Tenants received an email from an Australian property management company that seemed to boast about how much their rent had been raised.
Last week, the real estate company Ironfish sent out a group email with the subject line “Melbourne June lease update” that showed two happy kids bouncing on a bed and fighting pillows.
The words “Achievement in June: Biggest rent increase – $225 per week” and “Average rent increase $98 per week” are written over the image.
Given that the email contains both a favourable assessment of Ironfish from the standpoint of a landlord and another from a renter, it is unclear who the communication is intended for.
On Saturday, a user posing as an Ironfish renter posted a screenshot of the email to Reddit.
They stated, “My rent was increased… and the agency sent me an email boasting about it.”
The majority of commenters, both landlords and tenants, agreed that the email was inappropriate.
“That makes me cringe as a supplier and owner.” One person commented, “If my real estate agency braggled like that, I’d be out.”
I received the email even though I haven’t rented from them in over six months. Another added, “I admit that at first I assumed it was a funny email.
A third person said, “That’s just disgusting.”
A fourth person commented, “I get the impression that this was intended to be for owners.”
Many readers questioned if an increase in rent of even $98 per week, much less $225, could be justified.
States and territories have different regulations governing when and how much rent increases are permitted.
For instance, Consumer Affairs Victoria claims that unless it is expressly mentioned in the agreement, landlords are not permitted to raise rent for current renters during a fixed-term lease.
Additionally, tenants must be given at least 60 days’ notice.
According to SQM Research data released in June, the average weekly rent in Australia’s state and territory capitals increased by 16.3% to $657 over the course of the previous year.
Approximately 41% of all renters reported that it had an impact on their capacity to save, including for a deposit to purchase a home of their own.
Although the definition differs between states, tenants are protected by law from “excessive” rent hikes.
In general, an increase might be considered excessive if it differs too much from comparable market rents, if it differs significantly from the present rate, or if the property still needs major renovations.
Due to the recent rise in home and apartment prices, leasing has remained popular despite the difficult rental market.
Only 1.1% of all properties nationwide are vacant for rental purposes. The vacancy rate is less than 1% in rural areas.
There simply aren’t enough rentals available at this time, Chris Ford of Compare the Market stated.
Low-income renters will struggle the hardest as a result of multiple reasons, including excessive demand and a lack of supply, which are driving prices up.
Home ownership becomes even more out of reach for those who want to get out of the rental system if they are unable to save money.
Renters who are already dealing with rising cost of living expenditures like gas and groceries are also paying more for their mortgages thanks to gradually rising interest rates.
Moving to a less expensive house is one option, but while the market is still competitive, good bargains are hard to come by and landlords are less eager to haggle, according to Mr. Ford.
We’re still very much in a landlord’s market right now, and rents have already risen over the past 12 months as a result of more competition in crowded markets.
If you have any questions, you should contact the Residential Tenancies Authority in Queensland or Fair Trading in NSW, which are both state and territory organisations that defend renters’ rights.