A landlord who raised her tenants' rent by $100 a week – even though she knew they couldn't afford it – has defended herself by claiming she is helping to solve the housing crisis.
Kristie Hannah, from Western Australia, sparked fierce debate after admitting her single mother tenant would experience serious financial difficulties and possibly be unable to feed her children if her rent were increased.
Australians were divided after Ms Hannah made a video explaining how she had justified the rent increase despite the consequences for the tenant and her children.
Some said landlords were free to manage their properties as they pleased, while others called her “greedy.”
Ms Hannah has told friends she made the video to draw attention to what “was happening behind closed doors in Australia” and that she became a landlord to be part of the solution to the housing crisis.
“She wants the video to highlight the conversations that are regularly happening behind doors across Australia. The rent was not increased much last year to take into account the tenant's circumstances,” the source said.
'She would rather work longer hours to make sure a stranger has a roof over his head than force a woman onto the street. The problem has become a matter of landlord versus tenant. Where is the government?'
A Western Australian landlord has caused a stir after increasing the rent on one of her four properties by $100 a week
The landlord claimed her words were twisted and that she was at least $2,000 out of pocket
Social media users debated Ms Hannah's $100-a-week rent increase, with some questioning whether it was fair.
“She says she made the decision that means the tenant can't afford to feed his child,” someone wrote on X.
'Also says that the fact that the tenant cannot afford to eat is due to a housing crisis caused by the current and previous governments, when it is literally her direct decision that is responsible. All landlords are b*******.
Ms Hannah then hit back: 'I love how you completely twisted what I said for your own agenda!' she wrote.
'My question to you is this. Do I have to place my child in childcare for an extra day because I have to pay 7,000 euros out of my own pocket for my tenant?
“Keep in mind that I have been subsidizing the rent out of my own pocket for two years now at $2,000 a year. Should I make it free? How do you help the housing crisis?'
The controversy erupted earlier this week after Ms Hannah said she had learned 'not to mix emotions with business'.
“I decided to increase the rent by $100 per week for my tenant, a single mother with two children, on the basis that a reasonable rent increase would have been an additional $140 per week,” she said in a video shared with X.
'I realize she probably couldn't afford that. So I came to the conclusion that $100 would be a really good deal considering the suburb and it would be one of the cheaper rental properties on the market.”
Shen then explained that her tenant told the property manager that the $100 per week increase meant she would not be able to feed her children and would be in serious financial trouble.
“So now I'm in a position. Do I subsidize the tenant's rent and pay it out of pocket… or do I tell this tenant that she can't afford this particular suburb and she should look for a more reasonable place,” Ms Hannah said.
“It's a very difficult decision, one I don't take lightly and it just goes to show that this housing crisis is really affecting people financially.”
Ultimately, she decided to increase the tenant's rent.
Some social media users criticized the landlord for being “greedy” and exacerbating Australia's housing problem, but others defended her, insisting the property market is a business, not a charity.
“After further investigation, I have increased the tenant's rent by $100 per week. Rent is still $30-$40 per below market value. Now I'm learning that you can't mix emotions with business,” Ms. Hannah said.
Australians were divided over the video, with some claiming that owning rental properties is a business and not a charity.
“You have been more than generous. Push the full raise, if she's that close to the line she's going to have to leave that suburb shorty anyway,” someone said.
'If they are not satisfied, they can move to a cheaper suburb, it's that simple. You are still below market price,” another commented.
A third shared: 'Take the emotion out of it! It's an investment property, not a charity! As harsh as that sounds, it is the cost of success.'
'You're not running a charity at the end of the day. Maybe you can leave it after Christmas as a gesture of goodwill,” another suggested.
“Jesus, I can't imagine raising the rent by a hundred dollars a week. That would ruin anyone, let alone a single mother. What are you thinking of? Get some ethics,” someone said.
'You and the real estate industry are the problem! Raising the rent based on your real estate greed. If you recognize the social problems, why are you exacerbating the problem?' one more person added.
A third person shouted: 'Is this satire? Surely you're not such a terrible person.'
“I completely understand it's your property, but raising the rent right before Christmas is a bit heartless and a $100 per week increase is high during a cost of living crisis,” a fourth person said.
Australia's rental market has gone from bad to worse as unaffordable urban housing shortages have spread to the regions and rental price increases are outpacing wage growth.
National Shelter and SGS Economics' Rental Affordability Index shows affordability has fallen in every city except Canberra and Hobart over the past 12 months.
The cost of living crisis is leaving more and more people in financial stress as we head into the festive season.
More than 12.8 million adults – 62 percent of the population – are ending the year worried about their finances, compared to about 50 percent last year, according to Salvation Army research.
The survey found that 31 percent of adults use a credit card to pay for Christmas expenses, up from 18 percent last year.
One in four Australian adults will struggle to put food on the table this Christmas, while around one in three will find it difficult to pay utilities or rent.