NSW Rental Property Advertised for $400pw but after Accepting, Contract States Rental Increase $410 after 60 Days

Lwiselyfoolish on 19/01/2019 - 07:46

Just wanted to see if this is legitimate.

I have recently moved to NSW from QLD and applied for a rental property that was advertised for $400 per week in regional NSW. Neither did the agent or the advertisement ever mentioned that there would be a rental increase in price. There were multiple applicants but I managed to secure the deal. But upon signing the contract, I noticed that they will increase the rent in March to $410. Unfortunately I need a place ASAP and I figured they sensed my desperation and upped the price.

The explanation given - the market did not reflect the rent hence the increase in price. They said the owner must give 60 days notice of rental increase hence the price increase in late march.

Now I have been renting for 10+ years in both NSW and QLD but this is the first time I have seen this type of thing being done. Usually they would let you know if there was going to be an increase in the advertisement or tell you in advance.

I wonder if this is common in NSW for people to advertise one price then pull a shifty like this when you are about to sign the contract?

Financial

Comments

  • oscargamer on 19/01/2019 - 08:01
    +1

    Common, don't know.

    Legal, yes.

    Irritating, yes.

    Anything you can do, no.

  • tranter on 19/01/2019 - 08:03

    What is the lease period? 6 months? 1 year?

  • qwerty on 19/01/2019 - 08:29

    The alternative is you sign and move in and he gives you the 60 days notice of rent increase

  • enzioFirenze on 19/01/2019 - 08:36
    +7

    that's pretty sneaky actually, especially because the rents have been going downhill and lot of owners have been struggling to rent their apartments as well

    • CheapskateQueen on 19/01/2019 - 09:52

      don't know you you're downvoted. you're right

      • enzioFirenze on 19/01/2019 - 12:28

        I have no idea either mate, unpopular opinion may be

    • resubaehtgnolhcs on 19/01/2019 - 12:49

      It might be different in regional areas of NSW - it may not be a renter's market there…

  • Nutrino on 19/01/2019 - 08:52
    +14

    If it's a renters market, rent somewhere else.

    • MattwasHere on 19/01/2019 - 09:03

      Can be difficult at times, op was desperate to which my family was in that situation not too long ago. In some area's you take what you can get :/

      • HighAndDry on 21/01/2019 - 10:42

        Then it's not really a renter's market for OP is it?

    • tranter on 19/01/2019 - 09:52

      You are right. But it doesn't take away from the fact that this is an example of pure greed by the landlord and completely unethical.

  • SnoozeAndLose on 19/01/2019 - 08:57

    If you signed a contract, no increase can be made within the contract period. Unless it is mentioned on the lease

    • HighAndDry on 21/01/2019 - 10:42
      -2

      OP noticed when signing, so it was there before OP signed. It's sneaky, but OP was legally free to walk away.

      • SnoozeAndLose on 21/01/2019 - 10:43

        Yes i think so there is cooling down period.

        I wouldnt sign it if it was me.

        • HighAndDry on 21/01/2019 - 10:59
          -2

          But OP saw it, and still decided to sign it, and now don't want to abide by it. That seems to be wanting their cake and eating it too.

          • SnoozeAndLose on 21/01/2019 - 11:03
            +1

            @HighAndDry: So i think it is waste of everyone's time here.

            Just post the meaning of contract/lease then this thread should have been closed

  • CheapskateQueen on 19/01/2019 - 10:01
    +2

    I've not heard someone do this before. It's very sneaky. Sounds like the rent increase is in the actual lease agreement because usually if you sign a fixed term contract the rent can't upped during that period.

    As a landlord I find this really unethical.

    s/he's definitely advertised below market to get to find a tenant in a renter's market and then slugged you once they suckered you in.

    You could play the tribunal game and say you refuse to pay the extra $10 because it was advertised for $400. If your intended move in date is asap, you'd argue that you had no choice and it is unconscionable to induce your tenancy on a false representation of rent and you'll be homeless if you don't move in. You'd get the tribunal to deny the rent increase. Tribunal is totally a tenants advocate. (As a landlord I've been victim to serial renters that abuse the system. Even even they're wrong and the Tribunal Member has pulled me aside to tell me as such, they win).

