Ann Wason Moore on Gold Coasters subletting their rentals on short-term rental sites

Tenants have been caught using this sneaky rental tactic to turn a profit and neighbours say it is bringing shady characters into once-quiet suburban streets.

Is it a scam? Is it smart? Is it sly?

It’s subletting … and maybe it’s all of the above.

Subletting, where an existing tenant re-rents part of the property to a new third party for a portion of the lease contract, is legal under certain terms and conditions, but it’s taken a dark turn in this twisted property market.

According to the Residental Tenancies Authority, if a tenant would like to sub-let a room in a rental property, they must get written permission from the property manager and/or owner. Approved occupants should also be listed in the special terms of the tenancy agreement.

Once approved, the head-tenant continues to be responsible for the tenancy, whether or not they are living in the premises. They are responsible for the actions of any subtenant, including unpaid rent or damage to the premises.

So, that’s how it’s meant to work.

Ann Wason Moore on Gold Coasters subletting their rentals on short-term rental sites

One person rents an apartment and then can rent out the other rooms to help with the rent.

But that’s not what’s happening. According to one property owner on the Gold Coast, tenants are secretly subletting rooms on short-term holiday rental sites to not just help with their rent, but turn a profit.

“I live in a duplex and we own our side and the other side is occupied by someone who is renting, he is renting out (other) rooms on (a holiday rental site) and some of the people coming are downright dodgy and disrespectful,” the resident posted on Reddit.

“We live a long way from the Glitter Strip and there isn’t much going on in our suburb and … he gets all sorts of dodgy characters coming to stay.

“He had one guy dealing drugs and smoking weed in front of my front door, cars have been stolen in front of his house, ex-criminals are coming and staying there and abusing the street. I have a young family and don’t wish to subject them to any of this kind of behaviour.

“I know for a fact he is doing this … illegally and hasn’t applied for a council permit nor has he spoken to the landlord about operating this.”

Surprisingly, the responses to this post were anything but surprised.

“We busted our old neighbour doing this,” said one.

“Landlord was so happy we let him know. Sent him the listing screen shots and everything, (the tenant) had applied locks to the bedrooms and all sorts of dodgy shenanigans … was so satisfying watching her ship out.”

Now, subletting scams are nothing new.

We once owned a property in Southport and discovered our tenant was essentially living there rent-free.

Turned out he subleased the other rooms at a rate high enough to all but cover the weekly rental cost listed on the lease – the lease which made no mention of subletting or other tenants.

Ann Wason Moore on Gold Coasters subletting their rentals on short-term rental sites

And there we were trying to keep the property affordable.

The problem is that, as a sub-letter, it can be hard to know what’s fair.

One Gold Coast resident said they discovered this sublease scam after searching the address of the rental property and finding the original advertised price of the lease: “I found out that two of us are paying the whole rent, plus utilities, while the other person is getting a free ride off people he’s subletting to, while charging a $1000 bond each per person.”

Given the cost of living crisis and rents being what they are – that is, almost criminal – perhaps it’s no surprise that so many are out to make a buck in whatever way they can.

But what a nasty way to make a living, off the backs of people who are just trying to find some affordable shelter.

Add to that the shameless advertising on short-term rental sites, where a premium price is always demanded, and you wonder just how low we can go?

Unfortunately, given the city’s track record in struggling to police unregistered holiday rental properties in our suburbs, let alone single rooms for hire, this might only be the beginning of a subletting crisis.