Toni

Excessive Rents

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    Over the last few years I have met a lot of newcomers to Adelaide who find a long term rental and realise after they have signed the lease and settled in their first home that the rent being charged is excessive when comparing similar homes in the same area. Mostly they just pay it until their lease runs out and then another newcomer to Adelaide will take it thinking that is the going rate. The fear I suppose is that if you break your lease then you can end up paying it until it is re-leased which could take a while if there are other similar homes going for less. The OCBA (Office of Consumer and Business Affairs) -Residential Tenancy Act - have a clause in their Act about this. Here’s a link – do a search on “excessive rents” and you should find the right paragraph. http://www.legislation.sa.gov.au/LZ/C/A/Residential%20Tenancies%20Act%201995.aspx

     

    The way I read it – if you realise after you have signed the lease that you are in that category then you can register a complaint with the OCBA (Tenancy Tribunal).

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    Guest ali

    What a thoughtful thread Kris.

     

    Thanks a bunch:smile:

     

    Ali

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    What a thoughtful thread Kris.

     

    Thanks a bunch:smile:

     

    Ali

     

    thanks for your thanks Ali!

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    Guest Roo1

    Very good advice Kris. Thanks for the post. Maybe PIA members on here would like to share their stories so other newbies are clued up.

    Judi x

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    Guest Celine

    You would need to compare it with other similar properties in the area. The tribunal would need proof that the rent is excessive by comparing it to others

     

    hope that helps

     

    Celine

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    That's really helpful. Just out of interest, what would be classed as 'excessive' rent?

     

    You might not realise it when you first sign up because usually you are just desperate to find a home but after the dust has settled a bit and you are looking on realestate.com.au or looking in the newspaper or your friends start talking to you about rents you will probably work out that you are paying too much for an "equivalent" type home. It's probably also tricky when you are first signing up because obviously you don't want to miss out and if there aren't a lot of houses available in that area you are not going to be able to compare. In this case it is probably likely you are going to notice it a few months down the track and rather than try to break your lease it is probably better if you go to the OCBA and discuss the issue with them. You see if you break the lease then you will end up paying the rent until it is rented and if it set at a higher rate then you will be doubly disadvantaged because the lower priced homes will get snapped up first. Theoretically you could still complain because you would still be the "tenant". I am definitely not an expert I just was reading some parts of the Act and came across the info so just thought that there are probably some people breaking their leases that should perhaps look at other ways of getting around the issue.

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    Maybe it's because I work in finance (or maybe I'm just tight) but I wouldn't even dream of agreeing to rent a property without having a good idea of what else I could get for my money. I'm not even in Adelaide yet and I already know what the going rate for rent of a half decent three bed house in the Rostrever / Magil kind of area is.

     

    Good thread for those who are a bit less obsessed with property prices than I am though.

     

    Nicola

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    Maybe it's because I work in finance (or maybe I'm just tight) but I wouldn't even dream of agreeing to rent a property without having a good idea of what else I could get for my money. I'm not even in Adelaide yet and I already know what the going rate for rent of a half decent three bed house in the Rostrever / Magil kind of area is.

     

    Good thread for those who are a bit less obsessed with property prices than I am though.

     

    Nicola

     

    I know what you are saying Nicola and I definitely can see where you are coming from but once you are over here the pressure is on to get a lot of things done in a limited amount of time and it really does depend what is available. Usually closer to Christmas time people don't tend to move and so the long term rental property market can be tight so there are slim pickings with rental properties. It's a bit of a balancing act because the longer you stay in a Hotel/other accommodation the more you are paying at the higher rate so people tend to rationalise paying the extra which I can understand. Let's face it if you tell the agent that you think the rent is too high and there is a queue behind you of people prepared to take the rental then you can guess who the agent is going to pick. It is different if you are the only one looking because then they are likely to negotiate.

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    I know what you are saying Nicola and I definitely can see where you are coming from but once you are over here the pressure is on to get a lot of things done in a limited amount of time and it really does depend what is available. Usually closer to Christmas time people don't tend to move and so the long term rental property market can be tight so there are slim pickings with rental properties. It's a bit of a balancing act because the longer you stay in a Hotel/other accommodation the more you are paying at the higher rate so people tend to rationalise paying the extra which I can understand. Let's face it if you tell the agent that you think the rent is too high and there is a queue behind you of people prepared to take the rental then you can guess who the agent is going to pick. It is different if you are the only one looking because then they are likely to negotiate.

     

    We are in that catagory of paying excessive rent...we arrived mid feb with a gaggle of kids and a short time frame to secure a rental...every rental we looked at, at least 7 to 10 other families were looking too...the pressure is vast to find somewhere..and when you arrive to be honest you have not got a clue where to live as everywhere on the internet looks fab but in real life not quite the same!! so we picked a suburb....found a house and by that stage we were so grateful to have been offered one...we took it.....and we paying for that privilege $710 A week !!!

     

    We have issues with the house...no hot water in en ensuite....no outside lights that work.....nails that protrude through a carpet...huge hole in stair carpet....dripping taps.....oven door broken.....and a dog that lives next door that barks for at least 20 hours out of 24 each day....to name but a few problems....we have advised agent and landlord of all issues since we moved in and NOTHING been done...yet we still have to pay that excessive amount each and every week....got 8 months left on lease....and counting days till we can leave...they saw us coming, saw that we were stressed...new to all this rental stuff and pressured for time...and we got sucked in...its a lesson to be learnt i suppose but all the research in the world cannot fully provide you with everything you need to know before you get here....Apart from all that...WE LOVING IT :biglaugh:

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    You need to constantly remind the landlord/agents that this work needs to be done.. like write to them every day followed up with a phone call.. everyday.. especially if your paying $1420 a fortnight!! :o

     

    Document all this effort you are making with them..

     

    But, i'm pleased you guys are still loving it here!! Got to just get on with it! :D

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