Real Estate Agency's Late Rent Policy Triggers Outrage Among Renters
A real estate agency's letter suggesting tenants should borrow money to pay rent has outraged many, highlighting ongoing struggles within the rental market amidst rising costs.
A document from a real estate agency recommending tenants to secure bank loans or use credit cards to pay rent has sparked outrage among renters in Australia.
The document, shared on social media by a tenant renting through Ray White Bankstown in Sydney, outlines a strict "zero tolerance policy" for late rent payments, detailing actions that will be taken if tenants fall behind.
"Follow-up involves phone calls and personal visits. This has caused some tenants to be upset and embarrassed. However, we stand by our policy as you agreed when signing your tenancy agreement to pay rent on time," the document asserts.
Critically, the document suggests that tenants should "do all that you can to borrow money from other sources" to ensure timely rent payments, including options like borrowing from family or friends, accessing credit cards, or visiting a pawnbroker.
Additionally, it states that tenants who are consistently late but never reach a full 14 days behind may not see their lease renewed, and they could receive a "poor performance reference," impacting future tenancy opportunities.
A spokesperson for Ray White Bankstown claimed the circulating document is outdated, emphasising their long-standing "zero tolerance policy" while expressing sympathy for tenants facing financial pressures.
The letter attracted considerable criticism online, with commenters branding it "disgusting" and "cruel," with many expressing frustration over the expectations placed on renters.
Real estate professionals have also condemned the letter, arguing that it is disrespectful for agents to suggest tenants borrow money for rent. Industry officials clarified that the responsibility for paying rent primarily lies with tenants and should not involve suggestions from agents.
Current rental conditions reveal a challenging environment for tenants, with median rents in Australian capitals hitting $650 per week, prompting warnings from advocates about increasing evictions and the broader housing crisis.
The Tenants' Union urged renters to communicate with landlords or agents when experiencing difficulties and seek financial counselling if needed.
