A Far North Queensland tenant has spoken out after a lease renewal agreement was withdrawn on the basis that the owner was “looking to put the property up for sale”, only for the property to be re-listed for $100 a week more just a few weeks later.
Tom and his wife Jessica, who asked for their surname to be omitted, had been renting the four-bedroom house at Palm Cove for $650 a week and had agreed to an increase to $690 a week.
Palm Cove
They began their tenancy after moving to Cairns from Brisbane in 2022, and had agreed to one rent increase previously – an increase of $20 to $650 a week.
So when their lease was up for renewal again, they knew they would be expecting another increase.
An email sent to the couple from their property manager on May 2, and seen by News Corp, confirmed the tenancy renewal had been approved by the owner.
That email stated that the new 12 month agreement would see the rent increase to $690 a week, with the couple required to pay an additional $160 towards the bond.
“If you wish to renew your lease, please sign and return the attached lease renewal and bond form to our office at your earliest convenience,” the email stated.
“However, should you choose not to sign the lease renewal please also find attached notice to leave for the end of your tenancy, this is required to be issued due to the new tenancy laws that come (came) into effect (on October 1, 2022).
“I confirm that we will begin advertising the property available for lease two weeks out from your lease end date if we have not received the signed lease renewal form and at that point the offer for the renewal will be revoked and the notice to leave will remain in place.”
Their vacate date was July 5, meaning that advertising for the property could commence on June 21.
On May 8, Jess sent an email to the property manager asking for Tom’s email to be updated, and advising that they would get the lease signed and sent to the agency by the end of the day.
The couple claim they printed the lease renewal, signed it that night and returned it to the agency office.
But two days after the May 8 email, the property manager emailed the couple again, revoking the agreement.
“As discussed, this email is to advise you that the owner of the above property will not be renewing the lease agreement at the above property you are currently leasing as they are looking to put the property up for sale,” it said.
“Vacant possession of the property is required on the July 5 as per the Notice to Leave previously issued – a copy is attached for your reference.”
The email
At that time, the couple had paid up until May 23, with $2600 bond held in trust, according to the email from the agency.
Property records show that the residence had been listed for rent for $630 a week in May 2022, and for $790 a week on August 16.
That list price was $100 more than the lease agreement with the couple just a few weeks earlier.
The latest listing was the same as the one posted in 2022. It is still listed for rent.
Tom said that the exterior of the property had been painted since their departure from the property, and he believes his bond money paid for it.
“I had an RTA (Residential Tenancy Authority) meeting with a mediator to discuss the bond and they charged me for water blasting the driveway, whatever, but then they charged me something like $1700 to fix up patches and I am in the building game and there is no way I would ever pay someone for three days and a few patches of paint,” the tradie builder said.
“But they were not willing to budge and they gave me $200 of my bond back.”
Recently, Ray White Collective boss Haesley Cush wrote an opinion piece about the rental market, and the way landlords were dealing with changes to tenancy laws.
“One of the accidental drivers is a big change from the government intended to protect tenants, but it seems it could be having an adverse effect,” he said.
“The enforced new change fixes the weekly rental price for a property for a 12 month period. “This applies even if the tenancy changes or is a shorter lease and yes, even if they renovate. “The trend we are seeing emerge is owners are now increasing their rent significantly when the 12 months ticks over if the property becomes vacant.”
Picture: iStock
He said that the “common language” is: “We can always come down, but if I can’t review the rent for 12 months then let’s put it up high and see how we go”.
“The effect is properties are sitting idle which isn’t helping the situation and if the tenants keep moving up to secure a property then that crystallises the new market price,” he wrote.
The Palm Cove property has been advertised for a fortnight, but the house has sat vacant since the couple moved out on July 5.
Tom said that any gains the owner expected to make from the hike in weekly rent had been negated by the time the property had sat vacant.
He said no renovations were done inside the property during their tenancy.
“It has backfired as it has now been vacant for over two months and it is still vacant so they have lost any profit margin they were hoping for,” he said.
“I am angry, but what can you do?”
Renters in Australia continue to face inconsistent tenancy laws and an ongoing lack of protection, according to a new report from National Shelter and the National Association of Renters’ Organisations (NARO).
It found inconsistent application of the Better Deal for Renters, and that some jurisdictions had failed to meet their obligations.
The report recommended the need for fair rent increases and capping the amount of the increases, adequately funding tenancy advice and advocacy services, and better data to inform policy.
“States and territories have not done enough to strengthen renters’ rights amid the unprecedented housing crisis,” National Shelter CEO Emma Greenhalgh said.
“They need to lift their game to meet the National Cabinet requirements.”
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CANBERRA, AUSTRALIA – NewsWire Photos NOVEMBER 29, 2022:Emma Greenhalgh, Chief Executive Officer of National Shelter with the latest Rental Affordability Index . Picture: NCA NewsWire / Gary Ramage
In the summary of progress, the report said Queensland had removed ‘no grounds’ terminations for periodic tenancies, but had retained the landlord’s ability to terminate at the end of fixed-term tenancies for no reason.
“This aligns Queensland with Tasmania, who continues to allow ‘no grounds’ evictions for some renters,” the report said.
“Both governments consider they have met the standard, but housing advocates point out that allowing ‘no reason’ evictions at the end of a fixed term agreement leaves a significant gap or loophole in protections for the majority of renters in both states.”
The report said Queensland had introduced reforms that limited increases to once a year – a rule that applies to the property rather than the tenant.
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