Re: Is it illegal to collect rent on a property deemed illegal by council?

Hi all

Many thanks for your responses.

One of the reasons I’ve stayed is/was because I foolishly had a glimmer of hope that perhaps they would put through a DA to have the property renovated to make it ‘habitable’ (one of the options outlined in the notice from Council issued at the beginning of April), in which case I could continue my tenancy post renovation (they had only just issued me with a rent increase notice prior to the council knocking on my door, so clearly had no intention what so ever of ceasing the tenancy).

It was only after the lawyer had an independent building inspector come over, who confirmed in front of us both that they house indeed needed demolishing that that glimmer of hope was completely shot down in flames. That inspection was back in May and it’s taken them all this time to issue me a termination notice (31 July).

To add insult to injury and most annoyingly, the termination notice the lawyers have issued me says ‘Termination of Periodic Tenancy ‘without a reason’, presumably to make my claim even more difficult. As if the injustice of it all hasn’t been enough.

Oh the joys. I have continued to pay my rent in good faith and to maintain any future relationship, but now it would seem that has all been in vain.

The other reason I’ve stayed, is because – as mentioned, I have no money (while again, not their problem – it certainly doesn’t help matters).

And yes, I of course am and have been looking to move out (stat!), however with over a dozen people lined up to see each and every property I’ve earmarked/can afford, without a job at the moment (yes, I am trying frantically on this front too), the task is arduous and daunting to say the least. The fact that I am an excellent tenant by all other accounts isn’t helpful without a healthy bank account or job.

I actually made an enquiry to Council yesterday to see if there had been any movement/development since the notice was issued, and although it stipulates the owner had to respond in 10 days and they had to vacate the premises in 60, Council said they couldn’t see any evidence of communication with/from the owner since then, and admitted they hadn’t done anything further. So it would seem that notice will be little more than a slap with a soft tissue! And even if action is taken, it dare say it won’t hurt them as they’ll no doubt pay using my ‘illegally gained’ rent money anyway. So again it would seem the owner is going to get away with this. Not good enough!

Aren’t there criminal proceedings for people who make money off illegal activities in every other corner of our society? Well, this would appear to be loophole. A very large and lucrative one.

Aside from the landlord’s clear lack of moral compass, it would also appear that there are a lack of consequences for agents who act unlawfully and are knowingly complicit. I’m thinking a call to the Real Estate Institute of Australia to ‘enquire’ about the rogue operator should be at the top of my list of things to do.

In fact, on reading the fine print of the termination sections of the RTA 2010, there doesn’t seem to be anything at all about what rights the tenant has when the landlord has done something illegal: it all seems to relate to events being the other way around (ie: the tenant is in the wrong).

Of particular interest to me however, is Section 26:

26 Disclosure of information to tenants generally

(1) False representations: A landlord or landlord’s agent must not induce a tenant to enter into a residential tenancy agreement by any statement, representation or promise that the landlord or agent knows to be false, misleading or deceptive or by knowingly concealing a material fact of a kind prescribed by the regulations.

(4) Information statement to be given A landlord or landlord’s agent must give a tenant an information statement in the approved form before the tenant enters into the residential tenancy agreement.

This I think could be my saving grace. It’s just a [little!] matter of proving it.

But other than that, with legislation as it currently stands, offering little to no support for hard done by tenants, all I (and others who find themselves in my position) can do is move on. Literally.

Update: Fortunately, I have also remembered that a very close friend of mine’s sister is a top barrister (local), and with good karma in mind – has said she will happily help me here. She has advised I stop paying rent immediately, and is coming over today to check out the place and pick up the 300 odd pages of emails, documents and photos I’ve printed out for her to facilitate a friendly ‘chat’ with the owner’s lawyer. There is a lot of meat here, so she is fairly confident. Thank goodness for her.

Oh dear – I will also need to add some hair dye to my list of things I would like to claim, as I’m sure a few of these grey hairs weren’t there a few months ago??

Any thoughts on any of this?

Other than that, I will keep you posted. Thanks again for your support. Much appreciated.