A group of tenants who were forced to leave their Melbourne apartments after living in them for a year say their homes have now been relisted for $180 more a week.
Last year, after 12 months of living in the new build-to-rent apartment building in Fitzroy, one-third of tenants received rent increases or notices to vacate. Now, some tenants who were served eviction notices say they are seeing the apartments relisted for hundreds of dollars more each week.
Piri, who asked not to give her full name, rented a three-bedroom apartment with her husband before they were given a notice to vacate in October. It has now been relisted at $1,125 a week, $185 higher than what they were paying.
“To see it’s been relisted, it just upset us again, really just pissed us off,” Piri said.
After receiving notice to vacate, Piri said they emailed The Apartment Specialists (TAS), which manages the building, asking why they had not been offered a rent increase like other tenants. The building is owned by one corporate landlord.
“We just got a reply to say we’ve just been told the landlord just wants the property vacant.”
Piri said the couple had never complained through their one-year tenancy and would have considered staying on, even with the large rent increase, to avoid the stress of moving. It took the couple about three months to find a new place to live.
“It’s a big increase, but at least offer it to us. Give us the option.”
The Apartment Specialists were contacted for comment but did not respond.
Another tenant, who asked to be anonymous, said their two-bedroom apartment that they were told to vacate in November has been relisted, with the rental price rising from $770 a week to $975 – a $205 increase.
It is unclear how many of the building’s 43 apartments have been relisted at higher prices. One listing says they have “multiple 1 bedroom apartments available for rent!” while an advertised three-bedroom apartment says the photos are “of a variety of different apartments”.
Alex, who was told to vacate from one of the townhouses that are part of the building, said he moved just up the street and has noticed that his old home appears to be sitting vacant.
“I asked TAS months before, can we renew?” Alex said. “I said I know the rates are going to go up. I asked if we could stay for a year, or even longer.”
Alex said the property manager told him the owner “just sometimes leaves apartments vacant”.
Last September the Victorian government said it would ban landlords who evicted tenants at the end of their first fixed-term lease from raising rents, although legislation is not expected until 2025.
Joel Dignam, executive director of advocacy organisation Better Renting, said forcing people out of an apartment after 12 months was “hard to justify for a corporate landlord” – unlike an owner landlord, they were clearly not moving in.
He called on the Victorian government to come good on its promise to renters, or go a step further and ban no-grounds evictions after the first 12 months of a lease.
“There’s a strong incentive for companies to act like this, if they know they can get 20% more rent, they’re going to be sorely tempted to try it out.”
The Victorian government charges a residential property tax (VRPT) on properties left vacant for more than six months in a calendar year. In the 2022-23 financial year it raised $16.25m on 977 properties and in 2021-22 it raised $10.66m from 943 properties.
Dignam said large operating owners could manipulate smaller markets by leaving some properties vacant.
“These are red flags about the behaviour that corporate landlords will deploy. And so it is really important we have robust regulations, and as much as possible an abundance of housing, so they can’t get away with it.”
A spokesperson for the Victorian government said the state has “some of the strongest protections for renters in the country”.
“We’re working on implementing all aspects of the Housing Statement and announcements will be made in due course.
“Any renter who is concerned about an excessive rent increase is encouraged to contact Consumer Affairs Victoria.”
