Tenants are putting up with shoddy conditions as tight market shifts power to landlords

There’s an “extreme power” imbalance between tenants and property owners, the welfare sector says, as desperate applicants offer up to $100 a week above asking prices.

The welfare sector has warned of an “extreme power” imbalance between existing tenants and property owners because of the rental crisis.

Uniting Communities manager Mark Henley said the income-wide rental crisis had flowed on to hit low-income tenants the hardest.

“Tenants are putting up with very poor housing for fear of being noticed by landlords who will then put up their rent – the power imbalance is extreme between renter and landlord at the moment,’’ he said.

“Certainly many of the people using Uniting Communities provided help services will do just about anything to avoid contact with landlords – ‘out of sight, out of mind’ is the basic premise.

“A result is that even the most basic of maintenance is not undertaken, and many rental properties are already in poor condition.

“Many renters are expecting cold drafts to be a part of being inside this winter.”

South Australian Council of Social Service director Ross Womersley said “the rental market is broken”.

“Things are so tight in the rental market that we know of circumstances where landlords are purchasing large multi-bedroom properties and then renting each of the rooms out separately for double and triple the amounts they might be likely to charge for the property as a whole,’' he said.

Mr Womersley said a large public housing injection was the only way to take pressure off the private market.

Mr Henley said in one example of a tenant who called for help from a land owner had their weekly rent put up on the spot by $20, despite this not being legal.

He said the sector was lobbying for;

SUBSIDIES for landlords to install solar power for lower energy bills.

AN easy process to deal with minor complaints, particularly basic repairs, without the threat of eviction.

ENERGY efficiency standards of new homes extended, and introduced for rentals.

REVIEW of the Residential Tenancies Act to better help tenants.

Tenants offering $100 over the odds for sub-standard properties

Hopeful tenants are offering around $50 above the weekly rental prices in a desperate bid to secure a property.

And one person’s offer of an extra $100 per week, still failed to get the lease.

It comes as a shocking affordability study revealed the uphill battle faced by Adelaide tenants, with only two of 1125 homes on the market able to be afforded by single minimum-wage earners.

Turner Real Estate boss Emma Slape said that of 75 properties let by them in the past 30 days, 34 properties had applications which offered more than the asking price,’’ she said.

“This has differed by between $5 to $50 per week, most being around the $10 to 20 per week.”

She said single property inspections are attracting around 40 groups of hopeful tenants – and the demand for family homes was the strongest. Ms Slape said 15 to 20 people was common at unit showings.

She said despite the increasing desperation and the rental market getting tighter, the ploy of trying to pay overs often backfires.

“People will always look at applications first,’’ she told The Advertiser.

“Realistically, the offer to pay more can be masking tenancy issues in the past and it’s only on a promise by the applicant.

Simon Flaherty with Charlie 4, has been battling with his landlords over asbestos issues. Picture: Kelly Barnes

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“The rest of the application is a true history and important – tenant ledgers, past rental references (particularly from an agent), employment security and reasons for wanting to be in the area.”

Ms Slape described the big issues for landlords as being on time to an open, applications being complete when lodged, a rental ledger from their current tenancy, and reliable rental references who respond quickly.

The rental crisis has been triggered by a sparse property market, more current renters staying put, less people leaving the state and a growing influx of young people returning to SA,

REISA chief Cain Cooke said the market was driving many challenges.

“We have a hot market where landlords are selling to take advantage of the strong sales prices, and owner occupiers are purchasing, removing rentals from the market and amplifying the issue,’' he said.

But Ms Slape said there were signs that the crisis would ease, but not in the short term.

“The next twelve months will be an interesting period as life returns to more of what we know,’’ she said.

“People will start to move around, both overseas and interstate, as they did previously, and this will cause some movement in the rental and sales market.”

Simon cracks up over sub-standard property

Simon Flaherty knows better than most how the huge demand for rental properties has created a power imbalance between tenants and property owners.

The North Haven resident is trying to have asbestos contamination issues, leaks and shoddy workmanship issues addressed at the property he rents with his family of four children.

“We have been exposed to broken asbestos, silica dust, and internal walls which are about to fall down, and a toxic property manager who is walking all over us,’’ Mr Flaherty said.

Mr Flaherty and his family have been relocated by their insurance company, but are still made to pay rent at the dodgy property.

He is a gyprock installer and knows the construction industry well, especially wall coverings which until recent decades often included asbestos.

Simon Flaherty with his kids Kaylee 11, Billie 2, Charlie 4 and Khloe 8, says his family have been relocated by their insurance company but are still made to pay rent at the dodgy property. Picture: Kelly Barnes

“A few days after moving in my wife Kristy found glass and cement board scattered throughout the backyard where my kids were playing,’’ Mr Flaherty explained.

“Further inspection I was 99 per cent sure this was asbestos and it is being tested.”

“I did not want to argue with the agents so in December I took a sample to a labs to get it tested for $66, it came back positive.”

Mr Flaherty said the house had become badly affected by silica dust when pest controllers drilled through concrete and did not clean up properly.

The battle with his real estate agent has been going on for four months.

Simon Flaherty with his kids Kaylee 11, Billie 2, Charlie 4 and Khloe 8, outside his home. Picture: Kelly Barnes

Originally published as Tenants are putting up with shoddy conditions as tight market shifts power to landlords