Yahoo Finance Bondi backlash as tenant paying $950 per week can't 'come and go': 'Red flags'
The rental listing, which has now been taken down, said the tenant could not "come and go" during business hours and would be required to do caretaking duties.
A Bondi apartment located above a kindergarten has been listed for rent, with tenants advised they would be not able to “come and go” during business hours or permitted to have guests. The listing has sparked backlash with one expert saying it could potentially give rise to legal issues.
The rental listing, which has now been removed, said the three-bedroom unit could only be accessed through the kindergarten. It noted it was “being offered at a lower rent figure” of $950 per week as the successful tenant would be required to undertake caretaking work, including watering the gardens, cleaning up sticks and gum nuts, and putting out the bins for the kindergarten.
Yahoo Finance understands the property has a separate entrance for the tenant who is given a code that does not work during the kindergarten’s business hours.
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Tenants’ Union of NSW CEO Leo Patterson Ross said there were “possibly two breaches of the Residential Tenancies Act” in the listing, however, this would be a matter that would be determined by a tribunal or court.
“The red flags are flying high in this ad. The main two are attempting to restrict access to and from the premises while the child care is open - 10 hours a day during the week - as well as requiring caretaker responsibilities,” he told Yahoo Finance.
“There are all sorts of safety concerns with these - for the tenant who can’t access or leave their home.”
Patterson Ross noted landlords weren’t able to “breach your reasonable peace, comfort and privacy” and the term restricting access “may be doing just that”.
“The agent or landlord must also give the keys or codes to the tenant to enable them to access the premises and we don’t think you can restrict that to particular times of day,” he said.
Timed entry codes could potentially place the landlord in breach, Patterson Ross said, and meant access in an emergency "could present safety issues placing the owner at risk of compensation in a range of circumstances”.
‘Rip-off’: $950 a week listing a ‘poor deal’
It is legal to offer a rental as part of employment or caretaking arrangements, however, Patterson Ross said the rent should “reflect the value you are providing”.
“The price is set at $50,000 a year ($950 per week) - an eye-watering amount for such a poor deal,” he told Yahoo Finance.
“The agent claims this is a reduction, and so your ‘wages’ for caretaking are paid that way.
“It’s true that three-bedroom apartments have a median rent of about $1,450 per week in the area, but in the other apartments you are free to come and go at any time and this alone makes it hard to say there’s any real reduction at all.”
Aussies online shared they thought the rental was a “rip-off”.
“$950 a week for that place PLUS all the conditions that go with it??? I know it's in Bondi Junction but it's not even that nice of a place so even without all the conditions $950 a week is a crazy rip-off,” one wrote.
“In what world would anybody want a three-bedroom (presumably all occupied, for that price) home where you are effectively locked in, or out, during business days five days a week,” another added.
Renters forced to make ‘compromises’
Yahoo Finance understands the property was previously rented out with similar arrangements in place.
It comes as Aussies face an increasingly expensive rental market. Domain’s June rental report found asking prices had hit a record high across the combined capitals, reaching $650 per week for houses and $630 per week for units.
Sydney rental prices also hit a record of $750 per week for houses and $720 per week for units during the month.
Patterson Ross said the arrangement underscored deeper issues with the current rental crisis.
“[It] really speaks to some of the compromises renters are being forced to make and the disregard some people have for renters' wellbeing,” he said.
“We need to make sure people have a range of options to make homes that are affordable, safe and secure.
“We need to do this through a range of strategies - more public and community housing, better standards and compliance in renting and adjusting the financial incentives towards long-term housing.”
Yahoo Finance has contacted the listing agent Wills Property for comment.
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