PHOTO: FILE
A prominent real estate agency is defending its approach of advising landlords to increase rents, sometimes by as much as $10,000 annually. A leaked marketing email from Ray White’s West End branch in Brisbane, disclosed by 7 News, revealed that property managers have been suggesting rent hikes averaging 17% for leases renewed in October and November, with a projected rise of over 20% for December renewals.
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The email stated, “This can be as much as $10,000 per year in additional rental income.” It also claimed that most tenants are receptive to the increases, perceiving them as fair and reasonable when comparing them to market rates.
However, the CEO of Tenants Queensland criticized this stance, calling it a rationalization agents use to justify rent hikes. Penny Carr emphasized that tenants often feel compelled to accept these increases out of fear of homelessness, as they lack negotiation power.
Max Chandler-Mathew, the Greens spokesperson for housing and homelessness, condemned the strategy as blatant price gouging. He advocated for a nationwide freeze on rent increases for two years, citing the dire housing situation where families are resorting to makeshift shelters due to the lack of affordable housing.
In response to criticism, Ray White defended its email, asserting that it’s their duty to inform clients about market conditions for informed decision-making. CEO Jason Andrew emphasized their awareness of the tenant’s needs but blamed the state government’s housing policies for exacerbating the housing shortage, which they claim is the root cause of the issue.
SOURCE: YAHOO