available for lease, and how it is generating an outrageous trend where tenants are encouraged to cut costs by turning living rooms, study nooks and sunrooms into “bedrooms”.

With no end in sight to the shortages, even a mattress on a floor has been offered for “rent” for $210 a week to share a studio apartment.

New PropTrack figures show Sydney’s vacancy rate hit 1.54 per cent at the end of April, down from 1.59 per cent in January and nearly half the rate it was in 2020.

The low supply of rentals at a time of soaring tenant demand saw rents climb 12.1 per cent annually.

As well, Master Builders data showed the total number of new homes approved for development hit the lowest level in over a decade over the first three months of 2023.

For $210 a week this listing offers the chance to rent a single mattress on the floor.

The Property Council of Australia warned the government must match its large migration intake with a focus on housing investment and better planning.

The budget highlighted net overseas migration would amount to almost 1.5 million people over the next five years, while dwelling investment levels were predicted to drop from a forecast -1 per cent growth to -3.5 per cent in 2023/24.

This bed in West Ryde is connected to another shared room with just a curtain for privacy.

Property Council chief executive Mike Zorbas said the issue of housing lingers as a major handbrake on the necessary flow of skilled migrants, and the quality of life for all Australians.

More than 55 per cent of Australian renters polled by Rent.com.au this week said they felt ignored by the 2023-24 federal budget, with a further 25 per cent saying the measures don’t go far enough.

Initiatives in the Budget ­included a raise in the rent assistance cap, an increase in the supply of social and affordable housing and tax incentives to promote build-to-rent.

Away from government promises, Cheryl Gibbons recently experienced Sydney’s rental crisis as black comedy.

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When Ms Gibbons received a $500 per week increase on her already high Zetland rent, her property manager suggested turning her small study nook, or part of her lounge room, into another room to make up the difference.

“It surprised me that they would think suggesting such a thing is helpful, it’s more insulting,” Ms Gibbons said.

“It is likely I will be packing up and moving back to Queensland where my family is from. Sydney is becoming impossible.” Her property manager told her it was a “creative” solution and has worked for other tenants.

Cheryl Gibbons was horrified when her landlord suggested she turn this nook into a bedroom.

Facebook Marketplace and flatmate search websites are inundated with listings of similar “creative” solutions.

Makeshift “bedrooms” are often advertised for upwards of $200 per week, created from study nooks, sunrooms and even living rooms, with just curtains and room dividers for privacy.

For $210 a week in Meadowbank one lucky renter is given the opportunity to rent a single mattress on the floor, sharing a studio apartment.

For $200 a week you can get a bed in a sunroom attached to a house in Beverly Hills, while $150 will get you a single bed in a study nook with a curtain for a door in West Ryde.

This sunroom in a Beverly Hills home was converted into a bedroom for $200 per week.

NSW Greens MP Jenny Leong, who is campaigning for a freeze on rents, said these tactics come with genuine health and safety concerns.

“Using closed in balconies, study nooks, or common areas as bedrooms is forcing renters into substandard living conditions,” she said.

“This is a clear example of the blatant profit motive from property investors and real estate agents who are cashing in on the rental crisis.”

NSW Greens MP Jenny Leong is campaigning for a freeze on rents. Picture: John Appleyard

Property Owners Association of NSW President John Gilmovich warned these types of tactics could be on the rise.

“We have heard of this. It’s absolutely against current regulations, it isn’t safe for tenants and definitely not what we would recommend any property owner should do,” he said.

“However, with threats of rental freezes and governments trying to take more control over privately owned properties we’re seeing more of this covert, dangerous and dishonest behaviour.”

As rents rise and tenants are asked to make compromises to keep their lease, thousands of tenants have flocked to Facebook groups to seek advice and warn others of dodgy real estate agents.

But seeking help has come at a great cost to some, with one anonymous tenant taking to social media to ask for advice when her property manager suggested she convert her living room to a bedroom, restricting access to the kitchen for the other tenants.

When the tenant asked if it was a good idea, the post was tracked down by the landlord who took to social media to claim the tenants would no longer have a home in that property due to “making fun” online. The Tenants’ Union NSW has warned renters to seek professional advice and stay away from social media because of the risk of retaliation from landlords.

NSW Better Regulation and Fair Trading Minister Anoulack Chanthivong blamed the previous government for creating an “unfair system” the new government has ­inherited.

Renters facing excessive increases or an uninhabitable property should apply to the The NSW Civil and Administrative Tribunal, he said, adding that NSW Fair Trading is carrying out regular enforcement operations.