    • HighAndDry on 21/01/2019 - 10:43
      -1

      Except OP knew about the increase before/when signing the lease.

  • Sofie519 on 19/01/2019 - 10:04

    So you have not signed the lease?

    In NSW, during the lease term, the rent can not be increased. But prior to having any lease signed, the landlord does have a right to put in any terms and conditions for you to accept (by signing).

    If you don't want the $10 increase, renegotiate, but be prepared to lose the property. As there is a chance that the owner recieved another offer which is why he wants it from you. If you think owner doesn't have another offer, then insist on original application price, since $10 = $520 pa and landlord may stand to lose more than a week's rent if he has to readvertise. Which puts landlord in same position.

  • barbarella on 19/01/2019 - 10:08

    That does suck :/ I would be very annoyed by that too!! I would probably just appeal to the agent to ask the owner to at least give me more time in the place before a rental increase…no guarantee that they will agree though.

  • CyberMurning on 19/01/2019 - 10:08
    -4

    I won't complain when my boss raises my pay so I won't complain when the prices are up.

    Could be price of broccoli or rent. As long I got enough notice according to the law. Just pay or move. Trust me someone else will take it.

    • tranter on 19/01/2019 - 10:25
      +1

      Just because it's within the law doesn't mean it's right. You must really be one of the easier pushovers in life.

    • barbarella on 19/01/2019 - 10:34
      +4

      ChiMot you can't possibly be an OBer with that attitude!!!

      • tranter on 19/01/2019 - 11:01

        ChiMot you can't possibly be an OBer with that attitude!!!

        They are in fact the OP's landlord.

  • swapsey on 19/01/2019 - 10:56
    +13

    One lesson I have picked up over the years is that when there is one bad sign regarding dodgy behaviour there will be more to follow. In your case it could be the way they handle inspections or something else. They may start applying backhanded tactics in other ways. Ask yourself - would I be happy to deal with this type of behaviour on the regular? Is the house worth it?

  • try2bhelpful on 19/01/2019 - 11:14

    https://www.tenants.org.au/tu

    Talk to these guys.

  • Fier2 on 19/01/2019 - 12:15
    +1

    Definetly not common and if i were you, i will give it a miss. If they are already increasing the price upon signing the lease , you might be up for a lot of more surprises while being a tenant and in the worst cases , they might played some tricks to keep your bond at the end. If you still want the properties, make sure you take a lot of pictures/videos and filled properly the conditions of the property you move in. Good luck.

  • tsunamisurfer on 19/01/2019 - 14:13

    There is nothing wrong with this contract as long as the OP has the option to reject the terms, which he has.

    Those crying greed, isn't that what investment is for?

  • bobbified on 19/01/2019 - 15:32
    +2

    It's not illegal to increase the rent because the 60 days notice is inline with the contract terms you've signed, but it's quite a bad way to do about it.

    They've obviously only advertised it for a lower price to attract tenants.

    To put it simply, it's a good indicator of an a-hole landlord. I would be very careful of the rental bond. Make sure you take lots of pictures and videos and document everything. I would not be surprised one bit if they eventually try to make a claim on your bond for little petty things at the end.

  • wiselyfoolish on 19/01/2019 - 21:19

    Thank you everyone for your help. Unfortunately, time is against me so I will stick with this property for now and leave as soon as possible, but I will definitely be careful and take full pictures for any shady business.

    Just to clarify, I received phone call that my application was accepted and went to sign the contract at the real estate. That's when I read this rental increase in the contract that I was never made aware of in the advertisement or during the inspection of the property by the agent.

    • HighAndDry on 21/01/2019 - 10:44
      -3

      Contract is key.

      But upon signing the contract, I noticed that they will increase the rent in March to $410.

      You knew about it before you signed - you had a choice whether to sign it or not. Sneaky? Yes. Unethical? Arguably. Illegal? Not by a long shot.

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