A young hospitality worker has won a David and Goliath battle against his landlord after being slapped with a sudden massive rent increase.
Harrison Reid, 30, was shocked when all nine units in his Tamarama apartment building in eastern Sydney received rent increases of up to 70 percent.
This was despite the fact that he and other tenants lived with black mold, crumbling cabinets and poorly maintained facilities in the Pacific View building.
The tenants immediately banded together and sued their globetrotting landlord Denis Sinilov – who enjoys a lavish lifestyle with his social media star wife – before the NSW Civil and Administrative Tribunal.
Mr Reid, with broken glasses, was the first to make his case and his rent increase was reduced to 22.5 percent, from $670 a week to $820 on a new 12-month lease from May 9.
“I feel good… it’s still quite a lot, but it’s a much better result than the original increase,” he told the Daily Mail Australia after the hearing on Wednesday.
Nine tenants are challenging Denis Sinilov’s rent increases at the NSW Civil and Administrative Tribunal, claiming they are ‘unethical and unsustainable’
Harrison Reid, 30, was shocked when all nine units in his Tamarama apartment building in eastern Sydney received rent increases of up to 70 percent
‘I found the initial increase completely unreasonable and unjustified. I knew that as a tenant I was not well protected and [fighting] it was a roll of the dice.’
Property managers Cohen Farquharson, run by Luxury Listings star Simon Cohen, initially demanded a 65 percent raise to $1,100 a week for his two-bedroom apartment.
The landlord also agreed to repair the unit after a heated 90-minute mediation meeting, where loud arguments could be heard in the NCAT offices.
Ceilings need to be repainted, cabinets in the kitchen repaired or replaced, broken garage lights repaired, blinds cleaned, and the mold-covered bathroom door replaced before the new lease begins.
Mr Reid said NCAT was very helpful and the tenants’ lawyer gave very good advice that helped bring the two parties, who were initially far apart, closer together.
“This is a very important process to undertake, if people are affected by a rent increase that is exorbitant and unfair they should not be afraid to go to court… what have you got to lose?” he said.
“I’m glad property managers were willing to negotiate and compromise… which was a bit of a relief because when I first received the raise, it seemed like it was non-negotiable.”
Tenants live with black mold, crumbling cabinets and poorly maintained facilities in the Pacific View building
Mr Reid outside the NSW Civil and Administrative Tribunal on Wednesday after his rent increase was slashed to 22.5 per cent, from $670 a week to $820 on a new lease
Mr Reid said most of the pressing issues he outlined in his case would be addressed this month, but not the wider structural issues with the aging building.
“I wouldn’t say the increased rent is exactly in line [with what the repaired property is worth]but it’s to the point where I’m okay with it,” he said.
Mr Sinilov is believed to be negotiating with the eight other tenants through Cohen Farquharson ahead of their hearings in the next two months, and Mr Reid hoped his deal would lead to similar compromises.
“I’m really proud of our apartment building that we all put together,” he said.
“This process can be very onerous and stressful and terrifying and I think we all realized that the proposed increases were unreasonable and unsustainable and were of great benefit to all of us.
“Everyone has to fight their own war, you won’t get anything you want unless you show up and fight for it.”
Mr Reid previously explained that the tenants were not opposed to an increase in their rents after four years of stability, but that they were ‘rejecting an absurd, greedy, capitalist rent increase that is simply unjustified and unfair’.
Another tenant’s lease increased from $630 to $850, and others from $630 to $1,100.
The shift worker said he was lucky to have a partner but no children and the time to fight his case before the tribunal.
“A lot of people, I think, don’t — they can’t get time off from work or they have kids. My heart goes out to young families who can’t bear to go down this path,” he said.
The landlord agreed to repair the unit after a heated 90-minute mediation meeting
This badly broken kitchen cabinet in Mr. Reid’s unit will need to be repaired or replaced before the new lease starts
Mr Sinilov bought the property in Tamarama, Sydney’s east, on Oct. 21 for about $15 million and tenants claimed maintenance had declined sharply since then
While the tenants live in dilapidated housing, Mr. Sinilov lives a luxurious life with his social media star wife.
He celebrated Christmas with a huge Christmas tree in the middle of his sprawling family home and regularly takes lavish vacations.
Photos show the property developer and his wife Svetlana Sinilova at one luxury resort in the Maldives and another at another beach paradise.
Ms. Sinilova, an influencer, famously vacationed at the $4,000-a-night Kokomo Private Island resort in Fiji in 2018, at the same time as PR queen Roxy Jacenko.
Mr. Sinilov bought the property on Oct. 21 for about $15 million through his Infinity 10 company, and tenants have claimed maintenance has declined sharply since then.
Tenants’ rents have not increased in the four years leading up to the sudden increase, and with apartment rents rising 24 percent over the past year, it was expected to.
Mr Sinilov and his influencer wife Svetlana Sinilova live a life of luxury while his tenants say they suffer from black mold and crumbling units – and he’s raising their rent by as much as 70 percent
Photos show the property developer and his wife Svetlana Sinilova (left) at a luxury resort in the Maldives, and Ms. Sinilova at a $4,000-a-night resort in Fiji (right)
But they claimed the increases were unwarranted due to the condition of the units, which they say are plagued with black mold and in a poor state of repair.
Windows are leaking, cabinets are falling apart, paint is peeling and some tenants are reporting problems with their hot water.
Mr. Sinilov, who also owns commercial furnishing company Metric Interiors, applied last year to the council to radically redevelop the 650m² site, but later deferred the request.
Then the huge rent increase suddenly arrived in the mailboxes of his tenants.
Tenants can appeal rent increases that are not in line with the market, and the court will consider the age and condition of the property and some similar costs.
Denis Sinilov celebrated Christmas with a huge Christmas tree in the middle of his sprawling childhood home and regularly takes lavish holidays
Mr Sinilov could not be reached for comment and Cohen Farquharson only issued a statement to the media earlier this week.
“It is part of our role as rental agents to provide a rental market assessment to help our clients determine whether they are receiving rent that is consistent with current market conditions,” the company said.
‘Ultimately, the landlord determines which rent increases will be passed on to the tenant.
“Even in this rental market, big rent increases are atypical, so when you see them, it’s often because tenants haven’t received regular annual increases over an extended period of time.”