Real estate agent defends ‘parasitic’ listing

A rental property raised eyebrows when it was listed at a modest $375 per week for a large family-sized home. But there was a major catch.

A rental property raised eyebrows last week when it was listed at a modest $375 per week for a large family sized home with two bathrooms.

Upon closer inspection, the listing was advertising individual rooms for the low price — with larger rooms on offer for $450 with a total of five rooms available.

The listing triggered controversy with the real estate agent forced to defend what some have labelled a “parasitic” listing in a desperate rental environment.

“She’s basically clickbaiting people,” director of Perth-based Contessi Properties Paulette Contessi said in a TikTok video.

She said a five bedroom, two bathroom home in that suburb should probably rent for about $900.

“There is nothing illegal about it, but it is extremely unethical,” Ms Contessi told news.com.au.

She said renting individual rooms was “very unusual and it is not the job of a property manager”.

“We don’t run boarding houses,” she said.

Director and Licensee of Contessi Properties Paulette Contessi said it was a "very unusual" listing. Picture: Supplied

She said a “desperate” rental situation in Perth resulted in these “parasitic and unethical” rental listings, and referenced other extreme examples including a woman leasing out her veranda and a man putting his shed up for rent.

The property in the family friendly suburb of Gwelup, Perth was listed by Fair Street Realty owner Rajni Walia, who told news.com.au she was offering a “great solution for people in need”.

She said this type of listing provides options for a range of different prospective tenants.

“If you have in your pocket $650 or $800 you could be possibly renting out a full house for

$650 depending on the suburb,” Ms Walia told news.com.au

“There are many people who do not have the capacity to pay that kind of money, so where do they go?

“People who have migrated to Australia or have just moved to Western Australia or are still testing the waters. They need temporary accommodation and they need options.”

She said she received nine applications on the first day she listed the property, and that the house had been tenanted — meaning this was a suitable option to help combat the shortage of houses in the market.

The ‘clickbait’ listing was on realestate.com.au for $375. Picture: realestate.com.au

She said the property was an “alternative option” in a tight market that people were not being forced to take.

“This is not a situation created by me or the owner. It is the environment. It is the entire real estate market,” she said.

She told news.com.au that default risks and costs have all gone up — and that this was an option to mitigate that risk and spread it equally across tenants.

Ms Walia said she acts under the Real Estate and Business Agents Act 1978 which states: “When acting for a client, an agent or sales representative must act in good faith in the best interests of the client.”

It also states “an agent or sale representative must act according to the client’s instructions and within a reasonable time.”

“I act on the owner’s instructions. I cannot just decide,” Ms Walia told news.com.au.

“It has to be the owner to decide what he wants to do with his asset.

“My role in the process is to find out the best outcomes for both the owner and tenants.”

She said the house was now leased, and that the final rental income was below the estimated $2100 per week figure being referenced.