Post by Flash on Apr 15, 2008 18:05:12 GMT -5
GREEDY real estate agents have been caught using scare tactics to prey on unsuspecting tenants as figures show the housing squeeze has led to rents increasing by almost 20 per cent.
Two real estate agents have been sprung scheming to gouge more money out of battling renters already facing a tight market.
One agent was spotted spruiking for more money with a sign in a window telling landlords, "Your rent should be increased now!"
Another sent out a letter warning tenants who don't pay on time they would face a rise and not be recommended for other properties.
The unscrupulous tactics come at a time when renters face sky-high rents. New Residex data shows rents in Sydney have risen up by 16.5 per cent in just 12 months, with the medium rent at $460, a $10 rise since December.
Statistics released to The Daily Telegraph show the number of families needing government crisis accommodation in the past 12 months jumped from 20,775 in 2006-07 to 20,008 in the year to date and projected to spike to 27,435 by the end of the year.
The State Government yesterday condemned the agents, with Premier Morris Iemma saying, "We can't have over-zealous real estate agents putting unreasonable pressure on tenants" and Housing Minister Matt Brown labelling the letter as "ill conceived and threatening".
But they were slammed by tenancy advocates who said NSW had the weakest protection of all the states and current laws were weighted in favour of landlords.
"In NSW there are no limits on the frequency and amounts of rent increase notices," the Tenants Union's Chris Martin said.
In one incident, an agent in Umina on the Central Coast put a sign in their window reading: "Urgent! Attention All Landlords Due to increasing demand of quality tenants your rent should be increased now!"
Principal of Richardsons Real Estate Lois Jones defended the sign, saying: "We don't create the market . . . we are not calling for anyone to increase rents."
When it was pointed out the sign said to do just that, she argued: "They have a choice."
Two real estate agents have been sprung scheming to gouge more money out of battling renters already facing a tight market.
One agent was spotted spruiking for more money with a sign in a window telling landlords, "Your rent should be increased now!"
Another sent out a letter warning tenants who don't pay on time they would face a rise and not be recommended for other properties.
The unscrupulous tactics come at a time when renters face sky-high rents. New Residex data shows rents in Sydney have risen up by 16.5 per cent in just 12 months, with the medium rent at $460, a $10 rise since December.
Statistics released to The Daily Telegraph show the number of families needing government crisis accommodation in the past 12 months jumped from 20,775 in 2006-07 to 20,008 in the year to date and projected to spike to 27,435 by the end of the year.
The State Government yesterday condemned the agents, with Premier Morris Iemma saying, "We can't have over-zealous real estate agents putting unreasonable pressure on tenants" and Housing Minister Matt Brown labelling the letter as "ill conceived and threatening".
But they were slammed by tenancy advocates who said NSW had the weakest protection of all the states and current laws were weighted in favour of landlords.
"In NSW there are no limits on the frequency and amounts of rent increase notices," the Tenants Union's Chris Martin said.
In one incident, an agent in Umina on the Central Coast put a sign in their window reading: "Urgent! Attention All Landlords Due to increasing demand of quality tenants your rent should be increased now!"
Principal of Richardsons Real Estate Lois Jones defended the sign, saying: "We don't create the market . . . we are not calling for anyone to increase rents."
When it was pointed out the sign said to do just that, she argued: "They have a choice."