Industry leaders are warning of a widespread issue of subletting throughout Hobart homes

“Underlying issue”: There are calls to overhaul state laws which fail to protect subtenants of Tasmanian rental homes. SEE THE PROPOSED CHANGES >>

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THERE are calls to overhaul state laws which fail to protect subtenants of Tasmanian rental homes.

But some have suggested the system shouldn’t allow for subtenants to exist at all and protections should instead be directed towards landlords.

It comes after the Mercury revealed subtenants at a Sandy Bay rental home were this year fleeced thousands in rental costs by a tenant who claimed to be the property owner.

Property agent of the Sandy Bay Rd home, Jane Donoghue of PRD Real Estate, said the issue of tenants subletting and profiteering from rental homes could be rife across Greater Hobart.

Tenants Union solicitor Ben Bartl also said the issue appeared widespread.

Ben Bartl solicitor at the Tenants Union Picture: NIKKI DAVIS-JONES

“We’re not surprised, we often get calls and have tenants come in to see us in scary situations involving vulnerable tenants often with limited English, newly-arrived, and don’t know the residential tenancy act or the protections that are afforded to tenants,” he said.

“We would call on the government to reform the law as soon as practicable, because, the underlying issue of course is that there’s a lack of affordable rental properties, and so desperate times call for desperate measures.”

Labor Clark MP Ella Haddad said “people fleecing others looking for a roof over their head is unconscionable”.

“It’s disgraceful that there are people who would seek to exploit others by ripping off bond and rent money and leaving Tasmanians potentially homeless with no recourse for tenancy protection,” she said.

Sandy Bay tenants Elly Stone and Nikesh Todi want to expose the conduct of the two people who sub-let the property to them and made a profit for themselves. Picture: Zak Simmonds

“There must be more substantial protections for sub tenants under residential tenancy laws because right now they have no rights under these laws or the bond authority.”

State laws are such that “a property owner cannot unreasonably deny permission for the head-tenant to sublet”.

Tasmanian Residential Rental Property Owners Association President Louise Elliot said legislating in favour of tenants could become a detriment to landlords.

“I don’t believe there should be protections in place for subtenants, as I don’t think subletting should be allowed unless consent is expressed by the property owner,” she said.

“As a landlord you want to know who the persons are that are living in your property.”

Ms Elliot said landlords had been stung by government-introduced legislation earlier this year mandating that property owners must accept an IOU from renters who can’t afford payment.

“What im against is how much more are we going to intervene with the market?,” she said.

“It’s becoming more and more unattractive to become a landlord.”

Ms Elliot said more education around the rental process should be given to property owners and tenants when entering into a rental agreement.