| posted on March 17, 2021
ALBANY’s most vulnerable tenants could face substantial rent increases or eviction when the COVID-19 rental moratorium comes to end on March 28.
The rental moratorium was put in place by the WA Government at the height of the COVID pandemic last March to protect tenants from eviction and to put a ban on rent increases.
When the period comes to an end next Sunday, landlords will be able to act under ordinary tenancy laws and increase the rent of their properties in line with the current supply and demand of the market.
Shelter WA CEO Michelle MacKenzie said she was worried Albany’s housing shortage coupled with rent increases will force people into homelessness.
“Our main concern is that people will either face huge rent increases which they can’t afford, or they will be evicted, and given we don’t have a lot of affordable rentals they won’t have anywhere to live,” she said.
“They will need to make really difficult choices about if they stay in the home and pay even more of their income on rent, which means that other expenditure won’t happen.
“That might be meals, it might be things for their kids.”
A mix of rentals being sold, a lack of social and affordable housing availability and more people chasing the regional lifestyle have all contributed to higher demand.
Ray White Albany Property Management Head Tam Emin said she was expecting to see a lot of rental increases at the end of the month.
“Normally in Albany we would have around 100 properties to rent, at the moment there is around 30,” she said.
“The average rent in Albany is around $330. That has now increased because of the supply, so there is a lot of people who know their leases aren’t being renewed after the moratorium ends or they know their rents are going up.”
Long-term Albany renter Liza Derkatch said there seemed to be a lack of empathy when it comes to landowners choosing to increase rent at this time.
“It feels like landowners are capitalizing on that economic gain without much consideration for people’s lives, job losses and changes to circumstances,” she said.
“I’m a tenant but I’ve also had a house that I’ve rented out so I can understand both sides of the coin but there’s a moral compass that doesn’t even come into consideration.
“You cannot inflate at such a substantial rate in this economic climate just to benefit and profit, and put people is housing stress and in homelessness.”
According to Shelter WA, 35 per cent of Albany residents are experiencing rental stress.
Ms MacKenzie said the issue was becoming more widespread throughout the community.
“It affects people lives and it’s really stressful if you don’t know where you’re going to live or if you don’t know that you can afford to live where you are, the stress is just enormous,” she said.
“What we are finding from our members is this is becoming more and more prevalent and it’s a mainstream issue, people are ringing services who normally wouldn’t be in touch with services.”
Shelter WA recommends tenants discuss their circumstances and payment options with their landlords prior to the end of the rental moratorium.
“We would really encourage people to have conversations with landlords early, Ms Mackenzie said.
“I think those conversations are really important so people can stay in their homes and so landlords get that security that the tenant can pay the rent, it can be a real win-win.”